In this post cookie world, marketers’ number one concern is to optimize customer acquisition costs and maintain value in a consent-based & adherence to privacy compliance. So, the data collection strategy a brand adopts becomes crucial for marketers to achieve their KPIs.
Different data storage methods compel us to understand the present data infrastructure and outline more loyal customer relationships. Leveraging Server-side tagging platforms allows a brand to implement first-party data collection strategy in this cookieless world..
This article will introduce you to:
- Need for first-party data for media marketers
- Best first-party data sources.
- First-party data tech stack
Increasing need for first-party data for media marketers
Third-party data is going extinct because of stringent browser restrictions to protect consumer data privacy. The whole data architecture to access customer leads is hence changing. The need for first-party data begins with the need to identify a customer along the entire buying journey. Marketers also need to capture and store these customer behaviors for building long-term relationships with their customer ecosystem. They need to identify and segment the influencers, users, payers, repeat customers, high-value customers and so on. For other marketing use cases that support establishing a better customer relationship, first-party data is essential.
How does first-party data influence marketing ROI?
The data has priority in marketing analytics due to its relevance and quality. It is easy to understand the target audience and locate missed opportunities. The data is used to customize ads and content according to user preference, and this helps in improving conversion rates.
First-party data’s value proposition to marketers.
First-party data offers different value proportions to marketers. It helps in improving their ability to execute basic digital marketing functions, including customer segmentation. It allows marketers to gain insights into their audience preferences and reach them with personalized offers. It offers improved ROI as the chances of conversions are more.
First-party data is an important tool in decision-making for marketers. It helps to understand how to attract more consumers according to their purchasing habits. The first-party data can influence media allocations and budgets because it helps them understand how customer journey affects conversion. This will provide an accurate path to analyze marketing attribution and understand how the budget shift affects online engagement and in-store sales.
Top four first-party data sources
The top first-party data includes mobile apps, websites, social media platforms and customer surveys. The sources also include SMS, email, surveys, customer service interactions, CRM systems, point of purchase, and direct mail utilizing digital data to notify offline campaigns. The input of first-party data includes customer’s interactions and visits, demographic data, purchase history, interests and how much time they spent on a particular product.
Registration or form submission on website landing page
Advertisers and marketers need to come up with innovative methods that can attract users to register to your site. Enterprises, including publishers, who previously over-relied on third-party data for data aggregation, do not prioritize the user information gained from website registration. The changes in browsing policies compel the marketers to gather all records obtained from the user’s visit. It is mandatory to deliver personalized user experiences throughout the digital marketing stack.
Server Side Integrations
Server-side data management, also called cloud delivery, is where pixels or tags transmit data to an API endpoint or as an streaming service. The integrated data is used by marketing automation platforms, analytics providers, for personalization tools or other execution systems. The data collected from this source is used for data enrichment due to its accuracy.
API is of two types:
1. query or get data from a data source return to the calling function/party.
2. exposed to receive data in a specific format from any authorized caller.
These are real-time operations that can either be sync or async calls.
ID linking for ad-related forms
It has been highly challenging to track returning users and provide a discriminate experience for new vs returning users. Building a unique customer identity with a unified ID resolves the problem of recognizing returning users and customers. Magic Pixel’s ID Link Service creates a First-party ID by leveraging any PII that a visitor provides., using the IP address and building a user profile over that. This can be further tied to the existing data to determine who is visiting your website and from which Campaign.
Such data can be applied to further optimize campaigns and personalize experiences.
First-party data tech stack
You need a distinct martech stack to capture first-party data or create a context for browsers to align with a first-party context. Tools to implement and integrate first-party data sources are numerous. Advertisers and media marketers can implement them to collect first-party data.
Media pixels: Tracking media pixels and implementing them on ads published on third-party sites brings back first-party data to your kitty. It gathers data on consumer behaviors and actions.
Server-side Tag Manager: Server-side tagging is an innovative approach to use Google Tag Manager. It helps to instrument your application over devices. Server containers use the same tag, trigger, and variable model, while also implementing new tools that allow you to measure leads activity wherever it occurs. It runs the tracking request through a first-party server and the primary source for collecting valuable first-party data.
Customer Relationship Management (CRM): This platform collects data through direct customer interactions mapped across different paid marketing integrations and landing pages. This can be cached for future usage.
Data Management Platform (DMP): DMP collects owned data based on downloads, clicks, purchases, interests and demographic information of consumers. It collects and arranges data that helps marketers to target ads to the precise audience segments.
Customer Data Platform (CDP): CDP stores first party data, including anonymous and PII data like individual customer names, postal addresses, emails, phone numbers. In addition, CDPs are integrated with advertising systems and can store Data Management Platform (DMP)-type information like cookie IDs with audience tags.
Begin your first-party data strategy with collection points.
While planning your business’s first-party data strategy, pen down the sources that you want to use to collect first-party data. With clear tagging mechanisms and providing a first-party data context to data sources, you can sail through with clean data.
Magic Pixel is a server-side tag management solution that provides a unique ID by applying a hash to every email ID. Magic Pixel ID Link service further indicates lookalike IDs that enable profile data enrichment. The acquisition of first-party data is also the first step to build a bank of owned data and the best utilization of this data improves information infrastructure. Magic Pixel comes with a DIY interface for marketers, data analysts and legal teams efficiently.