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Importance of Your First Party Data and What Do You Need to Know About Privacy to Succeed in the Market

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Importance of your first party data and what do you need to know about privacy to succeed in the market July 2021 Who We Are Hosted by: Karolina Magda Wójtowicz Kraszewska Partner Manager CEE Platforms Partner Account Google Marketing Manager Platform Proprietary + Confidential Proprietary + Confidential Technology changes Proprietary + Confidential Rising user expectations for online privacy are affecting users and marketers alike Growing concerns from users, driven by … and marketers are seeing direct business missteps across the ecosystem have reduced impacts based on how well they’re building consumer trust... and sustaining user trust. of consumers say that in the past of people globally have stopped buying year they have become more or using a service from a company concerned with how companies 81% 48% due to privacy concerns.1 are using their data.1 of consumers say they are not return for every dollar a company confident their privacy is protected spent on privacy (cost of 59% by companies whose services or 2.7x compliance, privacy certifications, products they use online.2 maintaining data security).2 Source: 1Consumers kinda, sorta care about their data; 2Axios|SurveyMonkey poll: privacy deep dive Proprietary + Confidential Technology changes are fundamentally altering the foundations of the digital ads industry ! 3P Web Cookie is Browsers begin to cut Chrome announces Chrome announces plans Ecosystem is collaborating developed support for 3P cookies [ITP] Privacy Sandbox to phase out 3P cookies on alternatives 1994 2019 2019 2020 Now 2022 2012-2013 2020 2021 iDFA and AdID Apple announced Apple enforces App introduced restrictions for IDFA new restrictions Proprietary + Confidential What we can do today to prepare for a privacy forward future Proprietary + Confidential Start your privacy journey with solid tagging to power your entire advertising portfolio 1P solutions lay the groundwork for measurement & automation, which are paramount to improve accuracy and performance of your ad campaigns OPT-IN AUTOMATIC AUTOMATIC Get to know your customer Evolve & expand Stay informed Downstream 1P data solutions & infrastructure Modeling & automation Privacy through APIs impact Observed Enhanced Smart Bidding Conversions Conversions Global Site Tag Privacy Sandbox Revenue (site wide tagging) Consent Mode (For Advertisers with Modeled Attribution EMEA customers) Conversions Proprietary + Confidential Preparing your business for a privacy-focused future Evolve & expand Modeling & automation Predict outcomes and act in real-time/ evolve and expand With less user data available, modeling and machine learning help to maximize your own data and do more with less. Take action ● Conversion Modeling ● Smart Bidding Proprietary + Confidential When we combine the power of ML & automation with first-party data and human oversight, the results are significant! + + Advanced machine learning Human adjustments First-party data Automated bidding = = = = 15% 27% Campaign performance boost with Increase in conversion volume when machine learning based technology combined with non-last click attribution Source: BCG 2019 Study: The Dividends of Digital Marketing Maturity, Google Internal Data Conversion modeling Proprietary + Confidential Modeling and machine learning help to maximize your own data and do more with less Automated technology helps you identify key patterns and trends using your first-party data, predict future outcomes, and measure results, when there are gaps in your data or signals. Proprietary + Confidential Preparing your business for a privacy-focused future Get to know your customer 1P data solutions & infrastructure How to futur e proof your business: Collect data through first-party tagging and other measurement solutions to generate insights and tailor your channel experiences. Take action ● Global Site Tag (site wide tagging) ● Enhanced Conversions ● Consent Mode (in EMEA) Proprietary + Confidential Realize the full value of your marketing investments with first-party data solutions As data becomes harder to track, it reinforces the importance of developing stronger first-party relationships What should you do? 2x 1.5x Marketers that effectively These marketers also see Global site tag Enhanced Consent mode use their 1P data can 1.5 times the improvement (site wide conversions generate double the in cost efficiency over tagging) incremental revenue from companies with limited a single ad placement, data integration. communication or outreach. Source: BCG Global digital marketing maturity survey 2020 Global site tag Proprietary + Confidential The Global Site Tag is the most important step you can take to ensure accurate