In today's digital world, data is king.
It is a driving force that allows businesses to understand their audience, target them more effectively, and create personalised experiences that boost business results. It can most definitely position brands to thrive, however, not all data is created equal!
Third-party cookies have been subject to increasing scrutiny and regulation due to concerns over privacy and data protection. Most web browsers and ad-blocking software now block or limit the use of third-party cookies, with Google announcing it will remove third party cookies in its Chrome browsers in 2024.
First-party data on the other hand is not under the same level of scrutiny, and it is generally accepted that it can deliver incredible value. First-party data refers to information that a brand collects directly from its customers or website visitors with the appropriate consent sort and given. This can include demographic data, purchase history, website behaviour and more.
This change to the digital marketing landscape is forcing an entire rethink of marketing strategies for advertisers using digital media channels but carsales’ General Manager, Media - Product and Technology, Stephen Kyefulumya, hasn’t been waiting around to see what will happen and shared the carsales journey at the Adobe Summit 2023 in Las Vegas last week.
So, can a business thrive without a first-party data strategy? The answer is, not as much as those that do have a first-party data strategy.
Kyefulumya explained exactly how a business can thrive with a strong first-party data strategy: which cannot omit re-aligning tech, people and process to deliver customer engagement based on trust and first-class personalisation.
A key to carsales’s overarching media strategy which was unveiled in market at its openhouse in October 2022 is to use the power of their first-party data, future proofing their rich targeting capability as well as allowing advertisers to reach people not devices.
“Brands need to consider first above all else how to build trust with their consumers”, said Kyefulumya.
“Trust is now a buzzword because of changes in the industry, but we’ve been advocating trust for a long time, and one of the main ways to achieve it is to deliver a genuine value exchange. And you cannot get genuine value exchange unless you understand your audience."
He added that the nature of running a marketplace business means it is built on understanding the journey to ownership and has allowed carsales to develop strong bonds with their customers over time.
“That first-party data set that we’ve built, and the trust we already have, means we can build personalisation at scale.”
“A core part of the strategy must be to have a clear plan on how to collect, organise, make sense of the data, as well as being able to activate data in real time. It also means prioritising data privacy and transparency. You need to have the right technology in place to achieve this”, said Kyefulumya.
carsales is the first Australian-based marketplace to partner and onboard Adobe’s Real-Time Customer Data Platform (RTCDP), to achieve market leading personalisation for our users and media customers alike.
Another key component of a successful first-party data strategy is integrating data across all channels and departments. To achieve this, you need to align people so they can easily extract insight and have robust operating rhythm to be able to action the insight, building a better customer experience or a more effective marketing campaign.
carsales match offers marketers the ability to use their first-party data to precisely target their known customers in a privacy compliant way.
These elements lead to higher engagement and loyalty, increase conversions and ultimately better overall business performance.
So, what are some alternative strategies for building a successful brand without your own first-party data?
One approach is to focus on creating exceptional customer experiences that drive engagement and advocacy. By prioritising customer satisfaction and word-of-mouth marketing, brands can attract new customers and retain existing ones, even without a sophisticated data strategy.
Another strategy is to partner with companies that have robust first-party data sets. By leveraging the insights of these partners, brands can still benefit from the power of data-driven marketing without having to collect and manage the data themselves.
carsales mediahouse is making these insights available in the planning tool of their newly created media buying platform; Ignition.
Finally, brands can of course go back to contextual targeting to deliver relevant messages to their audience. Context can be challenging too if you are not working with brands that create, publish and classify their own content. It may not offer the same level of precision as first-party data.
So, can a brand thrive without a first-party data strategy? The answer is technically yes, however, it's becoming increasingly difficult to do so. With the rise of digital marketing, e-commerce, and customer-centric business models, first-party data is essential for brands that want to succeed in today's landscape and the evolution to experience-led growth.
Brands that don't have a first-party data strategy may not have access to insights they need to make informed decisions. They may be able to survive for a while, but eventually, they will fall behind their competitors who are leveraging first-party data to drive better business outcomes.
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