Gone are the days of programmatic as the marketer’s domain – the publishers have their hat in the ring. The Pangaea Alliance, the new private programmatic marketplace created by a partnership between The Guardian, CNN International, The Financial Times, The Economist and Reuters, is the latest example of traditional players harnessing the latest ad technology to cut-through in an increasingly fragmented market. The partnership follows a model similar to that of the successful La Place Media and Audience Square alliances in France as well as platforms set up by The Danish Publisher Network and the Czech Publisher Exchange.
These alliances are demonstrating the power of first-party data – a resource too often left untapped by marketers. They’ve shown that by sharing their data, publishers can position themselves to compete against the sizeable datasets of Facebook and Google. First-party data is, potentially, an organisation’s most valuable asset, but surprisingly, only now are businesses beginning to see how by taking control of this data, they can take control of their customer relationships and improve their bottom line
Recognising the Value of First-Party Data
Marketers have traditionally relied on third-party data, panning for valuable nuggets in others’ information while they sat on a gold mine of their own. This is because many marketers define first-party data too narrowly, not realising they can draw insight from existing, albeit, sometimes disparate, sources.
First-party data includes not only website interactions such as registration and subscription data volunteered by consumers but also information inferred or observed during their visits. This might include interactions with specific campaigns and actions driven by content, commerce, or advertising, such as clicking on a call to action, or converting through some sign-up, download, or purchase. All of this behavioural data, gained firsthand through customer interactions, is significantly more robust and reliable than data acquired from other sources. It empowers marketers and publishers to gain a more complete version of their customers. Rather than targeting them in a rudimentary way, simply based on the last item they viewed or relying on third-parties to define customer categories and preferences, organisations can set terms that apply specifically to their targets and in turn, entice those who are aiming for the same.
Unlocking the power of first-party data allows marketers to understand beyond the surface level demographics of who their customers are, and enables them to know more about what they do when they’re interacting with the brand. Piecing data from siloed sources into new insight can be a challenge and given its value, this resource must be protected from rogue or unauthorised usage – which is why many turn to data management platforms (DMPs). But once brands begin maximising the use of their existing first-party data, they can start zeroing in on their targets for more effective audience segmentation and analytics.
Blurring the Lines between Publishing and Marketing
Relevant, insightful content is the new currency in today’s cluttered marketplace and brands that generate content simply for the sake of it quickly realise that just because you build it, doesn’t mean they’ll come. Consumers are looking for more meaningful relationships with brands and authentic content is the string that binds them together – regardless of whether the content comes from a publisher or a brand. In fact, from the consumer perspective, it may not matter if content comes from a brand so long as it is engaging or informative.
By better understanding readers and customers, first-party data allows both publishers and marketers to create more engaging content experiences. Now, we’re seeing the content creation line blur between publishers and marketers – marketers are content producers and publishers are brand marketers. New publisher-led programmatic advertising solutions that leverage first-party data, such as the Pangaea Alliance, are only further blurring the line between the two industries. Publishers use the data to learn which content best resonates with their audiences, increase engagement and strengthen loyalty. They then offer marketers highly detailed information about that audience which they can target more closely and deliver higher yields on scalable ads and content. The relationship also benefits consumers who receive higher quality content and advertisements that are more relevant to their interests.
By taking control of existing first-party data, publishers and marketers take greater control of their reader and customer relationships. Owning and activating that data is the key. Instead of selling off data or handing it over to an ad network, organisations can use it to develop new products and services, increase the value of existing offerings, use targeted content to increase engagement and target commerce offerings to improve conversions and sales.
Jo Gaines
Country manager Australia and New Zealand
Krux