How To Harness First-Party Data & Win In A Cookieless Future
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The document outlines the challenges and opportunities presented by the evolving privacy landscape affecting digital marketing, particularly the shift away from third-party data due to regulations and changes by key players like Google and Apple. It emphasizes the importance of leveraging first-party data as a definitive solution to navigate these challenges, detailing strategies for effective data utilization and personalization, as well as the necessity for organizations to build robust data infrastructures. Furthermore, it highlights the need for effective segmentation, measurement, and the overcoming of organizational challenges to fully harness first-party data for improved marketing effectiveness.
How To Harness First-Party Data & Win In A Cookieless Future
- 2. VISHAL MARU • Over 13 years of growth and product marketing leadership experience, across firms in North America, Europe and APAC • Currently VP Digital Solutions at iQuanti and leads cross-channel strategy and solutions for clients, with focus on financial services • Previously, led customer acquisition efforts at Discover and Enova Financial.
- 3. 1 The evolving privacy landscape Today we’ll discuss… 2 Why first party data? 3 How to effectively leverage first party data? 4 Building a roadmap for implementation
- 4. The changing privacy landscape is having a dramatic impact on the digital marketing eco-system The evolving privacy landscape
- 5. The continued focus on privacy is leading to changes in the legal and technology landscape
- 6. Changing customer mindset The continued focus on privacy is leading to changes in the legal and technology landscape
- 7. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. The continued focus on privacy is leading to changes in the legal and technology landscape
- 8. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. Privacy changes from key players - Google & Apple The continued focus on privacy is leading to changes in the legal and technology landscape
- 9. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. Privacy changes from key players - Google & Apple The continued focus on privacy is leading to changes in the legal and technology landscape Impact of third-party cookie deprecation • Nearly 85% of the top 1,000 sites have cookies set by a third party, which will be ineffective • Estimated revenue loss of $10B for publishers
- 10. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. Privacy changes from key players - Google & Apple Impact of third-party cookie deprecation • Nearly 85% of the top 1,000 sites have cookies set by a third party, which will be ineffective • Estimated revenue loss of $10B for publishers Impact of Apple’s ATT feature • With App Tracking Transparency (ATT), 63% of US customers will actively opt to be not tracked • Estimated revenue loss of $10B for Facebook in 2022 The continued focus on privacy is leading to changes in the legal and technology landscape *Source: AppsFlyer, Adage, CNBC
- 11. What this means for advertisers
- 12. What this means for advertisers Ineffective targeting Demise of third-party cookies and ATT updates will lead to ineffective targeting. Impact will be different across channels / platforms.
- 13. What this means for advertisers Ineffective targeting Challenges with measurement & attribution Demise of third-party cookies and ATT updates will lead to ineffective targeting. Impact will be different across channels / platforms. Inability to stitch journeys across platforms, channels, devices will make multi-touch attribution models less reliable
- 14. What this means for advertisers Ineffective targeting Challenges with measurement & attribution Demise of third-party cookies and ATT updates will lead to ineffective targeting. Impact will be different across channels / platforms. Inability to stitch journeys across platforms, channels, devices will make multi-touch attribution models less reliable Lower campaign efficiencies, lower advertising ROI, limits scale Other challenges include unable to track reach and frequency, and making fraud detection difficult
- 15. What this means for advertisers Ineffective targeting Challenges with measurement & attribution Demise of third-party cookies and ATT updates will lead to ineffective targeting. Impact will be different across channels / platforms. Inability to stitch journeys across platforms, channels, devices will make multi-touch attribution models less reliable Other challenges include unable to track reach and frequency, and making fraud detection difficult Lower campaign efficiencies, lower advertising ROI, limits scale
- 16. First party data is the only certain solution in an evolving landscape Why first party data?
- 17. There is uncertainty about which industry solution(s) will emerge and how effective they will be in resolving the third-party cookie issue
- 18. All the above solutions are still work-in-progress There is uncertainty about which industry solution(s) will emerge and how effective they will be in resolving the third-party cookie issue Google Privacy Sandbox Trade Desk Unified ID 2.0 Proprietary ID Resolution Solutions
- 19. Why first party data? First party data is the only certain solution in these uncertain circumstances
- 20. Why first party data? Accuracy Relevancy Availability Cost effectiveness First party data is the only certain solution in these uncertain circumstances
- 21. A QUICK POLL: What percentage of your first party data are you leveraging in digital marketing campaigns?
