Using first party data in digital advertising | Digital Dot

Using first party data in digital advertising

How many times were you looking for something on the Internet only to find ads related to it popping up all over the place? We bet more times than you can count. And no, this is not just a crazy coincidence. In all truth, you are under constant surveillance while browsing the web. You can thank the infamous third-party cookies for this, as they have been used to track user activity for as long as we can remember. However, that may be about to change, as Google announced that they would no longer permit their use. But what does that mean for your business and its marketing moving forward? Well, not much. But it does mean you’ll have to make slight changes. Digital Dot will let you in on a little secret — they may just revolve around using first party data in digital advertising.

What is first-party data?

“First-Party Data” refers to information a company has gathered directly from its audience, website tracking tools, or customers’ web or mobile actions. Businesses typically use their websites, customer relationship management systems, customer-generated content (CGC), and surveys as primary sources for collecting valuable data. This data helps them understand how users engage with the site or app, how long they spend on them, where they are located, and what piques their interest. First-party data, sometimes called 1P data, when used appropriately, has the potential to reduce the need for secondary or third-party data or even eliminate it.

A visual representation of making use of digital data.
First-party data refers to data collected first-hand.

Why would businesses want to use first party data in digital advertising?

Collecting data will prove more challenging for marketers if third-party cookies become obsolete. Nevertheless, as social media marketing solutions NYC experts, we reassure you that their demise won’t be yours. In fact, the improved personalization made possible by first-party data will simplify everything. From targeting the right people to growing your business. Exponentially!

With that in mind, if you are wondering how to use customer-generated content, but more importantly, first-party data in general, here’s how such data can help your business reach the desired level of success and then some!

#1 More precise targeting

The goal of every business owner is to get as high a return on investment as possible, which is possible through improved targeting. Just picture a world in which cookie-based tactics have eliminated all unnecessary ads on your screen, leading to better addressability. This, in turn, means more precise, timely, and pertinent business communications. Now, let’s imagine a customer conducting a mobile search for a pair of shoes before purchasing their laptop. If that same customer were to keep seeing the same shoes on their mobile device even after being converted, that would be nothing but a waste of targeted ads and, therefore, money. But if we were to switch to first-party data completely, this would no longer be happening.

#2 1P data helps trace the customer journey

Thanks to 1P data, we have insight into more information than ever before. For instance, we can see the customer journey from discovery to purchase and, therefore, gain a better understanding of what works and what, perhaps, doesn’t. Suppose customers appear to purchase mainly from their computers, even after seeing products/services on their smartphones or social media sites like Facebook or Instagram. In that case, it could indicate a potential problem. However, by analyzing collected data, our New York City SEO expert and digital marketing team can better assess the content distributed through the channels and determine if there is a need for collective improvement.

#3 Better analysis

Customers leave a trail of breadcrumbs every time they browse the web. This same trail allows businesses to see how they stumbled upon them and what platforms they used. Now, let’s say a prospect has found the brand on Facebook. Thanks to an ad set up by PPC agency NYC businesses trust, they clicked on the content and landed on the company website, resulting in a purchase. Alternatively, they may have been looking for information about something on Google, found the ad on YouTube, watched the video, and then placed an order. In the case of both of these customers, their trials can tell us more about their journey and interests, which, in turn, can help organizations develop a business plan.

A person comparing data shown on the laptop screen.
Businesses can use first party data in digital advertising for a more insightful analysis.

But what good is a business plan if you don’t plan on using multiple channels to show your ads? After all, how can you expect to see the whole picture if you are advertising solely on one platform? Instead, the omnichannel approach is the one to take if the most efficient use of first-party data in digital advertising is the goal. By studying multiple channels, analysts and marketers can look at the channels with the most traffic and learn how and why customers buy things. Integrating data will further give a better perspective. A perspective that can be used to make and test new strategies.

#4 First-party data allows businesses to experiment

The primary benefit of first-party data is that it has not been subjected to any third-party testing or utilized by competing businesses. It’s a chance to reach a new demographic or explore uncharted territory. There is a lot of rivalry for third-party data since everyone, from established businesses to startups, relies on it. On the other hand, thanks to first-party data, marketing can be tailored to each customer, and new approaches may be piloted with a select audience before being sent out more broadly. As a result, spending money on marketing is no longer a shot in the dark but rather a well-calculated strategic decision with firm deadlines and objectives.

Marketing strategy written on a blackboard.
Thanks to 1P data, it’s possible to develop new marketing strategies.

To use first party data in digital advertising or not?

While it may come as a surprise or a disappointment, the end of third-party cookies is good. Now, metaphorically speaking, you may think of first-party data as a film that has already been shot but has yet to be published. You have attended the first secret screening and, thus, have knowledge not many people have. Now, it’s up to you to use the inside, or rather, first party data in digital advertising, and its so far unrealized potential. The best thing is that it won’t cost you a dime more than using third-party data would. At the same time, it is spot-on and may help you develop strategies that will only benefit you.


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