What Marketers Need To Prepare For In 2023?
The phase-out of third-party cookies has deep implications on tracking and targeting in marketing. It requires a proactive shift in the way marketers approach Ad targeting. This also requires a revision in the tools and techniques used by marketers to deliver targeted content to consumers.
A good first step is for marketers to get an understanding of the role third-party cookies play in their campaigns today. Do you use them to retarget website visitors? Do they help drive decisions about which content to send? Are you leveraging them to track performance across marketing campaigns and channels?
Digital Marketing Maturity – The New Normal
In a recent BCG study, nine of ten marketers say that first-party data is important but only little to few marketers use the full potential of first-party data. According to the report, while first-party data is data that brands collect directly, it is not data that they own. Ownership is in the hands of consumers, and the data comes with restrictions that require explicit permission from consumers on how it can be used.
Many consumers are happy to have their data used in ways that benefit them—if they understand what that means—while others are cautious. Regulators have also stepped in with new rules to protect consumers’ data rights. The major web browsers too are moving towards more user control of data that is collected from the consumers. Responsibility and best data practices have become prerequisites in data-driven marketing.
The report highlights the two core values that brands will have to adopt. Firstly, transparency – the ability to give users complete control to consent to sharing their data, while also being upfront on the reasons for collecting this data, potential benefits to the brand after having collected the data. And second, value – the incentives that come with consenting, which is a better user experience.
Digitally mature brands go even further in implementing data best practices. They develop both an internal and external code of data responsibility rooted in good conduct and stewardship.
The Absolute Need for First-Party Data Strategy
A survey by Treasure Data delves into the impact of rising costs on consumers, how inflation is changing spending habits, and what marketers are doing in response. The survey confirms businesses and consumers alike are being squeezed by tightening budgets, which are forcing them to reevaluate their priorities. Seven in 10 (69%) marketers have already been forced to cut budgets due to rising business costs, and many are bracing for further reductions, particularly within larger businesses. Additionally, the report states that marketers admit they waste 38% of their budgets due to poor optimization of customer data, which is a significant loss of almost $6 million based on the average marketing budget over the past six months being over $15 million. The majority of marketers are navigating costly data wastage and considerable budget cuts in efforts to reach target customers.
In an exclusive interview with Exchange Wire, Sandy Ghuman, Managing Director at Silverbullet highlights how publishers are adapting to first-party data. Also, how brands can navigate the present economic climate and what makes strategy imperative. She says, “Today (and tomorrow) gaining trust and delivering a true value exchange is vital for brands of all shapes and sizes, and with online regulations becoming stronger and discussions of data ethics more prevalent, privacy must become a priority as we close out 2022 and step into 2023 and beyond.” Further elaborating, she says that in the current economic climate, it is crucial for marketers to remain relevant while capturing audiences’ attention and trust.
She adds saying, “Strategy will prove critical in the privacy-first era. Brands and agencies must adhere to continuously changing timescales and regulations. And, a large part of safeguarding for the unknown, is by building a future-proofed data strategy centered around privacy. We know that ad tech is continuously evolving, and that understanding is crucial to ultimately drive that better experience for the customer and drive better performance.”
With all this fragmentation, marketers are constantly challenged to identify the right channels to reach their target audiences and then figure out the best ways to leverage each one with the right first-party data strategy.