Successfully Navigate the Data Deprecation Environment

SUMMARY

SUCCESSFULLY NAVIGATE THE DATA DEPRECATION ENVIRONMENT

By Harvey Goldhersz, IRI

New privacy laws, browser restrictions, Apple opt-in policies and Google’s pending removal of third-party cookies are contributing to the deprecation of data. These trends are, in turn, providing the impetus to build a stronger data ecosystem. In this environment, advertisers, retailers and publishers have a new opportunity to build consumer and audience relationships based on mutual benefit and first-party data consent.

Reinvention and reiteration will be themes moving forward as disruptions in the media data environment will continue to occur. These shifts will require constant vigilance, testing, learning and adapting. With these changes will come not only challenges but also new opportunities and incentives for advertisers, retailers and publishers.

Observations:

• The ability of stakeholders to sustain and grow revenue will be commensurate with their ability to optimize audience value in exchange for first-party data consent. “Freemium” soft paywalls, exclusive content, exclusive offers, and the ability to track and use loyalty benefits while shopping figure to be promising tactics.
• The legacy advertising ecosystem features different identifiers siloed across platforms. Opportunities to unify and improve identity resolution hold the promise for a more efficient, more integrated, increasingly standardized data ecosystem.
• First-party data has long been a key asset for highly considered purchase categories. CPG marketers are increasing efforts to acquire and enrich first-party data and to apply metrics such as customer lifetime value for the first time.

Opportunities:

• Putting consumer privacy at the forefront of data-driven decisions will keep brands and marketers ahead of privacy legislation and build trust with consumers.
• Your ability to work collaboratively with multiple advertising, publishing, retailer, data and tech partners will be a key success driver, whether tools and methods fragment or consolidate over time.
• The coverage, depth and recency of your first-party data corresponds to its true value. Updating and adding to customer profiles with accurate attributes and behaviors will build the value of your data.
• Aggregate data solutions such as marketing mix modeling and market lift will increase in value and help overcome data blind spots.
• Testing, learning and benchmarking the performance of new audience and measurement solutions over time and versus historical results now will help you prepare for success in the future.

This report shares these and other approaches that advertisers, retailers and publishers can use to successfully navigate the data deprecation environment — and establish new best practices for the next generation of data-informed marketing.

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