With rising concerns over data privacy, data collection, data storage, and looming industry changes, marketers are looking at how they can adequately use first-party data from their clients and brands to drive strong digital advertising campaigns while following privacy laws and regulations. Marketers are faced with an interesting problem: How can they reduce the reliance on third-party data and switch to first-party data, which is collected with trust and transparency by their clients and brands?
To make things more complicated, most marketers are challenged by getting first-party data from their clients and brands.
In a survey of US digital marketers by eMarketer, respondents said they were, on average, tapping into just 47 percent of their company’s first-party data potential. And more than four in 10 respondents said they were tapping into 40 percent or less of their company’s first-party data potential, while one-fourth said they were tapping into more than 60 percent of their first-party data potential. Three in 10 respondents said they were taking advantage of 41 percent to 60 percent of their first-party data.
How do you make your case on the need to leverage first-party data in your digital advertising campaigns? To start, a recent study showed that 70 percent of brands that use 75 percent or more of their customer data exceed their revenue goals. But one statistic isn’t enough. We’ve gathered the resources you’ll need to make your case on why your clients and brands should provide their first-party data based on the current state of CCPA and GDPR.
Even easier: we’ve drafted an email for you to send to clients highlighting the opportunity of first-party data: Jump to “A letter to send to your client”
The first-party data opportunity
It’s important to understand that some brands might think they are lacking the first-party data needed for digital advertising. However, for many brands, the richest set of first-party data is hidden in plain sight. Email and SMS CRM databases include vast amounts of rich, reliable information that is collected through their sales and marketing processes. Since the brand already leverages it for its regular course of business, it makes the data as reliable as possible for accurate targeting and making predictions behavioral trends. It can be comprised of data like:
- Data from CRM
- Data from subscription-based emails
- Data from past purchases
- Data from surveys
- Data from customer feedback
First-party data is unique to each brand, which makes it so valuable. Collectively, this data can provide insight that can be leveraged into your digital advertising campaigns. Some of the everyday use cases for these insights include:
- Audience targeting: Leveraging customer data will help you find the right audiences for your digital advertising campaigns.
- Product and content: Understanding how customers interact with products and content is the key to delivering personalization.
- Campaign optimization: Patterns of customer engagement can be used to optimize your digital advertising campaigns to help you get the right message to each customer on the right channel at the right time.
The state of data (especially first-party data)
Before you ask for first-party data, you need to understand what could be working against your efforts. The passage of CCPA and GDPR has provided some roadblocks for marketers. Data privacy regulations put firm guidelines on what you can and can’t do with data. And those guidelines don’t just apply to the brand, but also extend to the agency.
In short: You’re allowed to do with that data what people could reasonably expect you to do with it, given what you’ve clearly told them you’re going to do with it.
What is the California Consumer Privacy Act?
The state of California recently passed the California Consumer Privacy Act or CCPA. This legislation outlines the rights of California residents to know what personal information is being collected on them, understand how that information is being used, and request the deletion of that information. For more information, you can review its official webpage here.
What is the General Data Protection Regulation?
The European Union’s General Data Protection Regulation (GDPR) went into effect in May 2018. It’s an online privacy Bill of Rights for the EU that provides guidelines and regulations for collecting and processing the data of individuals within the EU. For more information, you can review its official webpage here.
What’s the difference between the CCPA and GDPR?
On the plus side, marketers who have gone through GDPR compliance will have a jumpstart on CCPA requirements, but the two are not identical. Key differences that will impact marketers are:
- GDPR legislation is stricter about what data processing is allowable. It requires acknowledging consent or permission for data processing. In comparison, the CCPA assumes permission and requires the ability to opt-out.
- The disclosure requirements differ between CCPA and GDPR. Under the CCPA, consumers are given the right to know what categories of information have been shared with third parties. Whereas under GDPR, the only stipulation is how data is anonymized and the safe handling of data across borders.
Now what?
The enactment of CCPA and GDPR is creating the need to shift the focus from third-party data to first-party data in digital advertising campaigns. As data providers change their collection methods, there will be reduced access to third-party data. This, in turn, creates pressure on marketers to develop better first-party data acquisition channels.
Use this to your advantage and know the numbers on your side. In Signal’s study of data usage among marketers, more than 80 percent plan to increase their use of first-party data, and they consider it the linchpin of their data-driven marketing strategy for the future.
To comply with CCPA, you have the opportunity to create best practices on how you manage any and all processes that transmit consumer data for your brand and clients. You need to provide clear advantages around reliability and timeliness, as well as ensure them you are abiding by all data privacy rules and regulations.
[Email to your client]
Dear [Client’s First Name],
I am reaching out to start the conversation on how we can access first-party data within our digital advertising campaigns. With the recent changes around data privacy regulations, now would be an ideal time to implement a first-party data strategy as this objective aligns directly to our priorities:
[insert your priorities here]
While the collection of your first-party data might vary, we have found that any of the following data can be used in our digital advertising.
- Data from CRM
- Data from subscription-based emails
- Data from past purchases
- Data from surveys
Also, the usage of first-party data in digital advertising campaigns can have a massive impact on return on investment. A recent study showed that 70 percent of brands that use 75 percent or more of their customer data exceed their revenue goals.
We have put a lot of data protection processes in place to ensure the safe transfer and collection of any of your customer data.
[insert your process here]
I hope you agree that we have a substantial untapped opportunity that will be a big payoff for us!
Thanks for your consideration,
[Your First Name]
