5/4/2024
What is the impact of this move? Ads become more expensive due to the increased difficulty of targeting potential customers, resulting in higher costs to achieve the same level of consumer engagement. It also makes it harder to measure success.
If your business advertises online or plans to, it has never been more important to have a first party data strategy. We have put together a series of posts that will help you prepare your business for these changes and get ahead of your competitors.
First-party data refers to the information a company collects directly from its customers and users. This includes data from interactions on a company’s own websites, apps, social media, surveys, customer feedback, and transactions. It is gathered through direct engagement with customers and is owned by the company, ensuring control and privacy compliance.
The decision to phase out third-party cookies marks a significant shift in digital advertising. Third-party cookies have been crucial for tracking user behaviour across different websites, enabling targeted advertising.
Businesses will need to find new methods for collecting and analysing customer data without compromising user privacy.
As the rules change and less external (third party) data is available, businesses are facing hurdles in advertising effectively. First, it is becoming harder to find and target the right customers because the detailed information previously available via third party cookies is reduced.
Your Ads might not reach the people most likely to be interested in them due to limitations in targeting, potentially making advertising more expensive and less effective.
Tracking how ads are doing and understanding customer actions is also becoming more difficult, making it hard to measure success and improve future ads. Furthermore, re-engaging people who have shown interest but haven’t purchased will be tougher without first party data tracking their interests.
Businesses need to find new ways to gather and use first party data to keep their advertising effective.
Our next posts will cover some examples of first party data strategies your business can implement that will enhance the effectiveness of your campaigns. We will also cover the tools google and meta have available to use your first party data in campaigns.
If you would like a review of your existing set-up to ensure you are using your first part data effectively, send us a message or book a free strategy call. We would be happy to help.