To unpack the pivotal role of first-party data in the post-cookie era, Flow hosted a panel discussion on 12 April 2024 titled ‘Turning Crumbs into Conversations: Leveraging first-party data in a cookieless world’. The event brought together industry experts from data collaboration company Omnisient and media agency Meta Media, who discussed the opportunities and challenges posed by first-party data, providing key insights on this transformative shift in the digital landscape.
Google’s intention to phase-out third-party cookies on Chrome before the end of 2024 marks a significant shift for businesses aiming to reach their target audiences online. Prompting swift adaptation to a changing digital landscape, it has catapulted first-party data into the spotlight.
Understanding The Power Of First-Party Data
At the heart of the discussion was the concept of first-party data, described by Omnisient co-founder Anton Grutzmacher as data that is owned and generated by an entity.
‘First-party data, which is collected directly from customers and audiences via a company’s own channels, is rich in depth and relevance and holds the key to unlocking hyper-targeted marketing opportunities for businesses.’
Meta Media’s Leila Byrne stressed the urgency for companies to future-proof themselves by embracing first-party data but acknowledged the need for comprehensive business adjustments to do so.
Her colleague Andrea Leeuwner added that many companies are on the back foot when it comes to gathering their own first-party data, due to a historic reliance on third-party data, where data is scraped, aggregated, and pulled together from browser cookies.
‘While some of our larger clients have a wealth of first-party data, there are other smaller companies who are yet to start their data preparation journey. Our very first job at an agency level is to help them understand what technology needs to be in place before they get to the advertising stage.’
Byrne added that even for larger companies holding a wealth of first-party data, significant time is needed to be able to execute on it, due to privacy and compliance regulations that must first be met.
And for both smaller and large players, the ability to test, learn from and fully understand the different data sets they are tapping into is equally important, so they can identify how to leverage more precise targeting methodology.
A New Growth Opportunity Through Data Collaboration
According to Flow co-founder, Gil Sperling, the major opportunity in the shift from third-party to first-party data lies in data collaboration.
‘Not everyone can access their own first-party data, but through collaboration, where one brand uses consented first-party data from another brand in a data secure way, companies can optimise their marketing efforts and connect to their ideal audience with precision and purpose to deliver more personalised, impactful advertising.’
Grutzmacher agreed, saying: ‘You need to reach your audiences in the right way and data collaboration and data science makes this possible. We’re bringing the actuaries into the media world.’
Sperling said: ‘Data shows that conversion rates increase by 50% when using first-party data, therein lies enormous opportunity to increase Return on Investment.’
Grutzmacher added: ‘The concept of data collaboration does raise concerns of data security and privacy, because if you’re joining forces to get access to first-party data, it needs to be secure. What’s critical with data collaboration is to ensure there is a separation between the personal data and the data that improves people’s lives. By removing the personal information and anonymising the data, the risks disappear.’
The Role Of Agencies In The New Paradigm
As businesses grapple with the complexities of data management, the role of agencies will become increasingly vital.
Leeuwner emphasised the need for agencies to invest in data management and attribution models, stating: ‘Agencies are not just creating beautiful ads, there is now a lot more science behind it. This means agencies must gear themselves for that and ensure they have smart people who can make smart decisions around using data.’
In conclusion, the panel discussion underscored the transformative potential of first-party data in the cookieless era. ‘By understanding the technology required, embracing data collaboration and ensuring regulatory compliance, companies can leverage first-party data to drive better business results and stay ahead in a rapidly evolving digital landscape,’ said Sperling.
‘The paradigm shift in thinking is happening and represents a massive opportunity for growth, and our job is to show companies how they can thrive.’
FLOW
www.flowliving.com
