Digital advertising is constantly evolving and transforming, but the phasing out of third-party cookies represents a key turning point in its history. We are entering a new chapter of connecting with audiences, where activities will be based on the use of first-party data that companies obtain directly from their audiences on their websites or mobile apps. This marks the beginning of a new era in the buying of advertising space in digital media, which will require a deeper understanding and effective use of this valuable information for more targeted and personalised advertising.
Last year at that time, Adobe published the results of a study which concluded that the end of third-party cookies will harm companies unprepared for the transformation of the advertising and marketing industry. The results showed that reliance on third-party cookies will prove to be a vulnerability for brands, with more than two-thirds (71%) of survey respondents expecting the end of third-party cookies to harm their business, 10% believing it will “bury” their company, 21% expecting significant harm and 39% predicting a moderately negative impact.
iPROM believes that first-party data is driving the future of advertising, giving businesses insights into their customers’ buying habits and allowing them to market based on purchase intent, personalise advertising and target their own audiences more accurately.
First-party data-driven media buying is seen as the future of digital advertising
As the role and importance of first-party data grows, we are finally entering a new era of digital media buying and turning a new page in the history of the industry’s development.
Media buying based on first-party data is already allowing companies to target their desired audiences with greater precision, buy ad space more efficiently, and consequently, manage their media budgets better. In this way, companies can gain better insights into which media channels and platforms are the most effective when it comes to achieving their advertising objectives.
Artificial intelligence as a compass for effective advertising strategies
The integration of artificial intelligence in the analysis of first-party data is becoming a fundamental tool for the development of advanced marketing and advertising strategies and the buying of advertising space in digital media based on first-party data. With the ability to analyse large volumes of data in real time, it already provides a better understanding of customer buying behaviour and the effectiveness of advertising campaigns across different digital platforms and media.
With deep insights and predictive capabilities, the use of AI can also help companies make data-driven decisions and improve their ability to adapt and respond to a dynamic market environment.
Data management in a fragmented digital media landscape
In a fragmented digital media landscape, where multiple platforms and media outlets compete for attribution, performance credit and advertising assets, building their own first-party data warehouses is a key solution for companies and organisations.
After third-party cookies will be phased out, having their own, independent data management platforms will be the only way for companies to retain control when it comes to understanding the effectiveness of different advertising channels, platforms and media. Private data warehouses will also be the only source of companies’ own first-party data used to implement media buying.
Compliance with legal requirements and data protection
Independent first-party data warehouses not only ensure that companies comply with increasingly stringent legal requirements on the protection of personal data, but also serve as a strategic tool to safeguard key business information from competitors and other stakeholders. In an environment where data protection is constantly being under fire, data protection and regulatory compliance are priorities.
iPROM’s business partners are ready for the changes ahead today and are already harnessing the power of first-party data to carry out advertising campaigns in digital media. If you are interested in learning more, I invite you to contact me at leon.brencic@iprom.si. Together we will explore the possibilities and find a tailored ad-tech solution for your needs in the new era of marketing and advertising in digital media.