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Everyone knows about the apocalypse of ad tech data approaches.
However, most are in no rush to do anything about it.
That's the latest finding from the Internet Advertising Bureau's 2024 State of Data Report: “How the Digital Ad Industry is Adapting to the Privacy-By-Design Ecosystem” (subscription required).
The IAB notes that 94% of survey respondents say they expect Google Chrome to eventually eliminate third-party cookies. But only 42% believe Google will follow through on his statement and eliminate it by the end of the year.
It's like that scene from the movie Don't Look Up. Dr. Randall Mindy (Leonardo DiCaprio) and Kate Dibiasky (Jennifer Lawrence) try to convince the President of the United States (Meryl Streep) that there is a 100% chance of a comet hitting Earth. “To be exact, it’s 99.78%,” says Randall. The President replies, “Let's call it 70% and go from there…You know…let's just wait and estimate.”
What should you do? Will this comet created by the end of third-party cookies, pending privacy laws and the inability to get first-party data crash the world of digital advertising technology? We asked CMI's chief strategy advisor, Robert Rose. Check out his opinion or read on.
Marketers listen but don’t respond to third-party data conversations
Every few weeks you will receive a reminder about privacy and data. Some are underreported, such as new laws in New Jersey and New Hampshire, and a proposed law in Maine could be the strictest in the country. Google is constantly offering new updates to remove third-party cookies in its Chrome browser, and even Microsoft is cracking down on Edge, its browser that no one uses.
But as the IAB reports, marketers and others know what's happening, but fewer than half believe it will happen this year.
If you weren't keen on joining in and trying out the Google Privacy Sandbox initiative, you're not alone. According to the IAB study, 80 percent of marketers know about it, but less than 60 percent are using it or planning to use it this year.
What gives? Why aren't brands, agencies and publishers doing more now to meet the inevitable day when they can no longer track advertising and other content across websites and platforms like they once did?
The IAB report suggests a few things but does not explain them.
The purpose of data collection and analysis is missed
First, marketers still assume that first-party data only refers to contact information, devices used, and transactions. The IAB survey found that consumer interests and preferences ranked last in first-party data collected this year. Still, interests and preferences are the most important thing you need to know. As I said: Give me the choice of collecting an email address or knowing the visitor's intent and desire, and I will choose intent and desire every time.
Secondly, the IAB research also highlights the lack of measurement options. It turns out that 76% of brands and agencies are currently investing or planning to invest in new forms of multi-touch attribution systems due to privacy laws and so-called “signal loss.” Because these brands are just starting out or planning investments, they don't currently have the measurement tools to understand this.
Using first-party audience data, you can understand impact – the impact your content, marketing, and customer experiences have on the audience. However, Google Analytics, marketing automation and other analytics tools measure consumption. You can see in fantastic detail what content is being consumed and how much. But you can't say what, if anything, motivated the customer to do the next thing your brand asked them to do.
According to the study, marketers are now rethinking their technology stacks to accommodate this evolution. Still, the four most commonly mentioned platforms are website analytics tools. That's scary. I'm a fan of customer data platforms (CDPs), but they seem to be the most attractive data tool that no one is using.
Companies seem to be doing everything they can to evolve without having to upend their existing content and marketing efforts.
Facing a difficult but vital challenge
According to the IAB report, most companies are training their employees in data protection, hiring business transformation teams and relying on external expertise. This is a positive sign. However, the key to success lies in the urgency of this work.
It's a big elevator. Connecting your own media assets – the website with your newsletters, the blog with your physical and digital events – into a single, data-rich, first-party source of insights into preferences, intent, impact and success is NOT for the faint of heart. It takes time. It requires perseverance and a lot of patience.
But I can tell you this: If you do it right, it's worth every sweat and equity you put into it.
It's like the comet in the movie Don't Look Up. There is more inefficiency, loss of data signals, and increased complexity in reaching individuals in different countries or states. It's not a “maybe it will happen.” It’s an “it’s already here” coming.
Marketing and content teams need to prioritize getting good first-party data in the coming months and quarters.
It's nice – and refreshing – to see the IAB affirm this, writing: “(Privacy by Design) is critically important – not just for compliance, but as a strategic imperative to do what is in our best interest.” the consumer is, and to strengthen our responsibility as an industry leader.”
I can only agree. It's also just good marketing.
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Cover image by Joseph Kalinowski/Content Marketing Institute
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
