Friday, November 23, 2012

Big Data Hurts Brands

Crossing the Chasm Geoffrey Moore thinks Web ads personalized by Big Data will harm—not helpyour brand.
In a blog post on LinkedIn, Moore says that, while Big Data and predictive analytics boost online advertising response rates a couple points, "they do not deliver a more personal, more relevant, or more one-to-one consumer experience."
"Don’t think that any of these techniques are going to create 'delight' among your target audience any time soon," he writes. "They aren’t. Spam is spam, with or without your maple syrup.  When you spam, you are consuming brand equity—not creating it. That’s what 'personalized' ads do."
If you want to create brand equity, Moore says, you have to engage your fans in a community, so they talk about you. 
Brand equity "is driven by social interactions with others in your target consumer’s community of interest," Moore writes. "By sponsoring such interactions, by facilitating them, and by (selectively) participating in them, you can indeed grow brand equity."
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