Order From Chaos: How Big Data Will Change the World
Harnessing the exponential surge in data creates big opportunities.
Thanks to Purefunds Big Data ETF (BDAT) for helping us put this together.
IBM estimates that each day, 2.5 quintillion bytes of data are created or replicated. That’s the equivalent of a million hard drives filling up with data every hour.
The current volume of data created is substantial: it is so much that 90% of the world’s data has been created in the last two years. However, the amount of information today pales in comparison to what our future holds, as the rate at which data is created is accelerating exponentially.
It’s for this reason that The Economist estimates that there will be roughly 7x more data in 2020 than there was in 2014.
Where Does Big Data Come From?
Big data comes from both internal and external sources. Internally, millions of old documents and records are scanned and archived by businesses. Most of the time, no detailed analytics have ever been run on this information. Externally, the public web offers millions of data sets published for public consumption by government, economic, census, and other sources.
There’s also a broad spectrum of data that exists that can be a part of both of these categories: social media posts, documents, emails, business applications, machine log data, media, and sensor data can all be collected, processed, and analyzed. To get a sense of the extent of this information, here’s what is created every hour just from social media and email: 72 hours of video uploaded to Youtube, 4 million search inquiries on Google, 200 million emails sent, 2.5 million shares on Facebook, and 300,000 tweets made.
Big Data = Big Opportunities for Business
With proper analysis, Big Data can lead to new understandings of consumer behaviour, better management decisions, new innovations, and improved risk management. However, there are big challenges in making use of so much information.
- Too much data creates an information overload.
- Organizing and storing all of this data can be problematic.
- Companies don’t know how to use all of this data to create insight.
To organize and make sense of it all, data scientists use the three V’s to describe Big Data.
Volume is the scale at which data is created, and includes the massive amounts of information derived from phones, internet users, machine logs, and internet of things.
Velocity is the analysis of streaming data: for example, modern cars have 100 sensors that monitor different systems in real-time.
Variety is the different forms of data, and it reflects the fact that data comes in all shapes and forms. Finding a way to harmonize multiple types of data can be quite a challenge. Research finds that organizations spend up to 80% of their time modelling and preparing data, rather than actually gaining insight.
Let’s see how companies have been able to use Big Data to create opportunity.
Case Studies of Big Data
Macy’s adjusts pricing in near-real time for 73 million items based on demand and inventory.
American Express developed predictive models that analyze historical transactions and 115 variables to forecast the loyalty of customers. Using this data, they can see if customers may be potentially closing their accounts in the near future. Launching a pilot program in Australia, the company can now identify 24% of accounts in the country that will close in the next four months.
Walmart built a new search engine for their website that includes semantic data relying on text analysis, machine learning, and even synonym mining to create better search results. Online shoppers have been more likely to complete purchases as a result by 10% to 15%, increasing revenue by billions.
Los Angeles and Santa Cruz police departments have used an algorithm that is typically used to predict earthquakes, now using it to look at crime data. The software can predict where crimes are likely to occur down to 500 square feet. In areas the software is being used, there has been a 33% reduction in burglaries and a 21% reduction in violent crimes.
Today’s data centers occupy the land to equivalent to almost 6,000 football fields. By 2020, the amount of digital information is expected to increase exponentially to more than 7x of what it is today.
In healthcare alone, Big Data is expected to eventually save $300 billion per year in healthcare analytics. Retailers may increase margins up to 60% through Big Data analytics.
“Information is the oil of the 21st century, and analytics is the combusion engine.” – Peter Sondergaard, Gartner Research.
Which U.S. Generation Wields the Most Cultural Power?
Visual Capitalist’s first-ever Generational Power Index looks at which U.S. generation holds the most cultural influence in American society.
Which U.S. Generation Wields the Most Cultural Power?
This year, our team put together Visual Capitalist’s inaugural Generational Power Index (GPI), which looks at power dynamics across generations in America.
