The online business industry saw exponential growth in 2021, with the number of online businesses and stores growing from 12 million to 24 million stores, which serve an estimated 2.14 billion global consumers.
The massive increase of online stores is thanks to a few different factors. However, AI-based computational processes and Big Data algorithms have revolutionized the digital store space, by providing store owners with in-depth statistics, such as purchasing trends specific to geography, ethnicity, and age demographic.
Big Data is defined as difficult or impossible data to process using traditional methods due to its enormous volume and complex nature.
The concept of Big Data first started to gain notoriety in the 2000s when Dough Lanely, an industry analyst, stated that the definition of Big Data could be defined as the three V’s;
- Variety – The different formats in which data can appear, such as structured and unstructured data.
- Velocity – The speed at which volumes of data are needed to be processed.
- Volume – The Size of collected data that needs to be processed.
According to statistics conducted in October 2021, roughly 4.88 billion people used the internet via mobile devices and personal computers. This has resulted in online businesses investing in better analytical and data processing solutions to track and understand their clients and target audience.
To better understand these consumer trends, Big Data is used by these online businesses to help develop sales and marketing strategies.
Roughly 70% of all global companies use Big Data automation and digitalization processes. These companies include E-commerce stores, online gaming platforms, and website listings.
Big Data provides companies with the necessary information to help the business growth within their respective international and regional markets, helping attract a more excellent pool of online users.
The rate of online interactions has been discovered to directly impact the company’s conversion rates and online sales using Big Data.
Below are four online business models that utilize Big Data to understand consumer behavior and upcoming market trends better.
- E-commerce Stores
- Online Gaming Platforms
- Social Media Applications
- Digital Financial Platforms
Over 2300 gaming companies are operating in the United States with a current market value of $ 59 Billion. Such market is expected to reach an estimated $ 92.9 Billion by 2023.
Online gaming platforms offer users access to a range of games: from online multiplayer games, MMORPGs, and battle royale games to online casinos like Leo Vegas and PokerStars – a few popular choices from this best online casino list. In fact, PokerStars became the official sponsor for famous motorsports racing format F1. This type of popularity attests to online gaming’s strength and continued valuation increase in the market.
When Big Data is utilized within this space, it allows companies to shape and create user-oriented decisions, games, digital environments, and templates, all whilst increasing their share in the market.
Big Data Structures offers stores better sales funnels and marketing strategies within the E-Commerce space. This helps companies procure and produce products that are preferred and centered around the companies users, which helps attract potential online customers and increase the online stores’ conversion-rate optimization.
In conclusion, Big Data and AI algorithms are indispensable online tools that companies and businesses can utilize to tailor their products to their target market.
Online businesses will increase their sales by using Big Data when the solutions received from the analytics provided via Big Data solutions are implemented within the company’s digital space.