First-party data offers solution for declining Advertising performance
Published: February 7th, 2024
Traditionally, people want ads that actually make sense and are helpful. But in 2024, they’re also shouting from the rooftops, asking for more transparency about how their online data is handled and want to call the shots on what ads they see online. Thanks to regulations like the EU’s GDPR, California’s CCPA, and Brazil’s LGPD, people now have more control over who gets to use their data. And guess what? Our trusty web browsers and mobile platforms are now saying “no thanks” to those sneaky third-party cookies and mobile IDs that have been tracking us around the internet.
For marketers and publishers, it’s like being stuck between a rock and a hard place: how do you grow your business with personalized ads that people engage with while still respecting their privacy wishes?
Well, here’s the secret sauce—get cozy with first-party data! 🎉
First-Party Data fuels Personalization
At its heart, first-party data is all about the direct connection between people and businesses. Think about those moments when you buy something, sign up for an account, or join a subscription—you’re sharing info with the expectation that it’ll be handled responsibly. As you keep coming back to your favorite spots, they get to know you better, and that helps them make your experience even better.
Turns out, consumers actually like it when businesses use their info to tailor things to their liking. According to this survey, about 63% of consumers see personalized service as the norm. And get this: more than half of the 3,000 folks surveyed were cool with sharing personal details if it meant getting customized experiences. That number skyrockets when you look at millennials and Gen Zers, hitting 70% and 72%, respectively.
Offer Value and get more Data
Getting to know your customers happens naturally with each interaction. But you can also make clever moves to gather the info you need for top-notch experiences or stellar service.
For instance, think about loyalty programs that dish out exclusive content, tailor-made recommendations, and sweet rewards. Or maybe it’s as simple as tossing out a coupon or special offer in exchange for an email or phone number.
The key to getting more visitors to opt-in is to ensure there is:
- Visibility: They don’t hide banners. Instead, they design the ask with a neat user interface, making it easy for users to spot and understand. Plus, they offer control, allowing users to withdraw permission if they want.
- Candor: They’re upfront about why they’re collecting data and how they plan to use it. No hidden agendas here—they lay it all out on the table.
- Value: They make sure you know what’s in it for you. Sharing data isn’t just about them—it’s about enhancing your experience as a customer.
With Bread & Butter we give you every tool to adhere to these principles:
- Opt-out functionality: Every visitor can opt-out at any time after their initial opt-in built into every tool. Stay compliant without having to focus on it.
- Clear Policies: There are built in privacy policies and terms of service visible and present in each one of our opt-in tools. Use ours, or set it to direct to your own.
- Incentivize Opt-ins: Newsletter, contests, gated content, promotional codes. Whatever you want to do to convince visitors to disclose their identity, we have a pre-built widget to support it
Boost advertising performance
Most importantly, investing in a first-party data strategy comes with better performance. A study by Boston Consulting Group, found that marketers using all their first-party data can bring in twice the revenue from a single ad, message, or outreach.
First-party data isn’t just a buzzword; it’s gold for ad moneymaking. Check out Google’s publisher privacy playbook where they outline how collecting audience data lets you serve up personalized digital experiences, which in turn leads to more profitable outcomes.
In the playbook, Karthic Bala, Condé Nast’s chief data officer, had this to say: “First-party data enables us to improve customer experiences across our properties by increasing advertising performance and providing content recommendations, while respecting consumer opt-outs. The virtuous cycle of personalization has, in turn, led to higher engagement and additional first-party data assets, while giving our customers what they want and building trust.” The overall result from this push? A return of over 3:1 on every ad dollar spent.
Everyone loves ads that matter – customers, brands, and publishers counting the cash. But today, businesses need to be extra careful about personalization. It’s all about respecting privacy choices while still giving people what they want.