The big data analytics trend is appearing in virtually every market these days. But despite the emergence of new markets like the “internet of things” that apply data analytics to efficiently operating connected devices, digital media and the financial industry remain two of the largest markets for big data.
Within the financial industry, real time data analytics processing is a key function of operating high frequency trading algorithms which react to changes in the market. Also, FX liquidity providers use the technology to dynamically adjust currency spreads and monitor customer trading habits. In digital media, analytics appears most prominently in advertising, as publishers and firms use it for optimizing things banners, website text size, design and search advertising campaigns.
Due to the overlap of use cases, several data analytics firms target both financial services and digital media industries. Joining those ranks is First Derivatives which announced today its entrance into the digital marketing market with their launch of the Delta Marketing Cloud. The expansion of their product coverage follows last year’s increase of ownership in Kx Systems to a majority stake. A provider of big data analytics solutions through their kdb+ product, Kx Systems technology is being integrating within First Derivatives’ Delta software platform which had previously been servicing the financial industry exclusively.
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According to First Derivatives, the firm aims to capture part of what they believe could be a $32 billion market by 2018. Upon entering the market, First Derivatives stated in its public note to shareholders that the Delta Marketing Cloud will be assisting customers “by combining both speed and scale with a flexible scoring algorithm and alerting process to allow clients to target the right prospects at the right time.” The solution is stated to be able to evaluate numerous sources including website traffic, real-time advertising data, and social media. The product includes a proprietary CRM.
Looking ahead, it will be interesting to see if the Delta Marketing Cloud product will be cross marketed to existing broker clients. Possible use cases for brokers is end-to-end analytic customer monitoring which can correlate lifetime client values and their acquisition costs. Also, the social media profiling within their CRM can determine which customers have a preexisting interest in trading and broker products. In this regard, when asked by Forex Magnates about cross selling synergies, company representatives answered that they had no direct plans to market the new product to existing customers, but that they view Delta Marketing Cloud as a new market and opportunity for the firm.
In their public comments, Brian Conlon, CEO of First Derivatives, stated, “We are pleased with the level of interest being shown in Delta Marketing Cloud which has already resulted in us signing a number of key pilot customers. While its commercialization is still at an early stage, we believe it has the potential to generate significant recurring revenues for the Group. The launch also demonstrates the flexibility of the Delta platform and its ability to take us into new markets where there are exceptionally large volumes of data that require real time analysis. Our technology and experience gives First Derivatives a strong position in this expanding market.”