What is DataTech?
DataTech is a market sector that develops technological products that use big data analysis, Artificial Intelligence and machine learning algorithms to improve various market sectors, such as digital marketing or business analysis.
Data technologies help manage growing data sets
Data technologies are used to manage data sets that are growing all over the world. Year by year humans and machines generates loads of data. To control it and make profits from data, companies need adequate technologies.
DataTech sector helps to manage big data sets, build solutions for data management and integrate data from many sources, such as online (websites, landing pages, mobile apps) and offline (surveys). Collected information that is stored in one place is extremely useful in discovering business insights or analyzing behaviour of humans or machines.
Let’s take a look at numbers. Global amount of generated data will reach 163 zetabytes in 2025. According to Forbes, we produce over 2,5 quintillion of bytes every day. It determines growing spendings on technologies that help control data assets.
By 2026 big data market is expected to reach $156.72 billion. Spendings on data, including data technologies, such as Data Management Platforms, will reach $26.0 B globally in 2019, which is a growth of 26.6% YoY.
DataTech solutions: examples
DT sector include many solutions that process digital information. The technologies aim to manage growing data streams, discover valuable insights from data or find solutions to integrate various data sources.
We can point out key areas for DataTech sector:
Data Management Technologies - technologies and digital platforms, mostly provided in cloud, used for managing data generated by machines and customers - it includes 1st, 2nd and 3rd party data. Commonly used platforms on digital markets are Data Management Platforms or Customer Data Platforms. DMPs and CDPs help marketers to manage information about users and deliver them personalized messages.
Data Stream - it is a stream of raw data, such as timestamp or web history, used to enrich company’s CRM or build own data tools by internal data scientists team. Companies can use external data sources to fill the gaps in their customers’ profiles stored in CRM system. The process - CRM enrichment - makes it possible to create 360 customer view, which means that companies know not only name and email of their clients but also what they are interested in, how old are they or what they are going to buy.
Internet of Things (IoT) - there will be over 30 B machines connected to the internet next year and companies and users need technologies to control and check if the machines are working fine. So the IoT sector is extremely important for data technologies - it bases on data that machines generate every second. In simple words, DataTech sector develops products and services that help store and manage data generated by rapidly growing number of machines.
Data ecosystem - today companies deal with huge amount of data gathered from various sources. To help companies control growing data sets and tidy the data, there are services that help to build strategic data ecosystem in organization. It helps identify and choose the right data sources, integrate data and prepare adequate analytical algorithms, e.g., to discover new insights about customers, segment audiences, automatically check KPIs, find the best converting channels etc.
Technologies for AdTech sector - the advertising technology sector develops platforms and solutions commonly used in digital marketing that helps to deliver the ads to the right audiences. They are mostly technologies used in automated buying advertising model, responsible for purchasing ad space and displaying the right ads on publishers’ websites. The most popular solutions are:
Data Consulting - as the global volume of data grows rapidly, companies need to know how to properly use data and what it actually means for their business. That is why, data consulting services developed quickly. They are based on analysing customer data and are provided by specialized agencies that usually have on board experienced data scientists teams. Data consulting services help companies discover new insights from big data sets aimed to grow business or prepare accurate and detailed analysis. The services use Machine Learning algorithms to rapidly search huge and chaotic data sets and find useful information.
Audience Segmentation - some of DataTech companies are focused mainly on digital advertising industry and they provide solutions for finding the right target audiences for their clients. To segment audiences, companies use Machine Learning algorithms, that learns e.g. categories of websites visited by users to match the right interest or purchase intention to the right users. Ready-made segments are licensed to DSP platforms and can be used for targeting online campaigns.
DataTech sector is constantly developing
Since 2017 to 2026 a big data market will be growing at a CAGR of 19.3%. This fast developing market needs new tools to manage the data, make use of it and support new technologies. That is why DataTech sector is extremely important for various industries, not only digital advertising but also traditional ones, like Transportation, Energy, Media, Retail, Manufacturing or Healthcare. They adapt big data tools, which help them develop and accelerate their business or processes and this is why their interest in DataTech solution is growing.