- 22. 1.3 First party vs zero party vs second party vs third party First party vs. second party vs. third party vs. zero party data
- 23. 1.3 First party vs zero party vs second party vs third party First party vs. second party vs. third party vs. zero party data Your own customers’ data Includes users’ • Profile info • Actions • Interests FIRST PARTY DATA
- 24. 1.3 First party vs zero party vs second party vs third party First party vs. second party vs. third party vs. zero party data SECOND PARTY DATA Your own customers’ data Includes users’ • Profile info • Actions • Interests FIRST PARTY DATA Data acquired from a trusted partner • Insured data quality and accuracy. • Relevant data as the source is reliable.
- 25. 1.3 First party vs zero party vs second party vs third party First party vs. second party vs. third party vs. zero party data SECOND PARTY DATA THIRD PARTY DATA Your own customers’ data Includes users’ • Profile info • Actions • Interests FIRST PARTY DATA Data acquired from a trusted partner • Insured data quality and accuracy. • Relevant data as the source is reliable. Data acquired from data aggregator • Aggregators do not collect data directly. • They obtain it from others and compile it into a single dataset.
- 26. 1.3 First party vs zero party vs second party vs third party First party vs. second party vs. third party vs. zero party data SECOND PARTY DATA THIRD PARTY DATA ZERO PARTY DATA Your own customers’ data Includes users’ • Profile info • Actions • Interests FIRST PARTY DATA Data acquired from a trusted partner • Insured data quality and accuracy. • Relevant data as the source is reliable. Data acquired from data aggregator • Aggregators do not collect data directly. • They obtain it from others and compile it into a single dataset. Data customers intentionally and proactively share Subset of first party data. Includes • Preference data • Purchase intentions • PIIs
- 27. Key components for building a strong first-party data strategy 02 01 03 Build a robust first-party data and MarTech infrastructure Effectively leverage first-party data for digital activation Effectively leverage first-party data for measurement and attribution
- 28. Key components for building a strong first-party data strategy 02 01 03 Build a robust first-party data and MarTech infrastructure Effectively leverage first-party data for digital activation Effectively leverage first-party data for measurement and attribution
- 29. Effectively leveraging first party data – Step 1: Segmentation How to effectively leverage first party data?
- 30. Typical challenges we see with leveraging audience strategies in digital marketing campaigns Programmatic Display Cross sell segments Programmatic Display Similar Audience Segments Programmatic Display Remarketing segments Programmatic Display Negative targeting segments
- 31. Typical challenges we see with leveraging audience strategies in digital marketing campaigns Entire customer lists uploaded for cross-sell, thus, no prioritization or personalization of product /offer/ message Programmatic Display Cross sell segments Programmatic Display Similar Audience Segments Programmatic Display Remarketing segments Programmatic Display Negative targeting segments
- 32. Typical challenges we see with leveraging audience strategies in digital marketing campaigns Entire customer lists or all online conversions leveraged for building similar audiences, no prioritization based on profitability Programmatic Display Cross sell segments Programmatic Display Similar Audience Segments Programmatic Display Remarketing segments Programmatic Display Negative targeting segments
- 33. Typical challenges we see with leveraging audience strategies in digital marketing campaigns Simplistic remarketing strategy, segmenting based on users visiting content pages, product pages, conversion pages, etc. Programmatic Display Cross sell segments Programmatic Display Similar Audience Segments Programmatic Display Remarketing segments Programmatic Display Negative targeting segments
- 34. Typical challenges we see with leveraging audience strategies in digital marketing campaigns Negative targeting not leveraged. For instance, in Paid Search spending on customers with login intent Programmatic Display Cross sell segments Programmatic Display Similar Audience Segments Programmatic Display Remarketing segments Programmatic Display Negative targeting segments
- 35. Better segmentation results in better personalization and spend prioritization resulting in marketing effectiveness
- 36. Better segmentation results in better personalization and spend prioritization resulting in marketing effectiveness High value customers with deep relationships High potential customers using as secondary account Mass market customers using as primary bank account Low balance dormant customers Low balance with overdraft fees incurred Profitability 1 2 3 4 6 Gamers* 5 High Profitability (~10%) Low - Medium Profitability (~55%) Unprofitable (~35%) 1 Leverage for lookalike modeling – high priority segment Leverage for lookalike modeling – medium priority segment (bread & butter accounts) Leverage for up-sell / cross-sell Negatively target for all banking products. Identify channels, tactics driving gamers 3 5 6 2 Segmentation of banking customers based on profitability and behavior for building customized marketing tactics *Gamers are individuals who try to open an account just to avail the offer / promotion, and then close the account
- 37. Sample Use Case: Use GMP stack for building segments using web analytics and first party data With the new Google Analytics 4 BigQuery Export, customers can export all of their raw, unsampled events from Google Analytics 4 Properties to BigQuery, and then use a SQL-like syntax to query that data. In BigQuery, they can choose to export their data to an external storage or import external data for the purposes of combining it with their Analytics data. Collect & Analyze Activation Data Source BigQuery Project Cloud Machine Learning Export back to GA GA4 Properties First party data Leverage advanced analytics and ML for building audience segments
- 38. Effectively leveraging first party data – Step 2: Actively building first party data How to effectively leverage first party data?