measurement Global site tag (Site wide tagging) Privacy-preserving / sustainable features Enhanced conversions, Google Tag Manager The future of Consent mode, etc analytics OR Google Analytics 4 Privacy-centric security and performance tagging Privacy Sandbox browser Gtag APIs, etc Enhanced conversions Proprietary + Confidential How does Enhanced Conversions work? It enables more accurate conversion measurement and increases conversion rates across Search and YouTube Purchase on website Signed in user base [email protected] Name* [email protected]@gmail.com Jane Doe Email address is anonymized Email* and securely matched against [email protected] anonymized Google login data Buy Conversion reported in Google Ads Consent mode (EMEA only) Proprietary + Confidential Consent Mode brings accurate consent rates & conversion rates Ads without Consent Mode User clicks on ad With Consent Mode Cookie settings User cookie settings We use cookies to provide you with the best possible experience. They also allow us to analyze user behavior in order to constantly User rejects improve the website for you. Privacy Policy. User consents MARKETING MARKETING Accept all Accept selection Reject all Necessary Preferences Analytics Marketing Unknown consent Conversion modeling Modeled conversions Conversion reported for users who reported reject consent Consent signal sent to Google that user converts; Conversion reporting as normal reported Limited data, low Total conversions = Modeled + Observed conversions conversions reported. vs Proprietary + Confidential Adopt products built on top of the global site tag & Google Tag Manager for enriched first party data what? where? who? Uses advertiser’s hashed Web advertisers in non- Enhanced increase in reported # customer data to fill in gaps Google Ads only sensitive categories with Conversions +3.5% Search conversions due to browser changes customer data increase in reported +12% YouTube conversions Improves conversion signals for Enhanced Web Advertisers using video and display inventory when CM360/DV360 only Attribution CM360/DV360 third party cookies aren’t available Adjust tag behavior and fill in Google Ads, Google App or web advertisers in Consent lost ad click to Mode gaps in conversions due to Analytics, SA360, the European Economic >70% conversion journeys consent banners CM360/DV360 Area (EEA) recovered due to user consent choices Provides most complete picture Google App or web advertisers of behavior and conversions Google Analytics only Analytics 4 using Google Analytics across Web and App Proprietary + Confidential The power of first party data Proprietary + Confidential Marketers and Customer Data Measurement Publishers should invest Solutions in this privacy-first, Actionable user-centric future and Insights take action now Implement best practices and invest in future-proof strategies that respect user choice and transparency Proprietary + Confidential It’s important to have a connected ecosystem If you are having a clear Audience Strategy 30% 20% Avg cost savings Avg higher revenue Source: BCG “Delivering Meaningful Moments with Data Driven Transformation “ https://www.thinkwithgoogle.com/intl/en-gb/marketing-resources/data-measurement/delivering-meaningful-moments/ Proprietary + Confidential How should marketers take action? Here are five key things marketers can do to harness first party data’sProprietary +full Confidential potential: 1 Tailor to customer objectives 2 Offer value in exchange for data Invest in tech and organizational enablers 3 Test and learn to determine activation 4 Refine and validate through measurement 5 Proprietary + Confidential Step 1: Tailor customer objectives How to take action: ● Create a plan with measurable goals to guide which data to collect & invest in Why Advertisers Should Care ● Map your first-party data to use cases and Without setting specific quantifiable objectives business goals for their first-party data, ● Calculate cost of acquiring data as well advertisers run the risk of not utilizing as related complexities (i.e. compliance with local data to its fullest extent or gaining privacy laws, risks of data breach, impact on sufficient value. consumer trust) ● Build a first-party data roadmap with specific use cases for relevant data sets, determining specific KPIs to track progress Proprietary + Confidential Step 2: Offer value in exchange for data How to take action: ● Utilize consent mode & site-wide tagging to capture consent signals while maintaining Why Advertisers Should Care measurement capabilities Brands must shift their mindset ● Use these levers to collect data in a way that is towards a more privacy-centric privacy-safe, allowing customers to ensure their data is being collected in a similar fashion approach and ensure the value exchange ● Prioritize the data you most need; only collect between
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