In a world inundated with information, it has become imperative for marketers to refine their approach, ensuring that the messages they convey resonate on a personal level with their audience.
In this environment, it will be crucial for marketers to activate their first-party data to deliver more personalized campaigns across a multitude of channels.
At the same time, marketers must be compliant with new consumer data protection reforms. One of the largest challenges we are facing today within our digital ecosystem are the limitations caused by new data privacy regulations, and Australia is no exception. The new Privacy Act is set to be tabled in Parliament in a matter of months, and the final shape of the legislation in matters of data handling is yet to be determined.
We do know that privacy has become central in the industry and it is an important component, forcing advertisers to become more creative with how they target the right user at the right time.
First-party data is information collected directly from customers and prospects. It is gathered from engaged, consenting users who are familiar with your brand and product offering. It’s data that your organization has collected from your audience. This could include data from CRMs, website visitors, social media followers, emails, and even phone calls.
By collecting this reliable and accurate data, you can trust that the data is up-to-date and reflective of the actual behaviour of your audiences. This allows for more personalized and engaging customer experiences while maintaining compliance with privacy regulations.
Marketers should actively seek collaborations and work with technology partners in the programmatic space, especially those diligently enhancing their solutions to align with regulatory standards, all the while developing innovative targeting strategies.
First-party data is powerful in four areas when it comes to planning, executing, and analyzing programmatic campaigns.
First is Accuracy and Relevance. First-party data comes directly from interactions and engagements with your audience, ensuring accuracy. This data is collected from an advertiser’s website, app, or other owned channels, providing insights into their customers' behaviours, preferences, and demographics.
Second is Customization and Personalization. Leveraging first-party data allows advertisers to customize and personalize their ad campaigns. By understanding individual preferences and past interactions, advertisers can tailor ad creative, messaging, and targeting to better resonate with their audience, leading to higher engagement and conversion rates.
Third is Increased Return on Investment. With better targeting and relevance, ads delivered using first-party data tend to yield higher ROI. By reaching the right audience with the right message at the right time, advertisers can maximize the efficiency of their ad spend and achieve better performance metrics.
Fourth is Data Ownership and Control. Unlike third-party data, which is obtained from external sources, first-party data is owned and controlled by the advertiser. This means they have full access to the data, can analyze it as needed, and don't have to rely on external vendors. This ownership also helps ensure compliance with privacy regulations and builds trust with customers.
First-party data can be more adaptable and flexible to changes in consumer behaviour and market trends. Advertisers can quickly adjust their strategies based on real-time insights from their data, rather than relying solely on external sources which may not always accurately reflect their target audience. From a flexibility perspective, the team at StackAdapt can deploy first-party data across the main advertising channels of native, display, video, CTV/BVOD, audio, DOOH, and in-game.
The biggest challenge will be for brands and advertisers that haven’t started building their database of customers extensively and have smaller audience pools to work from. A savvy approach would be to work with your small data sets to create look-a-like audiences and build even further on top of the existing customer base to ensure a more long-term approach to data collection.
The control and personalization of first-party data allow us to consider multile touchpoints on a customer journey to help build more sophisticated programmatic advertising campaigns.
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