Third-Party Cookies Are Going Away: Why First-Party Targeting Will Reign

Leading companies that deal with consumer data, including Oracle, Twitter, and Facebook, are slowly moving away from third-party data. Thanks to privacy regulations, such as the California Consumer Privacy Act (CCPA) and General Data Privacy Regulations (GDPR), holding third party data has increasingly become a liability.

In addition, as consumers started raising concerns regarding data privacy, Apple and Firefox have decided to ban third-party cookies for ad targeting in their browsers. Even Chrome plans to discontinue cookie after two years. So, how are marketers and advertisers going to understand their audience?

By relying on first-party data.

What Is First-Party Data?

How Can First-Party Data Help Marketers?

1. Get More Relevant Information
You know your customers the best. With first-party data, you can decide which information you want to collect and use for your marketing goals. On the contrary, third-party data is comprised of general audience segments that may not be broken down in a way suitable to your purposes. Moreover, with first-party data, you are in control .i.e. you know the source and the collection method (with consent and GDPR compliance), removing any gray area.

2. Eliminate Barriers with User Resolution
One of the issues marketers face is that their customer data is multiple channels, such as social media, e-commerce platforms, and email service provider (ESP). Usually, there is no data sharing between these
systems. As a result, one customer can have five profiles in your systems, which can make it tricky to target them at an appropriate stage. This is exactly where first-party data can aid you with connecting the dots and give insight into how customers interact with your brand.

3. Target Audience for Ads
Modern marketers are finding a significant boost in performance when using first-party data for audience targeting in their ad campaigns. From leveraging paid channels to target known customers to creating an audience of lookalikes of their premium clients on Facebook, first-party data is producing positive results.

4. Converting First-Time Buyers to Long-Term Clients
Studying trends and habits from real customers informs better decisions on customer funneling than relying on third-party data to decide what to offer after an initial purchase. Marketers are using first-party data to predict the interests of their first-time buyers, particularly what they will buy next, increasing the frequency of repeat purchases.

5. Personalize Campaigns
First-party data can help with personalizing email and other automated campaigns to match the interests, product, and context signals you extract from customers. Add predictive modeling into the mix and first-party data can facilitate with identification of VIP shoppers, allowing marketers to see where they should dedicate their resources.

How Does ArcaMax Help You Get First-Party Data?

Contact our sales team to learn more about current opportunities.

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