The marketing world is going through significant changes due to the decline of third-party cookies and the ongoing concerns about data privacy. This transformation means marketers can’t only rely on traditional digital advertising methods used to acquire and retain customers. Instead, they must act fast and build a sturdy foundation of first-party data.
Not only are consumers increasingly aware of targeted ads that feel intrusive, leading many to opt out of third-party tracking, but there’s also an obvious rupture in the value exchange between brands and consumers. Consumers expect better, more transparent use of their personal data and may reconsider engaging with a brand if their expectations aren’t met.
Therefore, brands that used to rely on customer data from third-party sources and matching it with ad platforms are no longer favored as data privacy laws and customer preferences have evolved. Paid media teams that utilize a first-party data strategy, built in a privacy-safe way, stand to deliver a better customer experience overall.
In addition to these challenges, the walled gardens of major platforms like Amazon, Google and Facebook make it difficult to use data across different channels effectively.
This current situation is creating challenges as access to data becomes more fragmented and unreliable. Here’s a breakdown of the key issues:
To adapt to these changes, we are embracing a “privacy by design” approach with first-party data strategies. These strategies encourage customers to willingly share their data by offering meaningful benefits or perks, such as exclusive content, personalized savings, and rewards. Whether it’s a captivating offer, exclusive access or a personalized recommendation, they are compelling and inspire action.
Despite these challenges, brands that embrace the power of first-party data are positioning themselves for success in today’s privacy-conscious era. By delivering exceptional customer experiences and adapting to the evolving marketing landscape, they will achieve long-term growth and reap the rewards of customer loyalty – an approach far superior to finding loopholes around privacy with different third-party solutions.
For help with developing a first-party data strategy and executing digital advertising campaigns, reach out to our team of Paid Media experts at email@example.com or fill out this form online. Hope to hear from you soon!
Written By: Kelly Jensen, Senior Media Buyer