In the past 6 months there’s been an influx of news coverage around what’s been deemed the “cookie apocalypse” and how this will impact ad targeting in the future. Our recent piece in Marketing Magazine outlines how first-party data is the key to both better targeting for advertisers, as well as better privacy and protection for consumers.
But not all first-party data is created equal. Here we explore its role in the future of advertising, and what to expect in the cookieless world.
First-party data in the digital realm
First-party data refers to the information a business collects directly from their customer base. In the case of digital publishers (EG news.com.au, mamamia), or any website with a logged-in community (EG asos, adore beauty), this can include any kind of in-site behaviour. For publishers, this could be the kinds of articles a consumer engages with, for brands it could simply be which kinds of products are purchased the most.
Within a branded, digital environment, collecting this type of information creates a unique opportunity for brands and publishers to turn their customer base into highly profiled digital audiences. This not only gives their marketing teams the insights they need to provide personalised customer experiences, it also provides the business an option to generate additional revenue. By allowing brands to advertise their products and services to these consumer groups, for a fee, the company can create a stream of passive income – a practise known as audience monetisation.
This form of audience monetisation is a great example of how first-party data can be used to improve the digital landscape. The benefits here are three-fold:
- Advertisers will have new ways to connect to the right audience groups
- Brands & publishers will have more control over the advertising that features on their digital properties
- Consumers will be given tailored content that’s more relevant to their needs
As cookies are phased out, it will become increasingly critical for brands & publishers to build out their own first-party audiences, as well as partnering with businesses who are doing the same. This ensures that they can continue to spread their message across the wider digital environment.
What’s next in the cookieless world?
In response to the changing digital landscape, many companies have begun to develop their own ID solutions to provide marketers with an alternative to third-party cookies. This is good news for brands and advertisers alike, however, businesses with logged-in digital communities will still have the biggest competitive advantage. Owned, first-party assets will continue to rise in value.
While it’s going to be more difficult to make use of data outside of logged-in environments, adtech will ensure that targeting of programmatic ads from the buy-side will still be possible. The entire ecosystem will be cleaned up – instead of focusing on volume and scalability, marketers will instead be seeking out high-quality, niche groups to connect to.
First-party data will be essential within the owned environments of publishers or brands, but will also become a valuable commodity to be sold, traded and utilised across multiple platforms.
The role of declared data
Savvy marketers know how to make the best of their first-party assets – whether it’s clever client engagement via CRM data, next-best-action modelling based on purchase behaviours, or mapping content preferences based on in-site behaviours.
While these techniques will continue to play an important role in digital marketing for years to come, they are still fundamentally based on assumptions. For example, if someone recently purchased a car, an advertiser may assume that they’re also open to hearing about car insurance products and target them accordingly. In some cases, the advertiser may be correct – but this is often not enough information to ensure campaign success.
The only way to truly understand what products and services a consumer needs is to simply ask them. This is where declared data derived from questions and answers comes into play.
At Pure.amplify we have direct access to the most valuable declared data asset available – a global research panel. We ask real people real questions to collect real insights on a daily basis. We can simply ask our members if they are in fact in the market for car insurance, and connect advertisers to them.
Our proprietary technology can use survey responses to build digital audiences and push those groups to various adtech platforms. Our first-party data is integrated with the most future-ready adtech platforms in the market so that brands, agencies and publishers are set for success in the cookieless world.
Want to know how to prime your business for the future? Reach out to our dedicated team of data experts to find out more.