In the digital age, data is no longer just a support tool – it lies at the heart of business decisions. In digital advertising in particular, success increasingly depends on the quality of data. Among all types, first-party data is a stand-out. This is the data that companies collect directly from users through their own channels, such as websites, mobile apps or emails. Because it’s obtained transparently and legally from a direct source, it is considered the most reliable insight into users’ needs, behaviours and intentions. And yet – although many companies are aware of this – steps towards the active use of first-party data often remain unmade.

Simon Cetin, founder and partner at iPROM and head of the Retoba Lab, emphasized the importance of data sovereignty in digital advertising in an article for Marketing magazin. He argued that companies without the vision to build their own data ecosystems end up paying others to access and activate their own data, which in the long run puts them in a dependent position and drives up marketing costs.

Hyper-personalization of advertising uses advanced data technologies to create advertising messages that are precisely tailored to individual users. While we’ve been discussing this concept in digital advertising circles for some time, the use of artificial intelligence (AI) takes it to a whole new level. Rather than relying on generic ads that appeal to a broad audience, hyper-personalization enables the creation of content that responds directly to users’ unique interests, behaviors and needs.

Writing for Marketing magazin, Simon Cetin, Partner at iPROM and Head of Retoba, summed up the key achievements and projects that defined 2024 and outlined the trends set to shape the future of advertising in the coming years. He highlighted the innovative use of first-party data and advanced AI solutions, poised to define new standards in personalisation and user experience.

Advances in technology and the wealth of data offer many opportunities for digital advertising, but the issue of bias in media planning remains important. Even though the advertising industry is increasingly data-driven and automated, subtle biases still occur occasionally, impacting the accuracy of audience targeting. Overcoming these challenges paves the way for more inclusive and precisely targeted advertising that resonates with diverse demographics and ensures fair and effective communication across all audience segments

Display advertising remains a key investment area for companies in the retail and FMCG industries. According to E-Marketer, these industries are expected to invest an increasing share of their digital advertising budgets this year and beyond. A primary driver is their focus on top-of-funnel advertising with the main objective of building brand awareness. Display advertising is particularly effective for creating a visual and emotional connection with target audiences, making it very important for consumer products like cosmetics, food, and beverages.

In a previous blog post I discussed why first-party data is the most valuable data asset today, offering companies valuable insights into their own media users to identify ad messages. Having said that, it is still important to recognize the pitfalls of relying solely on first-party data. While it allows us to better target existing customers, it falls short when it comes to reaching new potential customers, as it only reaches customers who have previously interacted with our data sources. Third-party data complements first-party data to expand reach and create opportunities to acquire new customers.

First-party data is becoming central to business processes and protecting user privacy is becoming increasingly important for companies. As third-party cookies are being phased out opportunities for targeting users are diminishing, creating new challenges for companies. They must balance the demands for personalized content with the growing need for data protection and data privacy.

Consumers increasingly value privacy and personalised treatment, making it necessary for companies and brands to take control of their own first-party data. Rather than relying on external sources such as third-party cookies, companies need to focus on the data they collect directly through user interactions. First-party data provides a valuable basis for creating personalised experiences and improving the effectiveness of future marketing strategies.

Change is the only constant in digital advertising, but one core principle remains key: reaching the right user at the right time with a relevant message. First-party data has become a fundamental element in delivering more personalised and effective ad campaigns, especially when it comes to reaching and nurturing existing customers. But why is it crucial for companies to store it in private data warehouses such as iPROM Private DMP? And how can this data be used to make digital advertising more effective?