In a recent Forbes article entitled, “The Utilization Gap: Big Data’s Biggest Challenge”, Christine Moorman (@chrismoorman) describes what she calls a “utilization gap”, the gap between the amount of money companies are spending on marketing analytics and its usage rate…
CMOs recently reported that the percent of their companies’ marketing budgets devoted to big data will increase from 6% to 10% over the next three years…In data collected from The CMO Survey , companies with sales revenue of $10B or more will spend 13.7% of marketing budgets on marketing analytics in three years while companies with sales revenue of $25M or less will spend 9.2%.
Despite this big spend, there are reasons to worry that Big Data is not delivering its full strategic wallop. When asked to report the percentage of projects in which their companies use marketing analytics that are available and/or requested, CMOs report a dismal 30% usage rate. This number has decreased from 37% a year ago.
In her article, Moorman lists ten reasons why this “utilization gap” exists. We like her list in general but one reason particularly resonates with us…
Producers of marketing analytics produce data but not insights. Users need insights.
We completely agree. We believe one of the reasons marketing analytics solutions haven’t done a good job in delivering insights is because it isn’t easy. Marketing data these days is very fragmented and is tied up in a number of different data silos. Website analysis services, online advertising systems, social media networks – just to name a few examples – all have their own data silos. And often, to uncover actionable insights, disparate data needs to be compared and correlated.
This is our mission at Origami Logic. We want to break down the data silos so marketers can gain insights that will allow them to acquire and retain customers more effectively. Stay tuned as we will be providing more details about our solution later this year. In the meantime, if you want to learn more about what we are working on, please go to our website .