First-party Data: Powering The Future of Privacy
#BlogPost
Published: 23 September, 2022
For more than 25 years, third-party cookies have been a pillar of digital advertising. Without cookies, the advertising business, which has grown because data is easy to get, would be at risk. Uncertainty outlines the path ahead. If your digital marketing depends on third-party cookies or ad IDs, or even just uses them, you need to search for a more lasting solution.
Your first-party data will become one of your most valuable assets as we move toward a future where privacy comes first. First-party data gives advertisers insights into what customers actually need from their brands and products, enabling them to do their job more successfully. It's a great way to build a stronger relationship with your customers and give them a more tailored experience.
First-party data: Why does it matter for advertisers?
In contrast to second- or third-party data, first-party data is information you get directly from your current clients. Because of this, first-party data is a good way to make retargeting ads that work well for your current customers.
First-party data gives you essential knowledge about your current clients. By using this information, you can make sure that your retargeting ad campaigns work with great effectiveness. Also, it lets you focus your marketing efforts on the customers who are worth the most over time, which makes your advertising campaigns more profitable.
To use first-party data, you don't have to be an industry titan. Collecting first-party data is now simpler than ever thanks to a wide range of technologies. Of course, gathering customer data is just half the battle; the next, crucial step in maximizing the advantages of first-party data is efficiently structuring your data and putting it to use.
Benefits of first-party data strategy
GREATER ROI WITH CUSTOMER RETENTION
Third-party data may be useful for prospecting new customers. But what if you're promoting your brand to existing customers or to people who have previously interacted with your company?
Customer retention is less expensive and more profitable than acquiring new ones. In comparison to new customers, returning customers spend 67% more. So, it makes sense to target the customers who are most likely to convert and spend more. Additionally, these customers have provided you with their first-party data since they have already engaged with your brand. Collecting first-party data from your current client base is often easier, more efficient, and less expensive.
THE RISE OF BRAND LOYALTY
Customers who provide you with first-party data are a significant indicator of their brand loyalty. Why would they share their data, after all, if they weren't going to connect with your brand again?
First-party data helps in strengthening current client engagement. While other brands must obtain consumer permission before sharing their customers' data. A customer has chosen to do business with your company, and if you want to get their first-party data, this relationship should be beneficial for both of you.
OWNING THE DATA AND STAYING INDEPENDENT
First-party data is the most reliable type of data because it is specific to your company, as opposed to third-party data, which can be sold to anybody who requests it. You own the data and collect it from customers with their permission, meaning you will never lose access to it. Therefore, it makes sense to invest in first-party data.
First-party data has many advantages over third-party data. For one, it can't be taken away from you, so you don't have to worry about losing it. Second, you own the data, so you can transfer it between your media channels, which is a major advantage. And third, once you have the data, you can use it however you want, which is not always possible with second- or third-party data.
Final Thoughts
With the number of data breaches, new regulations, and increasing consumer awareness, first-party data has become one of the most valuable assets in the digital world. Many businesses are still in the dark about its value, but as they realize the true potential of first-party data, they will begin to invest more in it.
In fact, many companies are implementing first-party data management to do just that. Your first-party data will become one of your most valuable assets as we move toward a future where privacy is at the forefront of everything. There are a number of ways you can use first-party data to better understand your consumers, and we believe that the future of privacy will come down to those who use their first-party data well.
Want to explore essential tactics that can help your company successfully implement cookieless strategies? Check out the free Ultimate Guide to Retargeting Ads.