In today's rapidly evolving, technology-driven world, digital data remains critical to advertisers and companies are quickly recognizing the need to shift their focus to more sophisticated first-party data management platforms and analytics tools. To navigate this new landscape and optimize targeting strategies more effectively, we must first understand why independent first-party platforms and complementary analytical tools must be part of every advertiser’s toolkit.
Why should brands invest in independent platforms for managing first-party data?
As third-party cookie data becomes increasingly difficult to acquire, brands must focus more on collecting and leveraging their own zero- and first-party customer data to continue targeting the right audiences.
However, by investing in independent data management platforms (for example iPROM Private DMP) businesses may not only fix the problem created by the removal of third-party cookies, but also take full control over this valuable information that has frequently been ignored in the past. First- and zero-party data can be used in combination with a DMP for targeted campaigns.
These solutions (DMPs, CDPs) allow brands to access exclusive customer information that sets them apart from their competition. In turn, this drives a deeper understanding of individual customer preferences and helps cultivate closer relationships with consumers on an intimate level.
The benefits of using data for better targeting and customer trust
By collecting and managing first- and zero-party data directly, companies do not rely on aggregated data from their rivals, but rather use what their customers really want from them. They can then design targeted campaigns tailored to their customers, which lead to higher engagement rates and improved ROI.
In addition, brands that use independent data management platforms can instil trust in their customers by storing data securely in compliance with GDPR guidelines. By being transparent about how data is used within an organization – for example, for marketing purposes only – companies have a unique opportunity to build relationships with customers based on trust and mutual respect.
Protection of customers’ data strengthens relationships
To foster customer trust and loyalty, it’s important keep up with the most recent privacy standards. Brands looking to protect their customers’ data must invest in independent first-party platforms and analytics tools that respect data privacy and are committed to protecting that information in accordance with European GDPR regulations.
Brands should provide clear and comprehensive policies that explain how data is collected and used to demonstrate their commitment to transparency in the use of consumer data – something that’s critical to building strong relationships with customers. Such policies reassure consumers that the brand takes its ethical responsibilities seriously when it comes to protecting personal data, both now and in the future.
Complementary analytical tools provide comprehensive insight into the entire user experience
In addition to independent first-party data management platforms, there are several popular analytics tools that companies can use to better understand their customers by tracking and analysing the performance of their websites and applications. The most widely used are Google Analytics, Adobe Analytics, and Piwik PRO.
Google Analytics is a free tool that allows website owners to track their website traffic, user behaviour, and conversion rates. It provides businesses with valuable insights into their website performance and shows them the improvements they can make to enhance their online presence. Google’s privacy policies and practices have come under fire in recent years, with some regulators believing they do not meet the requirements of EU data protection laws. As a result, some companies are looking for alternative analytics solutions that prioritize user privacy.
With Piwik PRO’s privacy-focused analytics platform, data collection is easily tailored to the advertiser’s needs. Companies can use it to collect and analyse data without violating user privacy by leveraging different types of data collection that can be adapted to meet the company’s privacy and security requirements in accordance with European guidelines. This tool allows businesses to do more by giving them more integration options and access to APIs and raw data.
For companies that have developed advanced online presence strategies, manage large volumes of data from various environments and want to better understand customer behaviour and preferences, we especially recommend Adobe Analytics. This analytical tool enables companies to follow a customer journey across multiple touchpoints, including websites, mobile apps, and offline data. This provides a better understanding of user behaviour and helps companies identify untapped opportunities through predictive analytics. Adobe Analytics also integrates with other Adobe tools, such as Adobe Marketing Cloud, to provide companies with a complete overview of their marketing performance.
Before you decide on an analytics provider, I recommend that you analyse needs and regulatory requirements in detail and define a data strategy at the company level. If the strategy is aligned with the business goals, it quickly becomes clear what data needs to be collected, what it is needed for and how to process it later.
Control over your own data for strategic independence in the digital world
While each of these analytics tools has its own unique features and benefits, they all play a critical role in helping organisations make data-driven decisions about their marketing strategies. By using these tools in conjunction with independent first-party data management platforms, companies can build long-term differentiating advantages and gain a competitive advantage that is reflected in marketing performance, more efficient management of marketing investments and a higher return on investment (ROI) in the long term.
If you do not yet have a clearly formed analytical strategy or are looking for someone to help you – our analytical team can help you with your challenges. Write to us at anze.hribar@iprom.si.