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Big Data in Digital Marketing: Role and Benefits

Big Data in Digital Marketing: Role and Benefits

Technology is constantly progressing, and consumer behavior is changing. Because of this, organizations need to have more effective business strategies to increase their sales and improve their market value.

Marketers collect digital information, including data and analytics, to develop effective marketing strategies and business management. The collected data and analysis are known as big data, which is vital in the digital marketing world.

But, how important is big data in digital marketing? And how can it help you and your business in creating efficient marketing strategies?

4 V’s of Big Data

Big data has four dimensions: Velocity, Volume, Variety, and Veracity. These things can help you understand why you need big data intelligence in developing digital marketing strategies.

Without understanding one, creating a strategy in digital marketing may become challenging and ineffective.


This refers to the data collected that is stored, analyzed, and processed by the marketers using machines. This data is usually too large for a consumer desktop or laptop to process.

Due to the increasing number of people using mobile phones, the volume of the data grows at a faster rate. This means an efficient system should be created to accommodate the flow of big data.


This is the speed at which data is stored, analyzed, processed, and used. Marketers calculate the pace of all the data processes. Some data is generated with high velocities, such as the ones from social media websites like Facebook.

This is because of the massive amount of information processed at a swift pace, and a lot of users are entering the site every second.


Variety is the different types of data and where they are from. You can find and access data through many platforms, such as websites, including social networking sites, apps, and different devices connected to IoT (Internet of Things), which collects a large volume of information.


Veracity is the quality, accuracy, and credibility of the analyzed data. This is a critical element of big data. Keep in mind that the more credible the data is, the better accuracy you can have when creating digital marketing strategies.

High veracity data has several metrics that are useful to analyze and contribute to the overall results. In contrast, low veracity data are more likely to be meaningless.

Customer Insights

Understanding the target audience is crucial to creating effective digital marketing. So, marketers should analyze the big data to get the right audience. Finding your target customers and understanding their behavior will help you increase your sales. This means it can make your business more successful.

Make sure that you keep healthy interactions with the customer to gather a large amount of data. The data you acquire will help you develop a new digital marketing strategy to increase your traffic.

As you get your customers’ vital information, you will be able to understand their needs and wants. These things can be the key to aligning your business with them. Using sentiment analysis can help you get customer insights. It is the procedure of gathering and analyzing data about what they think about your company, brand, and product or service.

You can understand your customers more by studying their feedback in reviews, social media posts, and customer care conversations. Both positive and negative reviews can help you understand what they want and need, which you can use later to adjust your business.

Designing Better Marketing Campaigns

You can target your customers’ needs by collecting information about them and their behavior through internet activities, purchasing patterns, and background. But you have to analyze the data accurately. You have to determine which ones are useful and not in creating a strategy.

To develop better digital marketing campaigns, you have to use good analytical tools. This will create useful conclusions from the data provided. This will also allow you to make business decisions more efficiently.

A good analytical tool can access every type of data, including social media data, cloud, emails, websites, log files, and more. Also, it should support real-time analytics, support campaign attribution, funnels, and integration tools. Study the graphs, charts, and rankings to see what is in demand and which ones are doing poorly.

Competitive Analysis

Determining and studying competitors’ marketing strategies can also help gather data on how they gain and keep their customers. This will determine what causes people to click their ads and drives traffic to their pages.

You can use this data to compare your company to other competitors regarding your strengths and weaknesses. Knowing what makes your company tough and stable in the market will help you communicate with your customers more. You can help them understand why you have the best product or services in the industry.

Also, being aware of your company’s weaknesses can help you identify where you should put your resources and time. You will search for the root of your problems and find how you can improve them. And with a proper strategy based on the data gathered, you can turn the weaknesses into strengths.

Making Better Pricing Decisions

Companies often use basic information to price their products and services: competitor pricing, trends, demands, and the product’s value to the customer. However, with access to big data, you can use other factors to price your products and services. This includes data from incentives, completed deals, and performance-based data.

When you use big data for your pricing, you have to keep in mind that you may have tons of unused data available. The data that you might already have are general economic information and customer preferences. This allows you to automate with AI, which can help you save a lot of time in setting prices and achieve better results in more accurate pricing decisions.

Showing Appropriate Web Content

Quality content can attract more visitors to the website, leading to more traffic. So building a site that can attract more people is essential. Make it appealing to your target customers and make sure that the contents are great.

Any kind of data can determine what the visitor is interested in, so you will first need to understand what searches have a higher volume. Then, customize the content you are putting on your website, creating opportunities to attract more customers.

Showing ROI

Through digital marketing, you can use the data to show your investors how their investments are used and in which areas their money is increasing. Of course, you do not want them to lose any.

You have to examine all the actionable items to determine your digital cost. Doing this will help you figure out whether your strategy is working or not. If you see that it is gaining profit, you should create a strategy to maintain its flow or perhaps make it better.

And in case it isn’t, you can use the data to create a more effective plan for getting a higher return on investments.

Sum Up

Big data provides the insight you need to create effective digital marketing ideas for various channels to increase your sales. By gathering the right information and using the proper tools, you can influence the decision of customers and affect their purchasing behavior

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by Owen Carter // Owen is a marketing specialist. He works with advertisers and publishers directly, enhancing their marketing campaigns. Owen understands the importance of having the right tools for the job. He got his start designing and implementing a proprietary platform at a major performance marketing organization. During his free time, Owen enjoys rereading company emails and looking for mistakes.

Opinions expressed by contributors are their own.