- 39. Building first/zero party data for effective full funnel marketing Deals / Offers Product Finder Personalized Recommendations Reports / whitepapers Not just building the data, but ensuring you are capturing the data and building custom segments that can be leveraged for personalization and prioritization
- 40. Effectively leveraging first party data – Step 3: Optimizing for profitability How to effectively leverage first party data?
- 41. Optimizing for online conversion events in paid search results in lower ROAS Paid Search Campaign Online Conversion Offline Conversion Revenue / LTV Leads App Approval Purchase (AOV) Sales Loan Funded Returns Revenue / LTV Repeat purchases Feedback to platform KPIs Lag by few weeks to few months or more
- 42. Leverage predictive analytics to score customer based on future revenue potential, at the time of online conversion Profile Attributes Product Attributes Environmental Attributes Predictive Analytics •Demographics •Income, assets, home value •Company size •CRM data for existing customers •Product / category (e.g., home décor, electronics, etc.) •Loan amount •Browser, device •Day of week, time of day •Campaign, themes, etc.
- 43. Leverage predictive analytics to score customer based on future revenue potential, at the time of online conversion Profile Attributes Product Attributes Environmental Attributes Based on our experience, these attributes are typically strong indicators of downstream revenue / profitability Leverage data analytics / data sciences team to run predictive analytics to help build value scores iQuanti’s Value & Intent Scoring Engine (VISE) scores users on value and propensity based on website engagement and application Predictive Analytics •Demographics •Income, assets, home value •Company size •CRM data for existing customers •Product / category (e.g., home décor, electronics, etc.) •Loan amount •Browser, device •Day of week, time of day •Campaign, themes, etc.
- 44. Effectively leveraging first party data – Step 4: Create partnerships to leverage second party data How to effectively leverage first party data?
- 45. Publishers are focusing on building their first party data Publishers are implementing • Pay walls • Registration walls • Cookie walls Major publishers had this in place already. They are also building holistic user profiles based on their data and ID resolution with other first party data. Registration wall Cookie wall Pay wall
- 46. Forbes.com has several offerings for advertisers to reach some key audience segments BrandVoice connects your brand with Forbes’ influential global audiences, through resonant storytelling, expertise and thought leadership. Focused on core segments • Women • Under 30s • Business & Tech Decision Makers • High-Net-Worth Investors & Buyers • Business Owners • CxOs Leverage advertising offerings from large publishers which have strong first- party data based segments Source: Forbes
- 47. Retail media advertising will be the highest growth ad segment in 2022
- 48. Retail media advertising will be the highest growth ad segment in 2022 Source: ‘Retail media networks hit their stride in 2021’, eMarketer
- 49. • Retail media advertising will jump by 31.4% in 2022 to $41.37 billion, marking it out as one of the digital ad segments with the highest growth Retail media advertising will be the highest growth ad segment in 2022 Source: ‘Retail media networks hit their stride in 2021’, eMarketer
- 50. • While Amazon still dominates with 77.7% of US digital retail media spend, companies like Walmart and Instacart are emerging as media networks to watch. Retail media advertising will be the highest growth ad segment in 2022 Source: ‘Retail media networks hit their stride in 2021’, eMarketer
- 51. • New Entrants – Albertsons, Dollar Tree, Gopuff, Lowe’s. Retail media advertising will be the highest growth ad segment in 2022 Source: ‘Retail media networks hit their stride in 2021’, eMarketer
- 52. How to effectively leverage first party data? Effectively leveraging first party data – Step 5: Personalization
- 53. 3.6 Maximize Effectiveness of Owned Media Through Data-Driven Personalization There are different approaches to personalization – 1. Rules Based Personalization 2. AI / Machine Learning Driven Personalization Identify the right approach to personalization based on your scale and maturity AI / Machine Learning Driven Personalization
- 54. 3.6 Maximize Effectiveness of Owned Media Through Data-Driven Personalization There are different approaches to personalization – 1. Rules Based Personalization 2. AI / Machine Learning Driven Personalization Organizations that extensively personalize their message report an ROI in excess of 20 times for every dollar spent* *Source: Advanis survey commissioned by Adobe Identify the right approach to personalization based on your scale and maturity AI / Machine Learning Driven Personalization
- 55. Chase has different sections on the page that are personalized for the user 3.6 Maximize Effectiveness of Owned Media Through Data-Driven Personalization Personalized Elements
- 56. How to effectively leverage first party data? Effectively leveraging first party data – Step 6: Gathering Consent
- 57. Respecting customer’s privacy and being transparent will help gain their trust • Clear privacy policy • Respect opt-out • Only collect data that you need
