• by Mendel Senf , Op-Ed Contributor, June 5, 2014

"Big data is like teenage sex: everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it..." is a now infamous quote quipped by Daniel Ariely. 

Today’s technology, targeting and advanced metrics have supplied brands with a plethora of data points. The harsh reality is that the true potential of all of this data is never realised because companies simply don’t know how to make sense of it all. The end result is an increase in waste and a loss of potential revenue.

Even organisations that begin to segment their data are at a loss because traditional segmentation strategies are based on static, pre-managed categories, giving marketers stale irrelevant data. What good is your data if it’s inaccurate or outdated?

Fortunately, there is a solution. Let me introduce you to your new matchmaker – hyper segmentation! Luckily, companies often have the information they need to hyper segment already moving through their architecture, but simply need a bit of guidance to leverage its power.

By hyper segmenting data in real time, dynamic, pinpoint accurate segments can be created, to be targeted on demand. Harvesting data at its freshest point and integrating it into a programmatic marketing strategy allows marketers to activate their data into revenue driving results. 

The best way to leverage and maximise hyper segmentation is by working with a technology provider that houses both a Data Management Platform (DMP) and Demand-Side Platform within its inner workings. This ensures that your data is being processed,  segmented and activated, all in real time, without any disconnects. This also allows for your campaigns to be continually optimised based on how your data changes over time, ensuring that you maximize return on ad spend.

Highlighting the importance of data ingestion and activation is a recent study conducted by Adobe. The study found that data-driven digital marketing triples conversion rates.

"Data-driven is most definitely the way to go. Companies that are approaching digital marketing with a technical focus on data and optimisation are, simply said, beating the competition," concludes John Koestier, VP Product, VentureBeat. "There are many, many marketers who are trying to go data-driven and failing. In many cases the differences in investment and focus between the best and the rest does not appear to be that significant, which means that it’s not just that you’re investing in optimisation and other conversion improvements, it’s what you’re doing and how you’re doing it that matters. Which means that digital marketing is not just something for companies to throw money at. It’s a core competency to engrain in your DNA."

The best way to engrain a data-driven approach into your organisation is by hyper segmenting. Programmatic marketing fueled by hyper-data segmentation links the supply of your business with the demands of your customers – becoming the connector between the beating heart of your business and incremental revenue generation. 

For instance, an airline company can fill a plane by serving up ads, in real time, based on load capacity metrics to increase its RASK (revenue average per seat per kilometer) or a hotel can reach maximum capacity to boost ADR (average daily rate).

Hyper-data segmentation allows for companies to eradicate old and inefficient processes to become faster, cleaner and eliminate waste. The end result is a more relevant communication between brands and their customers, and an increase in revenue.