We considered three categories in our quest to quantify power: economics, political, and cultural. And while it turns that out Baby Boomers dominate when it comes to economics and political factors—the are of cultural influence is a different story.
Here’s a look at which U.S. generation holds the most cultural power, and how this power dynamic is expected to shift in the coming years.
Generations and Power, Defined
Before we get started, it’s important to clarify which generations we’ve included in our research, along with their age and birth year ranges.
|Generation||Age range (years)||Birth year range|
|The Silent Generation||76 and over||1928-1945|
|Gen Alpha||8 and below||2013-present|
Using these age groups as a framework, we then calculated the Cultural Power category using these distinct equally-weighted variables:
With this methodology in mind, here’s how the Cultural Power category shakes out, using insights from the GPI.
Share of Cultural Power by Generation
Overall, we found that Gen X captures the largest share of cultural power, at 36%.
|Generation||Cultural Power Share|
|The Silent Generation||8.8%|
*Note: figures may not add up to 100% due to rounding.
Gen X is particularly dominant in the film and TV industry, along with news media. For instance, over half of America’s largest news corporations have a Gen Xer as their CEO, and roughly 50% of Oscar winners in 2020 were members of Gen X.
Baby Boomers come in second place, capturing a 25% share of cultural power. They show particular dominance in traditional entertainment like books and art. For example, 42% of the authors on the NYT’s best-selling books list were Baby Boomers.
However, these older generations fall short in one critical category—digital platforms.
The Dominance of Digital
Why is digital so important when it comes to cultural power? Because digital media becoming increasingly more popular than traditional media sources (e.g. TV, radio).
In 2020, Americans spent nearly 8 hours per day consuming digital media, nearly two hours more per day than they spent with traditional media.
This divide is expected to grow even further over the next few years. With younger generations dominating the digital space, Gen X may soon lose its place as the top dog of the culture category.
Celebrity 2.0: The Social Influencer
As audiences flock to online channels, advertisers have followed suit—and they’re willing to spend good money to gain access to their target demographics.
In fact, spend on influencer marketing has steadily increased in the last five years, and it’s expected to reach $13.8 billion by the end of 2021.
This shift to social media advertising is redefining the notion of celebrity, and who reaps the financial benefits of content creation. For instance, six-year-old Vlogger Like Nastya made an estimated $7.7 million per month from her YouTube channel in 2020. And keep in mind, this estimate is purely based on YouTube revenue—it doesn’t even include corporate partnerships and/or merchandise sales.
With all these shifts occurring, culture as we know it is at a crossroads. And as we continue to move towards a digital dominant society, those who hold power in traditional realms will either adapt or pass along the torch.
Download the Generational Power Report (.pdf)
Ranked: The Most Popular Paid Subscription News Websites
Many consumers are reluctant to pay for their news, but those that do turn to trusted sources. Here’s a look at the most subscribed to news websites.
Ranked: The Most Popular Subscription News Websites
While paywalls are becoming increasingly more popular among news websites, most consumers still aren’t willing to pay for their online news.
In fact, a recent survey by the Reuters Institute for the Study of Journalism reveals that only 20% of Americans pay for digital news, and of those that do, the majority subscribe to only one brand.
This begs the question—which news outlets are audiences willing to pay for?
Using data from FIPP and CeleraOne, this graphic looks at the most popular news websites across the globe, based on their total number of paid subscriptions.
*Note: This report relies on publicly available data, and should not be considered an exhaustive list.
