In the last installment of our Data Dive blog series, we explored best practices for collecting first-party data. Here we outline the benefits of a strong first-party data asset as the industry prepares for a world without third-party cookies.
The Importance of First-Party Data in a Cookieless World
It’s no secret that first-party data is one of the most valuable assets in a brand’s toolkit, and with the deprecation of third-party cookies on the horizon, building a solid first-party data asset has become a top priority for advertisers. In fact, according to a report from the Interactive Advertising Bureau (IAB), 41% of US data leaders say that the coming changes to third-party cookies will prompt them to increase spending and emphasis on the use of first-party data in 2022.
5 Benefits of a Strong First-Party Data Asset
First-party data is the information that a company collects directly from its customers and prospects. This data is owned by the brand and can be gathered via websites, apps, surveys, social media, or other means. Not only is first-party data the most accurate data asset to leverage, but it also helps marketers better understand their audience’s preferences and build stronger customer relationships over time. Check out more of the benefits of a strong first-party data asset below:
Control – If there’s one thing that we’ve learned over the past two years, it’s that tech giants like Google and Apple have the power to change the trajectory of the digital advertising industry with a single privacy change or browser update. While the use of third-party cookies comes with limitations for marketers, first-party data gives brands control over their marketing destiny. It enables you to target specific audiences in multiple channels, while also decreasing dependency on third-party vendors and walled gardens.
Flexibility – People-based IDs will play a large role in helping advertisers connect to platforms and partners once third-party cookies are phased out. For brands looking to test the new IDs entering the market, a foundation of opted-in, first-party data will be key. By owning a first-party data set, you can test multiple addressable marketing campaigns and monitor performance across channels. It enables the flexibility to test, target, and repeat without relying on third-party measurement.
Effectiveness – Third-party data is often modeled or inferred, leading to mismatched audiences and messaging. With first-party data collected straight from the source, you can increase efficiency and ROAS through true cross-channel optimization and attribution. The results speak for themselves – a study from Boston Consulting Group and Google found that brands using first-party data for key marketing functions achieved up to a 2.9X revenue uplift (compared to companies that didn’t) and a 1.5X increase in cost savings.
Connection – First-party data is the product of a direct relationship between brands and consumers. Protecting the value of this first-party data asset requires transparency and trust. In a recent Fluent Pulse survey we found that despite privacy concerns, 36% of US consumers believe that the benefits of sharing their information with a brand outweigh the risks. By taking full ownership of the relationship and offering a clear value exchange, you can start to build trust at key moments along the customer journey.
Personalization – According to a report from Salesforce, 66% of consumers expect companies to understand their unique needs, with another 52% expecting offers to always be personalized. First-party data enables brands to improve the consumer experience by helping them deliver more relevant offers and messaging based on consumers’ self-reported preferences. The more a brand knows about it’s best customers, the easier it becomes to anticipate their needs and create opportunities for engagement.
Partner with Fluent to Build Your First-Party Data Asset
Creating a robust first-party data set will require time and resources, but it is well worth the investment. The ability to organize and activate first-party data will give advertisers a competitive edge as they plan to facilitate targeting and attribution in a world without third-party cookies. The good news for marketers? Fluent can help!
Engaging with millions of consumers monthly, we leverage our survey capabilities to help advertisers cultivate first-party, permissioned audiences that are customizable by attribute and addressable across programmatic, connected TV, email, direct mail, SMS, search, and social. To learn more about how you can partner with Fluent to build your first-party data asset, connect with us here.