This year, new privacy regulations will come into force and be enforced globally and in individual countries. All of these laws create an increasingly complex compliance journey that advertisers and publishers of all sizes will have to comply with if they don't want to be subject to enforcement action.
Over the years, people have become more aware of what personal data is collected, how it is used and with whom it is shared online. But they also say they prefer tailored content and advertising experiences. In fact, 74% of people only want to see ads that are relevant and useful to them.
It's time to take a hard look at your ad privacy strategy and realistically evaluate how much you can still rely on technologies that are on the verge of being phased out, like third-party cookies.
Companies that provide privacy-friendly experiences and relevant ads have an opportunity to stand out from the rest. And those that don't could lose customers: for example, 93% of Americans would switch to a company that prioritizes data privacy over one that does otherwise.
A change of mentality to protect privacy
Digital advertising today requires a new approach. To achieve results at scale, marketers need to move from “accuracy” to “prediction”
While the fundamental marketing objectives, aimed at increasing brand awareness, supporting purchasing intent and sales, remain the same, the ways in which to achieve them change. We are developing new technologies to ensure the effectiveness of campaigns without sacrificing privacy. Google's approach in this sense is focused on first-party data, artificial intelligence and privacy-protecting technologies.
Traditional ways of reaching and engaging audiences, and the metrics used to evaluate the effectiveness of campaigns, are undergoing rapid evolution that will reach its peak in a very short time.
What does all this mean in practice? Remarketing is a great example. It has arguably been one of the catalysts for concerns about online privacy because people perceive they are being “followed” on the web. So, in a world without third-party cookies, standalone remarketing campaigns are unlikely to achieve the same reach as today without the support of additional technologies such as artificial intelligence.
Create a lasting strategy with three ingredients
Once you've embraced the new mindset, it's time to take stock of your strategy.
For years we have been talking about the importance of adopting long-lasting and privacy-focused strategies and solutions, but now we are at a turning point. First-party data, AI and privacy-enhancing technologies are Google's key ingredients for privacy-focused marketing. And these are the key ingredients for advertisers and publishers to keep in mind based on their business objectives.
- Consolidate strategy based on first-party data. In an ever-changing landscape, developing and defining your strategy based on first-party data is more important than ever, especially as consumers move from device to device and their purchasing journey is more complex. PepsiCo, for example, was able to grow its first-party data by 50% by focusing on offering value in exchange for trust in managing personal data, creating long-term relationships.
- Use AI solutions. AI-powered tools require less data to make predictions and fill in gaps to help marketers optimize campaign objectives. The airline Air France increased conversions by an average of 9% in its European markets and achieved a 4% increase in France by more accurately measuring acceptance and conversions with modeling techniques.
- Test and implement privacy technologies. Marketers should use tools that incorporate new privacy-preserving technologies.
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