MEC point of view on “Analytics 2.0”

Written by Stephan Bruneau

Based on a sample of my most recent conversations, “Analytics 2.0” is trending fast and likely to take over “big data” as the most frequently quoted buzz word in management meetings. I guess it was only a question of time since one if fuelled by the other. So it was useful to see an article on this topic in the March 2013 issue of Harvard Business Review. It provides some interesting examples of the analytical solutions that are starting to emerge, based on disaggregated, people centrici data. My attention was also drawn to some of the comparisons with other types of analytics like Marketing Mix Modelling (MMM) – let’s call them Analytics 1.0 – that came across as potentially misleading for the uninitiated. So I have put my thoughts together on the subject in this paper, and also provided some context into how MEC can help clients take on the challenge of Analytics 2.0.

Analytics 2.0 opens up some really exciting perspectives of business optimisation that match the scale of big data. The techniques and mathematical models it uses are not new: binary modelling, structural equations and many more. What’s new is the abundance of people centric granular data (big data), which is the ideal fuel for these techniques to blossom and become effective business optimisation tools. Analytics 2.0 is not, however, the answer to all client questions. It provides similar outputs to MMM, but the granularity of data available focuses more on digital and CRM activities, rather than offline activities such as TV. MMM on the other hand, is good at capturing the effects of offline media, trade and marketing activities, but probably does not capture the full effect of digital activities, social media and owned content in particular.

Read on for the detailed insights