Analytics Magazine Analytics Magazine, January/February 2014 | Page 22

CAL L FO R TO P I C S Big data dreams, small data reality Because of this abundance of data, many “best practices” rely on making data-based decisions. Yet there are still many situations where we unfortunately do not have sufficient data to make such decisions. There is no doubt that we live in an era of dig data. We seem to have mountains of data about everything from business operations to customer behaviors, from personal health to global disease outbreaks. Because of this abundance of data, many “best practices” rely on making data-based decisions. Yet there are still many situations where we unfortunately do not have sufficient data to make such decisions. So what do you do when you have big data dreams but a small data reality? This is the focus of a new Analytics magazine column, debuting in the March/ April 2014 issue. Through this column we will explore how to deal with situations where we need data, but it’s limited or nonexistent. AT SCALE: BIG DATA BY BRIAN LEWIS 22 | I’ll give a specific example from my current work as chief data scientist at Fractal Sciences, a marketing automation software company that optimizes digital advertising and engagement (think Facebook and Twitter ads, but a lot more). Without giving too much away and without getting too technical, Fractal’s ad optimization algorithm is based in part on a proprietary feedback loop that uses prior ad campaign data to automatically predict, recommend, create and target new ads in order to maximize a customer’s ROI for their advertising spend. As a result, our customers’ ad campaign results get better and better the more they use our product. A N A LY T I C S - M A G A Z I N E . O R G W W W. I N F O R M S . O R G