In the digital advertising world, companies must now collect and analyse data directly from their users. This shift is a result of the decline in the use of third-party cookies, long considered the cornerstone of personalised advertising. The focus is now on first-party data, which includes behavioural patterns of target audiences obtained directly from visitors to companies’ own digital platforms. Investing in the development of proprietary digital media has become essential as this strategy paves the way for more targeted and effective digital advertising. In this post, we will explore why.
In a digital advertising world dominated by fast turnaround and flexibility, it is often difficult to advocate for continuous investment in digital advertising. However, analytical data contradicts this notion. Brands that continue to invest at the top of the sales funnel over several months achieve better performance and ROI compared to those that stop after just three months.
In the world of digital advertising, data has emerged as a key tool for customer acquisition and retention. Now, more than ever, businesses need reliable and accurate data to adapt and optimise their marketing strategies. Digitally aware companies are already crafting advanced advertising strategies that successfully activate their own first-party data to reach their target audience more effectively.
In the digital age, where competition is just a click away, brands face constant pressure to stay one step ahead of the competition. Advertising technology, first-party data and artificial intelligence (AI) are at the heart of this evolution and play a key role in shaping the future of advertising and media buying. Brands that ignore these technological breakthroughs risk finding themselves in a precarious position, unable to compete in a rapidly evolving digital environment.
When we talk about the implementation of display advertising using first-party data for better targeting and personalised advertising on the open web, we inevitably have to address the question of whether it’s possible and practical to automate the entire advertising process for our clients.
We live in an exciting and dynamic digital world where technological innovation, artificial intelligence and programmatic platforms constantly redefine the rules of the game in the advertising industry. Today, brands are taking on the role of value drivers in the digital crowd, ensuring the quality of products and services and attributing value to content. It comes as no surprise then that brand safety has emerged as the cornerstone of successful communication in the digital environment while advertising technology has become the holy grail of digital.
Despite uncertain economic conditions, digital advertising continues to grow, much like last year. Investments in digital advertising are firmly rooted in advertising budgets, driven by efficiency, measurability, real-time adaptability, and, most importantly, the ability to effectively reach today’s digitally empowered modern consumers. Therefore, it is imperative for brands to keep track of trends in media consumption, reach customers in a targeted manner and prioritise brand recall and reputation protection.
In the first quarter of 2023, the European economy showed encouraging growth indicators, but growth is slowing somewhat due to an uncertain macroeconomic environment and various factors affecting consumer sentiment. In Slovenia, economic growth has slowed compared to the last quarter of 2022. Inflation rates remain high and prices for goods, energy products and services are also rising. This could lead to declining consumer sentiment and a reduction in the consumer confidence indicator later in the year. We live in volatile times, and no one can predict what the second half of the year will bring.
Brands are like signposts for consumers and digital media is at the centre of information gathering where supply and demand intersect. The findings of the International Interactive Advertising Association’s (IAB) latest AdEx 2022 study reaffirm the key role of digital advertising, particularly display advertising, in enhancing brand visibility and establishing brands in a competitive marketplace. Despite the overwhelming volume of communication on the internet, advertisers are steadily increasing their investments in digital media, especially in display advertising based on first-party data. They have recognized the potential of this form of advertising for the long-term effectiveness of advertising efforts, the accurate targeting and the long-term consolidation of brand strength, ultimately resulting in increased sales.
For many years, third-party cookies have been an essential tool for digital marketers to gather data on consumer behaviour and personalize their advertising activities. However, with the rise of data privacy concerns and the phasing out of third-party cookies by major tech companies, marketers are scrambling for alternatives. In this new era when third-party cookies will no longer be a viable option, first-party data has become crucial for creating personalized advertising and gaining a competitive edge.