- 58. Respecting customer’s privacy and being transparent will help gain their trust • Clear privacy policy • Respect opt-out • Only collect data that you need
- 59. Overcoming organizational challenges to build and implement an effective first party data strategy Building a roadmap for implementation
- 60. Challenges organizations face with effectively leveraging first party data for digital marketing Programmatic Display Organizational & data silos Programmatic Display Lack of in-house capabilities Programmatic Display Lack of effective full-funnel activation strategy
- 61. Challenges organizations face with effectively leveraging first party data for digital marketing Programmatic Display Organizational & data silos Programmatic Display Lack of in-house capabilities Programmatic Display Lack of effective full-funnel activation strategy • Online-offline data disconnected • Marketing, data analytics & data infrastructure teams are siloed • Lack of strong overall first party data strategy
- 62. Challenges organizations face with effectively leveraging first party data for digital marketing Programmatic Display Organizational & data silos Programmatic Display Lack of in-house capabilities Programmatic Display Lack of effective full-funnel activation strategy • Advanced analytics and data science capabilities and bandwidth • Fast evolving MarTech landscape – CDPs, ID Resolution, GA4, Data Clean Rooms etc.
- 63. Challenges organizations face with effectively leveraging first party data for digital marketing Programmatic Display Organizational & data silos Programmatic Display Lack of in-house capabilities Programmatic Display Lack of effective full-funnel activation strategy • Brand and acquisition teams disconnected • Not utilizing first party audiences effectively in digital channels • Not optimizing performance towards business KPIs.
- 64. Overcoming challenges and building a roadmap for implementation Building a first party data strategy Investing in a robust infrastructure Building or augmenting capabilities Effectively activating first party data
- 65. Overcoming challenges and building a roadmap for implementation Investing in a robust infrastructure Building or augmenting capabilities Effectively activating first party data Building a first party data strategy Building a first party data strategy • Break organizational and data silos • Come together to build a first party data strategy (including identifying all data sources, data cleaning, mapping across customer journey and opportunities for building data)
- 66. Overcoming challenges and building a roadmap for implementation Building or augmenting capabilities Effectively activating first party data Building a first party data strategy Building a first party data strategy • Onboarding platforms – CDP, CMP, ID Resolution, personalization, GMP etc. • Building a connected infrastructure Investing in a robust infrastructure
- 67. Overcoming challenges and building a roadmap for implementation Effectively activating first party data Building a first party data strategy Building a first party data strategy • Data science, advanced analytics, platform specific (CDP, personalization etc.) capabilities • Augment resources Building or augmenting capabilities Investing in a robust infrastructure
- 68. Overcoming challenges and building a roadmap for implementation Building a first party data strategy Building a first party data strategy • Effective segmentation for prioritization & personalization • Full-funnel approach • Leveraging AI/ML for an advanced strategy (for example, predictive audiences). Effectively activating first party data Investing in a robust infrastructure Building or augmenting capabilities
- 69. Objective: To help organizations maximize the potential of their first party data in digital marketing. First party data audit from iQuanti
- 70. Objective: To help organizations maximize the potential of their first party data in digital marketing. First party data audit from iQuanti Programmatic Display The audit will cover: First Party Data – Self Assessment Respond to 12 questions (5-7 mins) to help iQuanti assess and build a customized report with benchmarks against peer-set and high-level gaps and opportunities. Access iQuanti’s assessment here. • Mapping of first party data availability from various sources • Utilization of data sources and attributes for audience strategy • Mapping of the data flow across all sources • Audit of current technology platforms in use (Example CDPs, personalization platforms, etc,.) and identification of attributes/ opportunities for optimal usage of these platforms • Evaluation of audience activation tactics across all digital channels (segmentation, personalization, etc.)
- 71. Objective: To help organizations maximize the potential of their first party data in digital marketing. First-party data utilization assessment from iQuanti Programmatic Display Deliverables: • Recommendations on the overall 1st party data and infrastructure usage • Recommendations on technology vendors as per use cases • Recommendations on additional data sources and attributes that can be utilized • Recommendations on activation tactics to maximize potential of first party data First Party Data – Self Assessment Respond to 12 questions (5-7 mins) to help iQuanti assess and build a customized report with benchmarks against peer-set and high-level gaps and opportunities. Access iQuanti’s assessment here.
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