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Data mining in the credit crisis

Posted in Analytics, Business Intelligence, Data Mining, NYTimes by Pankaj Gudimella on February 2, 2009

In recent months, American Express has gone far beyond simply checking your credit score and making sure you pay on time. The company has been looking at home prices in your area, the type of mortgage lender you’re using and whether small-business card customers work in an industry under siege. It has also been looking at how you spend your money, searching for patterns or similarities to other customers who have trouble paying their bills.

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Guessing the Online Customer’s Next Want

Posted in Data Mining, NYTimes, Online Marketing by Pankaj Gudimella on May 19, 2008

Marketers have always tried to predict what people want, and then get them to buy it.

Among online retailers, pushing customers toward other products they might want is a common practice. Both Amazon and Netflix, two of the best-known practitioners of targeted upselling, have long recommended products or movie titles to their clientele. They do so using a technique called collaborative filtering, basing suggestions on customers’ previous purchases and on how they rate products compared to other consumers.

Figuring that out is not so easy. For one thing, people do not always buy what they like. Someone may buy a sweater for their grandmother even though they dislike it and would never get it again. Similarly, a person who rents a movie may actually detest it but knows her child likes it. Or a film that was seen on a small airplane screen may garner a lower rating than if it were seen at a large multiplex.

More here from NYTimes.

ONLINE SEARCH ADS FARING BETTER THAN EXPENSIVE DISPLAYS

Posted in Analytics, NYTimes, Online Marketing by Pankaj Gudimella on May 19, 2008

In the past few years, Web publishers have made a big bet on booming online advertising revenues. But the economic slowdown may be throwing a wrench into those plans.

While search advertising remains strong, there are signs that the growth in online advertising — particularly in more elaborate display ads — is slowing down. In the past few weeks, major online-advertising players, like Yahoo and Time Warner, have posted mixed results.

And online publishers may be getting less money for the ad space they do sell. The prices paid for online ads bought through ad networks dropped 23 percent from March to April, according to PubMatic, an advertising-technology company in Palo Alto, Calif., that runs an online-pricing index. Large Web publishers fared the worst in PubMatic’s study, with the prices they received through networks dropping 52 percent.

More here from NYTimes.