The Full Breakdown
With 7.5 million subscriptions, The New York Times (NYT) takes the top spot on the list. 2020 was an exceptionally strong year for the outlet—by Q3 2020, the NYT had generated the same amount of revenue from digital subscriptions as it had for the entire year of 2019.
|1||🇺🇸 The New York Times||7,500,000|
|2||🇺🇸 The Washington Post||3,000,000|
|3||🇺🇸 The Wall Street Journal||2,400,000|
|4||🇺🇸 Game Informer||2,100,000|
|5||🇬🇧 Financial Times||1,100,000|
|6||🇺🇸 The Athletic||1,000,000|
|7||🇬🇧 The Guardian||790,000|
|9||🇬🇧 The Economist||516,000|
|12||🇬🇧 The Sunday Times||337,000|
|13||🇬🇧 The Telegraph||320,000|
|14||🇺🇸 The Atlantic||300,000|
|15||🇮🇹 Corriere Della Sera||300,000|
|16||🇫🇷 Le Monde||300,000|
|17||🇺🇸 The Boston Globe||270,000|
|18||🇦🇷 La Nacion||260,000|
|21||🇺🇸 Los Angeles Times||253,000|
|23||🇺🇸 The New Yorker||240,000|
|25||🇧🇷 Folha de S.Paulo||236,000|
|26||🇸🇪 Dagens Nyheter||208,000|
|27||🇺🇸 Business Insider||200,000|
|31||🇨🇦 The Globe and Mail||139,000|
|34||🇫🇷 Le Figaro||110,000|
|35||🇺🇸 Chicago Tribune||100,000|
|36||🇺🇸 Star Tribune||100,000|
|38||🇫🇮 Helsingin Sanomat||100,000|
The Times is the most popular by a landslide—it has over double the number of subscriptions than the second outlet on the list, The Washington Post. Yet, while WaPo is no match for NYT, it still boasts a strong following, with approximately 3 million paid subscriptions as of Q4 2020.
Japanese outlet Nikkei ranks number one among the non-English news websites. It’s the largest business newspaper in Japan, mainly focusing on markets and finance, but also covering politics, sports, and health.
Legacy Papers: Which Websites Come From Traditional Media?
Most of the websites on this list stem from traditional media. Because of this, they’ve had years to establish themselves as trusted sources, and win over loyal readers.
Interestingly, more than half of the outlets included in this ranking are at least 100 years old.
|Publication||Year Launched||Age (Years)|
|🇬🇧 The Guardian||1821||200|
|🇬🇧 The Sunday Times||1821||200|
|🇫🇷 Le Figaro||1826||195|
|🇬🇧 The Economist||1843||178|
|🇺🇸 Chicago Tribune||1847||173|
|🇬🇧 The Telegraph||1855||166|
|🇺🇸 The Atlantic||1857||164|
|🇸🇪 Dagens Nyheter||1864||157|
|🇺🇸 Star Tribune||1867||154|
|🇦🇷 La Nacion||1870||151|
|🇺🇸 The Boston Globe||1872||149|
|🇮🇹 Corriere Della Sera||1876||145|
|🇺🇸 Washington Post||1877||144|
|🇺🇸 LA Times||1881||140|
|🇬🇧 Financial Times||1888||133|
|🇺🇸 Wall Street Journal||1889||132|
|🇫🇮 Helsingin Sanomat||1889||132|
|🇧🇷 Folha de S.Paulo||1921||100|
|🇺🇸 The New Yorker||1925||96|
|🇨🇦 The Globe and Mail||1936||85|
|🇫🇷 Le Monde||1944||77|
|🇺🇸 Game Informer||1991||30|
|🇺🇸 Business Insider||2007||14|
|🇺🇸 The Athletic||2016||5|
Yet, undeterred by these well-established outlets, a few scrappy websites made the cut despite a shorter history. Four out of the 38 websites are less than 20 years old.
The Athletic is the newest outlet to make the ranking. Established in 2016, the outlet’s target demographic is die-hard sports fans who miss the days of in-depth, quality sports writing.
The Need For Trusted Sources
Amidst the global pandemic, issues involving misinformation and fake news have helped reaffirm the important role that trusted news sources play in the dissemination of public information.
With this in mind, it’ll be interesting to see what the future holds for digital media consumption. With paywalls becoming increasingly more common, will consumers jump on board and eventually be more willing to pay for their news?
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