The 2021 Consumer Experience Report by Merkle is that the latest analysis to point out that first-party data collection is going to be a top priority for advertisers in 2021 as data constraints associated with privacy begin to grow. These limitations include the termination of third-party cookies, improvements to identifiers like the Advertiser Identifier (IDFA) by Apple, and legislation just like the Global Data Protection Rule (GDPR) of the EU, the California Consumer Privacy Act (CCPA), and last year’s Prop 24 by California.
While a great deal of focus has been on first-party data in the midst of the deprecation of third-party cookies, zero-party data, including “transaction intentions, preference data, personal context, and what the customer worries the company” will become increasingly important in line with Merkle.
By secondary actions, advertisers don’t need to presume consumer desires or behavior but are simply specifically told, right from the source. The most effective zero-party data is when consumers trust the brand and are willing to volunteer their data to comprehend that their experience will improve. “Marketers haven’t got to infer customer preferences or behavior through secondary behavior but are instead explicitly told, straight from the source. The simplest zero-party data is when the purchasers trust the brand and are willing to volunteer their data with the understanding that it will improve their experience,”
Second-party data is additionally on the increase and involves knowledge exchanged through non-competitive alliances, like a Buick tie-up with Amazon that aimed to support both the car brand and Alexa from Amazon. Via retail media networks, which still proliferate across supermarkets, including Walmart, Best Buy, CVS Pharmacy, Kroger, Target, and Walgreens, second-party data is additionally exchanged. Such networks allow advertisers to navigate the knowledge that marketers learn from customers after they are near making a buying deal.
More than 1/2 marketers use digital experiences and techniques to collect first-party data. earlier than technology solutions like identity resolution (36 percent) and omnichannel orchestration technology like a customer data platform, the report also finds (26 percent). This seems to be the case for CPG marketers, who are attempting to gather first-party data from a spread of experiments, like the recent offering of “direct-to-gamer” by Mtn Dew.
The report by Merkle indicates that walled gardens like Facebook and Google will become even more important for marketers, but it also expects an increasing influence for several addressable markets and partners, including a few new possibilities are likely to appear.
Despite its popularity as a less reliable method of targeting, contextual targeting is another area that might see a surge in interest. Jointly instances of interest-based advertising, the report points to Google’s privacy sandbox program.
Although over 1/2 marketers (59%) have a transparent understanding of the precise issues imposed by the changing data privacy landscape, a previous IAB study found that 41% of ad buyers didn’t know if their stakeholders understood the implications of the demise of third-party cookies and therefore the alterations to identifiers, suggesting that the road ahead could be a bumpy one.