Customer Data: The Intangible Asset You Did Not Realize You Have
Customer data is more than just addresses, phone numbers, zip codes, and work phones. In the age of programmatic media buying, customer data is quantified and codified down to screen behavior, social behavior, geo-location, favorite foods, favorite vacation spots, and much more. The evolution of customer data is the major driver behind creating business value and yet one of the most elusive.
Jahani and Associates analyzed over 500 M&A transactions among technology giants. We determined that 100% of the marketing and advertising acquisitions were driven by customer data capabilities. Technology giants use customer data to improve media buying. The acquired customer data capabilities:
- Increased the number of customer data interfaces for the acquirer. For example, Alphabet’s acquisition of Famebit.
- Increased the processing power of the acquirer’s customer data. For example, Alphabet’s acquisition of DeepMind, which provides deep learning solutions. Ray Kurzweil, director of engineering at Google, said that he wants to build a search engine so advanced that it could act like a “cybernetic friend.”
Companies seeking to maximize their value in the technology space must intimately understand their data and how it can be used to improve both collection and processing to generate insights. Jahani and Associates use our experience in tech M&A and investment banking to understand how our clients will increase their competitive advantage around customer data.