Who's on First? Party Data Efficiency in the Wake of the Cookie's Demise

By Josch Chodakowsky

As the news of the cookie's so-called demise has spread far and wide, there have been a number of potential strategies laid out for marketers looking to navigate this brave new world. While further leveraging influencers or re-designing loyalty programs have emerged as two possibilities, we've also witnessed a natural tendency to focus on party data above all.

This makes sense, as it's the "death" of third-party data (in reality, privacy regulation barriers) that prompted a re-examination of how to properly use consumer data in the first place. Enter (or, re-enter, as it may be) first- and zero-party data, best explained by this chart from Cheetah Digital:

By relying more on data that consumers willingly supply, marketers can both adhere to privacy regulations and gain consumer trust in how and what data brands are collecting and utilizing.

To learn more about how to effectively utilize different types of party data, see the resources below.

The Difference Between First-Party, Second-Party and Third-Party Data. Treasure Data, March 2022.
We create great customer experiences when we understand our customers, and we understand our customers with the help of data. There are several types of customer and audience data, each with its own set of benefits and challenges that guide our strategies. And while all types of customer data help us build better experiences to some degree, they are not all created equal. Let's look at the types of data you can use and how they differ from each other.

What You Need to Know About the Data Party Game. Content Marketing Institute, November 2020
Owned media (websites, content hubs, and commerce platforms) are core pieces of a digital strategy. But confusion abounds over their ability to collect audience data – what can be acquired, how it's governed, and how it can be used in content strategies. Add the GDPR and CCPA regulations, plus Google's plan to phase out third-party cookies, Apple's new bar for data privacy, and other data-related changes, and you've ended up in a date mire. And now another confusing concept has popped up: zero-party data.

To help marketers understand zero-party data's place and purpose, the Content Marketing Institute described what zero-party data is, why it matters, and the role it might play in the future of marketing.

We're All Stuck in the Privacy and Brand Safety Tangle. CMS Wire, November 2020
The collective digital ecosystem, and the ongoing privacy and brand safety tangle, has got marketers "stuck." And the only way to get unstuck is to acknowledge that we got here because of insufficient data collection practices and disrespecting user data ownership rights. The associated brand safety issues that stem from the broken data collection dynamics are just the latest symptoms of what ails us. But we can heal ourselves if we move from third-party data to zero- and first-party data. The first step to getting unstuck is to understand the different types of data that exist, and this article from CMS Wire breaks down the different types.

Six Key Enablers to Help Unleash Your First-Party Data Potential. Think with Google, November 2020
Earlier this year, Think with Google explored how first-party data can help brands improve their digital marketing capabilities, and connect with consumers as they adapt to a changing world. According to the Boston Consulting Group, the benefits of using first-party data are clear: incremental revenue from a single ad placement, communication, or outreach is up to twice as high as that of companies with limited data integration.

They also typically perform 1.5 times better in cost efficiency metrics. Yet despite these potential gains, just 1 percent of companies actually use first-party data to deliver a fully cross-channel experience for customers. There are challenges associated with achieving this, of course — such as access to consumer data, and concerns around data sensitivity — but tackling these can bring clear and notable benefits, and this article tells you how.

What Advertisers and Publishers Need to Know to Survive the Shifting Digital Landscape. Marketing Dive, November 2020
Dun & Bradstreet's Gino Palozzi authors this guest post on Marketing Dive, writing that, "the digital advertising industry has found itself grappling with privacy regulations, pending elimination of third-party cookies, and a massive shift to remote work, which is impacting digital tracing. The changing environment has left advertisers seeking the next holy grail of targeting. This opens a door for publishers, who have a unique opportunity to reposition themselves and monetize their digital audience. Publishers who were disintermediated by digital transformation of their industry can take back control and become the preferred and primary provider for targeted advertising, but they need to start preparing now for the impending disruption."




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Josch Chodakowsky is a senior manager of research and innovation at ANA.

The views and opinions expressed in Marketing Futures Pulse are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.

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