We all know that the end of ad tech data is near.
But most people aren’t in a hurry to do anything about it.
These are the latest findings from the Internet Advertising Bureau’s 2024 State of Data report, How the Digital Advertising Industry is Adapting to a Privacy-by-Design Ecosystem (subscription required).
According to the IAB, 94% of survey participants said they expect Google Chrome to eventually eliminate third-party cookies. But only 42% of people believe Google will live up to its word and end them by the end of the year.
It’s like that scene from the movie “Don’t Look Up.” Dr. Randall Mindy (Leonardo DiCaprio) and Dr. Kate DiBiaski (Jennifer Lawrence) try to convince the President of the United States (Meryl Streep) that he has a 100% chance of a comet hitting Earth. . “99.78% to be exact,” Randall says. The president replied, “Let’s say 70%. Let’s move on… you know… let’s just sit back and evaluate.”
what should you do? Will this comet caused by the end of third-party cookies, pending privacy legislation, and the inability to obtain first-party data disrupt the world of digital ad tech? We asked Robert Rose, chief strategic advisor at CMI. Watch or read his perspective.
Marketers listen to third-party data but don’t act on it
Every few weeks, you’ll receive a reminder about privacy and data. Some are underreported, like new laws in New Jersey and New Hampshire, and a proposed law in Maine could be the strictest in the nation. Google keeps rolling out new updates to remove third-party cookies in its Chrome browser, and even Microsoft is cracking down on its little-used Edge browser.
But as the IAB reports, even though marketers and others know all about what’s going on, fewer than half think it will happen this year.
If you don’t want to actively participate and experiment with the Google Privacy Sandbox initiative, you’re not alone. According to IAB research, 80% of marketers know this, but less than 60% are using it or plan to use it this year.
What gives? Why aren’t brands, agencies, and publishers doing more now to prepare for the inevitable day when ads and other content can no longer be tracked across websites and platforms as they once did?
The IAB report suggests some things, but does not elaborate.
Missing the essentials of data collection and analysis
First, marketers still assume that first-party data only applies to contact information, devices used, and transactions. The IAB study found that consumer interests and preferences ranked last in first-party data collected this year. But interests and preferences are the most important thing to know. As already mentioned, choose between collecting e-mail addresses or knowing the visitor’s intentions and desires. I choose my intentions and desires each time.
Second, the IAB study also shows a lack of measurement power. It found that 76% of brands and agencies are currently investing or planning to invest in new forms of multi-touch attribution systems due to privacy laws and what they call “signal loss.” I found out that Given that these brands are just starting to invest or are planning to invest, they don’t currently have measurement tools that make sense.
First-party audience data helps you understand the impact of your content, marketing, and customer experience on your audience. However, Google Analytics, marketing automation, and other analytical tools measure consumption. Get detailed information on which content is being consumed and how much. But we don’t know how what the brand wants from the customer next will or will impact the customer.
Research shows marketers are now reexamining their technology stacks to confirm this evolution. Still, the top four platforms they mentioned are his website analysis tools. That’s scary. I’m a fan of customer data platforms (CDPs), which seem to be the most exciting data tool that no one is implementing.
Companies seem to be looking for all ways to evolve without having to completely overhaul their existing content and marketing operations.
Tackling difficult but important challenges
The IAB report says the majority of companies train staff on data privacy, have teams dedicated to business transformation, and leverage external expertise. That’s a positive sign. However, the key to success is to do it quickly.
It’s a big lift. Connecting your owned media properties (websites, newsletters, blogs, physical and digital events) to a single, first-party data-rich source that provides insights into preferences, intent, impact, and success. Not for the faint of heart. it takes time. It requires persistence and a lot of patience.
But this much can be said. If you do it right, it’s worth all the sweat and capital you put into it.
It’s like the comet in the movie “Don’t Look Up.” Expect inefficiencies, loss of data signals, and increased complexity for contacting individuals in different countries and states. It’s not a “maybe” thing. That means it’s already here.
Marketing and content teams must prioritize the right use of their first-party data in the coming months and quarters.
It’s great and refreshing to see the IAB stepping up on this and writing: Leaders. ”
I couldn’t agree more. It’s also just marketing.
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Cover image: Joseph Kalinowski/Content Marketing Institute