The importance of first-party data in digital advertising is growing as marketers become increasingly aware of the potential biases and limitations of relying on third-party data. First-party data provides businesses with a more accurate picture of their audiences, allowing them to better understand their customers’ needs and interests before launching campaigns. In addition to improving targeting accuracy, this also reduces the risk of bias in advertising. How? I introduce some examples in this blog.
Understanding customer behavior with first-party vs. third-party data
First-party data is defined as information collected directly from customers, such as explicit consent, registration records and online surveys. This data is generally more reliable than third-party datasets, which are often aggregated from multiple sources. For example, first-party data might show that a specific segment of consumers has an interest in baby products, which is something that third-party data might have missed.
For instance; the traditional marketing assumptions about target customers and their preferences are no longer relevant given the changing family dynamics in today’s world. With more single-sex couples, divorced parents and childless adults, our acquisition strategies need to reflect this shift away from a nuclear family ideal. Additionally, women have become empowered to make choices beyond those of being stay-at-home or working mothers, so we must account for these changes as well when considering our ideal customer and ad targeting.
Identifying and correcting our unconscious biases can provide an important missing piece to explaining societal change. By recognizing how these influences shape ad targeting, we are better equipped to create messages that reach their desired audiences more equitably. From gender bias to ageism or racism, all forms of prejudice need to be carefully considering when devising targeted campaigns. Failing to do so, runs the risk of leaving certain demographics behind.
Personalization and intent-based targeting with first-party data
Companies can use first-party data for targeted advertising to reach their audiences more effectively and accurately. By leveraging first-party data, advertisers can create campaigns that are tailored to their target audience’s interests and needs in real time, leading to higher conversion rates. For example, if your perfect customer is a person who just had a baby, you can easily identify whether they have expressed interest in the goods you offer or promote online.
To truly understand your customers and provide them with relevant ads, it is essential to look beyond basic demographic information. Instead, turning towards intent-based actions can be far more effective in targeting the right audience for ad campaigns. Using technologies like advanced analytics to analyze behavioral data provides insights into what drives customer engagement, a key factor for any brand looking to compete in today’s digital landscape.
Data management platforms for improved ad targeting strategies
In order to make sure that ad targeting strategies remain unbiased, marketers must not just become aware of their own biases but also apply the right technologies. By leveraging first-party data on customers’ behavior and preferences, brands can effectively engage consumers with personalized experiences that meet their distinct requirements. However, many companies still aren’t taking full advantage of this powerful tool. The time is ripe for professionals across marketing and advertising departments to embrace customer data platforms and data management platforms to maximize their ROI while minimizing any potential prejudice from optimizing results.
Level up your audience targeting with iPROM Private DMP. Our first-party data management platform helps you effectively leverage available data to reach the right people while avoiding biases, all while strictly complying with European GDPR regulations. Brands and advertisers can pinpoint their ideal target audience by using advanced artificial intelligence in iPROM Private DMP. Users can leverage first-party data from digital media to identify lookalike audiences who have already expressed an interest in certain products or services. Let customers experience hyper-relevant and meaningful messaging through our tailored approach that ensures brands consistently deliver impactful messages at the right time.
Need more information on how to overcome your potential targeting biases? Do not hesitate to contact us.