This article was based on the interview with Gruia Pitigoni-Aron from The Trade Desk by Greg Kihlström, MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
One key aspect of good data is investing in first-party data. First-party data refers to customer information collected directly from your own website, app, or other owned channels. It includes data such as customer demographics, behaviors, preferences, and purchase history. Investing in first-party data allows advertisers to have a deeper understanding of their customers and enables them to create more targeted and personalized advertising campaigns.
There are several challenges that prevent brands from having good data and showing the right ads to the right people. One major challenge is the increasing regulatory pressure and changes in the advertising environment. For example, Google is working towards cookie deprecation, and Apple has already removed Signal. These changes limit the ability of brands to rely on third-party data and require them to take control of their own data.
To overcome these challenges, every advertiser needs to have an identity strategy. This involves investing in identity and authentication solutions to collect and leverage first-party data. Advertisers should not settle for non-data driven advertising and should prioritize investing in data and identity solutions for first-party data. This type of data allows brands to make the best use of the data collected through direct relationships with consumers.
When collecting data, it is important for it to be deterministic and transparent. Advertisers should know how the data was collected and ensure that it was done with the right consent. This ensures that the data is reliable and can be effectively used in advertising campaigns.
However, not all brands may have access to first-party data. In such cases, there is an opportunity to be holistic and think outside the box. Brands can leverage retail data or other relevant data sources to target their desired audience. For example, an insurance company could use Home Depot data to find new home buyers as potential customers. This requires thinking about consumer experiences and signals, rather than just focusing on sales channels.
Implementing a first-party data strategy may require a mindset shift for organizations. Some companies may be starting from scratch, while others may need to improve their existing strategies. It is important for organizations to understand their identity and authentication strategies and consider industry solutions that are available. Solutions like UID2 can provide authenticated, consented, transparent, and safe data for advertisers to leverage.
Investing in first-party data is crucial for advertisers to overcome the challenges of data-driven advertising. It allows brands to have a deeper understanding of their customers, deliver personalized ads, and make data-driven decisions for better campaign performance. With the right strategies and solutions, advertisers can harness the power of first-party data to create effective and impactful advertising campaigns.