Everyone who uses the internet is undergoing a profound and abrupt change. By 2022, regulations designed to protect consumer privacy — particularly the California Consumer Privacy Act — will require the express consent of users to share and use data generated from UK digital marketing experts by major technology companies. Because users generally do not know how their data is used and are unable to agree to share their data, the US $ 152 billion digital advertising industry will lose access to most third-party data about program-based advertising (advertising purchased and sold using software).
This change will be an account for the advertising industry. The loss of third-party data, marketers, advertising agencies, and publishing and media vehicles displaying first-party data (data directly from consumers who agree to share) with little or no advertising will be in the dark about behavior and population intelligence. It currently enables them to create a target audience and segments.
While our research suggests that some executives in the U.S. advertising ecosystem do not think this loss will affect their revenue and funding, the economic impact on advertisers, publishers, and database providers is uncertain and the challenges are enormous.
6 Reasons why UK Digital Marketing Experts need not depend on Third-Party Cookies
A challenging industry-wide experiment
After a history of operating without proper and consistent protections for consumer data, the U.S. digital advertising industry faces significant challenges with ambiguous solutions. Note that the importance of program advertising has increased over the past decade, accounting for 78.4 percent of U.S. spending on visual and video advertising by 2020.
Many leading U.S. publishers currently use first-party data in their advertising targets, and executives interviewed for our research said they believe data changes will not have a significant impact on their businesses, as they have years of accreditation and payroll.
Other publishers, mostly non-premium players, rely on third-party targeted ads for more than 80 percent of their advertising revenue. Even premium publishers are actively looking for content consumers — their advertisers rely on a mix of first- and third-party data to help target audiences.
Rebuild ad targeting and data strategies
Advertisers and publishers will find that the value of direct engagement with consumers increases further after the loss of third-party cookies and identifiers. To build consumer connections, advertisers and publishers need to create experiences that consumers consider useful. Advertisers and publishers need to identify investments and functional approaches that help connect with as many consumers as possible.
Advertisers: Review the Acquisition and Management of Consumer Data
All data strategies must be communicated through the advertiser’s brand promise. Advertisers who traditionally enjoy strong consumer involvement in areas such as travel, retail, entertainment, and financial services, Maintain value exchange with customers is routine, and have a relatively firm position. Brand marketers in areas where consumers are usually excluded from customer transactions, such as packaged goods.
Build consumer confidence with compelling consumer experiences
The most ready-made advertisers we have surveyed have designed consumer experiences in which customers actively agree to share data (e.g., transparency of collected data, visibility in value transfer, data collection embedded seamlessly in the user experience). Valuable experiences for consumers tend to generate data as a by-product.
Share data in partnerships
Partnerships help advertisers manage the transition to operating without third-party data. Most marketers in our research look forward to redistributing more of their advertising budgets to walled gardens to access the knowledge of their larger consumer sites, size, and consumer relationships. Marketers expect to convert some of their advertising budgets to new addressable media, such as connected TV and retail media networks (which use retailers’ customer data to target consumers).
Modifying data management
Advertisers should experiment with different combinations of first-party data, updates to data management approaches, investments in technology, and data partnerships. Although advertisers can use first-rate data to understand the effectiveness of target media, they should use probability targets based on user behavior. In particular, they should link their first-party data analysis with database aggregate data for project advertising attributes.