The use of first-party data is becoming more important as society becomes more interested in the handling of personal information and restrictions on cookies are tightened. Along with this, the momentum for companies to consider the introduction of CDP is increasing, but it is also a fact that high hurdles are still waiting for the introduction.
In anticipation of such company challenges, Septeni began offering BigQuery-based CDP services from Google Cloud about three years ago.
How does this service called “problem-solving solution” support companies?
Mayuko Ozawa, Data Analytics Manager, Partner Sales Division, Google Cloud Japan GK, for tips on how companies with data marketing concerns can take a small start, the current state of the industry, and an overview of CDP services. We interviewed Mr. Hiroshi Aoki, Consultant, Data Integration Department, Data Business Headquarters, Inc.
(Interviewer: ExchangeWireJAPAN Tomoyuki Noshita)
(Writer: Ryu Watanabe)
(Sponsored by Septeni Japan)
-Please introduce yourself
Mr. Ozawa: My name is Mayuko Ozawa of Google Cloud Japan GK. At Google, he helped market data in the sales department of Google Analytics 360 and Google Marketing Platform. After that, she moved to Google Cloud, and now she is deploying solutions in the data analytics field centered on BigQuery to customers with partners.
Mr. Aoki: My name is Hiroshi Aoki from Septeni Japan Co., Ltd. After joining the company, I was engaged in support work related to advertising measurement for about 3 years. He currently belongs to the Data Business Headquarters and is focusing on data-driven marketing support for companies that utilize MA and CDP.
-The development of CDP construction services is progressing throughout the industry. Please tell us about the background.
Mr. Ozawa: Recently, the law regarding the protection of personal information has changed, and companies are required to give more consideration to privacy when handling data. Along with this, it is becoming necessary for companies to approach customer needs by utilizing data for which the license is clearly obtained from users, so-called first-party data. There are various options for achieving these, but I think there is a growing need for a CDP solution such as Septeni’s one.
Mr. Aoki: Due to the trend toward cookieless and restrictions on IDFA acquisition, the amount of third-party data that can be used by companies is decreasing, and it is beginning to affect the measurement of advertising effectiveness. Recognizing the need for CDP as the basis for utilizing first-party data that replaces cookies in the future, we have been developing a CDP construction service for about three years.
-How widespread is CDP in companies at present?
Mr. Ozawa: At first, we started using it from customers who are originally strong in digital marketing, who are developing business online and have some engineers. Most recently, non-online customers such as retail, consumer goods, finance, and real estate, regardless of size or industry, have begun to work.
-What do you think is required of partners who provide CDP using BigQuery?
Mr. Ozawa: I think that a partner who can smoothly collaborate with customers in the field of marketing analytics is required differently from supporting mission-critical systems. In normal system construction, he is centered on the IT department, but in the CDP area, the marketing department is the center of the project. It is necessary to provide total support from a bird’s-eye view of the needs of the marketing department, the desired results, and understanding of the advertising business. In addition to that, there may be a need for a consulting role that can provide advice that goes into the customer’s business plan, such as what kind of data needs to be prepared and how to increase user contact for that purpose. ..
-Mr. Septeni is certified as a Premier Partner of Google Cloud.What are your thoughts on Septeni’s strengths in the field of marketing analytics?
Mr. Ozawa: Once the foundation is built for CDP, it is not the end, and customer support after that becomes very important. It is indispensable to understand what kind of CDP will lead to results, and to work with customers from measuring the results to turning PDCA to lead to improvement again. Mr. Septeni has strengths in the execution of marketing measures centered on advertising, and since it is a style that goes deeply into the part that connects data utilization to business results, it is a very important and trusted partner in the field of marketing analytics. It is like.
―What are the features of Septeni’s CDP service?
Mr. Aoki: We introduce CDP to our customers as a “problem-solving solution”.
Nowadays, there are cases where only words such as CDP and DX precede and CDP itself cannot be used efficiently. One of the factors may be that the business design of introducing CDP after clarifying the problem to be solved has not been completed. If the task is not set and the means is taken first, the purpose of introducing CDP will be unclear. At our company, we have a system in place to go from the overall design to the introduction and construction in the form of accompanying the customer, and to perform data analysis and policy implementation all at once. Since CDP also has various characteristics, we provide a solution that calculates back from the purpose, highlights the issues, selects the optimum CDP, and connects it to the implementation of measures.
-I think CDP is a solution with high hurdles for companies that have not been working on data utilization.What are your thoughts on that area?
Mr. Aoki: It is true that CDP is a very large-scale project when you look at the overall design, construction work, policy implementation and overall flow from there, and it takes man-hours and costs. Therefore, we are developing a service called “Precog” as the first step to start CDP. Since the environment for this service is prepared by our company, the cost is overwhelmingly lower than developing and preparing a CDP from scratch, and since the mounting work is done by our company, the man-hours can be reduced. As a service outline, machine learning is applied using the company’s first-party data to calculate the prediction probability for a specific purpose. For example, if you are a company that develops EC services, it is possible for companies such as users who are easy to make a second purchase to start scoring for customers who want to increase engagement and deliver advertisements based on the segmentation.
-How much does it cost to use “Precog”?
Mr. Aoki: I can’t say it unconditionally, but it’s about 1/100 of normal CDP. Generally, the cost of a conventional CDP is about 10 to 20 million yen, but Precog can provide it for 100,000 to 200,000 yen. First of all, you can experience the value of CDP with Precog, and when you need more abundant data linkage, you can take the step of utilizing CDP in earnest.
-How does Google Cloud’s BigQuery position among the many CDPs from Septeni’s point of view?
Mr. Aoki: There are various types of CDP. We roughly classify it into “package type CDP” and “customized type CDP”. The packaged CDP is a little expensive, but it has all the functions related to CDP and does not require development by the user. On the other hand, customized CDP needs to be developed by the user in order to function as a CDP. Instead, it is a pay-as-you-go system, so it is easy to make a small start. BigQuery is a customized CDP. For companies that do not have clear issues or requests, they often start from a small start, so from that point of view, BigQuery is very useful and we recommend it.
Mr. Ozawa: BigQuery has great advantages. That is the integration with Google Analytics.
Since Google Analytics has the ability to output data to BigQuery from the beginning, there is no need to develop new data exports. I think this is a big advantage as many customers want to integrate user behavior on websites and apps with other data and utilize it for various marketing measures. Since Google Analytics is already used by many customers, many customers are starting to use it as a CDP by combining Google Analytics and BigQuery, and Septeni has also suggested it. In addition, the amount of data increases as you use existing tools, and the response deteriorates because you cannot bear the weight, and you may have to rebuild the environment. BigQuery automatically scales according to the amount of data, so you don’t have to spend time on operations, and you can spend more time analyzing data and using it for measures. One of our strengths is that it is suitable for small starts and can respond to future increases in data, so it can be used flexibly according to the customer’s phase.
-Are there any messages for companies considering the introduction of CDP?
Mr. Ozawa: Until now, data utilization on the customer side was difficult and often costly, but now there are products such as BigQuery that can be easily started at a low price, and data utilization. I think that an environment that is easy to remove has been set up. There are also partners like Septeni who understand marketing and accompany us, so I would like you to start with some data utilization.
Mr. Aoki: Recently, the number of points of contact between users and companies is increasing. In the past, one of the typical measures was to guide customers from TV commercials to stores, but now there are various forms such as LINE, SNS, and push notifications for apps. In the future, how to utilize the first-party data obtained from many touch points will be the key to data marketing. Small start is possible by using BigQuery and Precog, so if you have any concerns about data marketing, please contact us.