Publishers have long complained that consumers come online to read their high-quality material, yet the "duopoly" of Google and Facebook control over two-thirds of all digital advertising spending in the UK.
To add insult to injury, publishers have accused the duopoly of monetizing their content without compensation in search results and through social media sharing. Because of this tension, Facebook temporarily blocked news material in Australia until striking an agreement to pay for it. The agreement was reached as Google and Facebook prepare to launch new areas of their UK services that will allow users to pay for content for the first time.
Publishers are now actively pursuing their part of the UK's advertising pot, having won the debate on the concept of getting compensated for the usage of their material. With Google caving to public criticism and ready to remove tracking cookies that improve advertising targeting but are deemed obtrusive by consumers, the time is ideal.
As the old advertising system comes to an end, the coming year will witness a lot of change as publishers begin to acquire their own first-party audience data. This will entail detecting visitors' interests based on the information they consume and, if they are logged in, recording their email address. By taking control of this data and converting it into highly defined audience categories, publishers can sell advertising directly to companies at greater prices, reducing their reliance on Google's data and advertising platforms.
But first let us understand what is first party data and how we collect the data.
What is it?
Data gathered directly from your audience, which includes customers, site visitors, and social media followers, is referred to as first-party data. "First party" refers to the party that acquired the data for retargeting directly.
When it comes to retargeting, first-party data is the best of the best since it's gathered from the people who can give you the most: your own audience. As a result, the data is as accurate as possible when it comes to creating forecasts and anticipating future behavioural patterns. It can include information such as:
- Data from your website, app, and/or product's interactions or activities
- Data in your CRM
- Data from your social media accounts
- Data from your email subscriptions or goods
- Survey information
- Customer feedback data
Why is it important?
First-party data allows a company to better understand its clients and segment them into distinct groups for marketing purposes. Businesses that use more dynamic and tailored advertisements have a higher conversion rate.
When breaking consumers into categories, using first-party data is comparable to using second-party data and third-party data for the following reasons:
- Accuracy: First-party data is collected directly from the audience. There are fewer chances of mistakes occurring because data is not held until firms acquire it.
- Ease of collection: Organisations' CRM systems already have first-party data, or it may be simply obtained using a data management platform. Businesses can process data as long as they establish a way for gaining access to it.
- Cost-effectiveness: Businesses can gather data for free after the audience has given their approval.
Second and Third party data
Second-party data is most easily described as another company’s first-party data. This is frequently achieved through strategic partnerships between trustworthy organisations that provide mutually beneficial products or services, or by cooperating with a company that gathers data for advertising reasons. For example Facebook or Google AdWords. Based on postings, searches, and other activities, Facebook and Google collect data. When you run an ad, you're leveraging their first-party data to target the individuals they think would be interested in your services. This is critical for reaching out to individuals in your community, especially if you just have access to a limited quantity of data.
Third-party data is any information gathered by an entity that does not have a direct relationship with the person whose data is being gathered, with the majority of it coming via online interactions. This market also gathers a lot of data - 2.5 quintillion bytes each day, from a number of websites and services, including:
- Online searches
- App usage
- Interactions on social media
- Use of cell phones
How can publishers use first-party data to their advantage?
Publishers who rely on subscriptions are in a good position to acquire and exploit first-party data. The material subscribers consume gives significant first-party data, and their onsite behaviour provides vital information. Find out how to make the most of it.
No middleman- With first-party data, you can build a straight path between your readers and your content, with no one in between, not even Facebook, Google, or Apple. Every connection you have with your audience improves your understanding of them, from subscription forms to behavioural data obtained through applications and websites. With this knowledge, you may tailor content and advertising to their preferences.
“Known” Audience- For publishers looking to connect their first-party data with the advertising ecosystem, converting consumers from "unknown" to "known" will be critical. When consumers are enticed to opt-in and become "known" to a publisher by a compelling value exchange, they will willingly provide first-party data that publishers may use to segment their audiences and provide targeted advertising and experiences.
Personalised Experience - The popularity of personalised user experiences is growing. They personalise subscription journeys and experiences for each individual consumer. It's a win-win situation since the more relevant the information is, the more valuable the data you can extract from it. According to Accenture, 83% of consumers are willing to share their data to create a more personalised experience. Using first-party data to build reader-friendly experiences – such as delivering personalised, relevant content and advertising – increases trust, loyalty, and engagement.
Read the article to learn more about personalised experience "Content Personalisation for Digital Publishers"
Community Engagement- Subscribers and ad revenue are two advantages of having an active community. Publishers that utilise community engagement tools may learn a lot about their core audience's behaviour and interests by analysing user interaction, behaviour, and preference data. The raw data may then be plugged into publishers' paywall, business intelligence, CRM, and data management platforms.
- A data strategy and a data management platform are required to produce a true first-party data asset. The best platform depends on your goals, but it should at the very least allow you to combine data from all of your channels and create relevant audience segments. It should also give you the reports you need to draw conclusions from demographic data and on-site behaviour. The supplier you select should also provide the assistance you'll need to get started, maintain, and expand your first-party data capabilities.
- Publishers will need to provide a good customer experience to get data directly from customers and maintain it current. Content that draws audiences and keeps them coming back is required to capture newsletter registrations, site subscriptions, poll replies, or relevant behavioural data. Data collection, storage, and usage transparency will become increasingly critical in preserving brand confidence.
Now you are at the end of the blog you know everything there is to know about first-party data and why it is so vital to the digital publishing business. Publishers may be sitting on a first-party data goldmine. As we are so close to the death of the third party cookies its high time to change your strategy. To learn more about how Evolok can assist you with your first-party data strategy, request a demo now.