Companies and marketers are facing a significant shift in how they collect and use personal data – the new oil of the digital economy.
The rules surrounding data collection are evolving rapidly, with 65 per cent of the world’s population set to have their personal data covered under new more stringent privacy regulations by 2023 – up from 10 per cent in 2020.
A major change impacting organisations’ interactions with online users is Google’s plans to phase out third-party cookies by mid-late 2023.
What’s third party data?
Third-party data is harvested by an organisation with no direct connection to the consumer. It’s often gathered and used by data management platforms or data providers.
US marketers and other users invested $US11.9 billion in third-party audience data in 2019, up 6.1 per cent from the previous year – money that must now be redirected.
After 2023 these third party cookies will be blocked on the Google Chrome browser, forcing organisations to shift their focus to collecting first party data.
What’s first party data?
As Google defines it: “First-party data is unique to your business. It’s data that you own and collect with direct consent from consumers, through interactions on apps and websites.”
While the original timeline has been pushed back to 2023 to give communications professionals publishers, advertisers and regulators more time to adapt to the changes, the communications professionals are being compelled to implement changes now.
That means a significant shift for organisations that have been relying on third party data and not asking for visitors and users to register to their sites.
Organisations will need to offer tangible value in exchange for audiences to willingly give up their personal data, which could include promotions, member clubs and personalised customer experiences.
Studies show 63 per cent of US consumers said they’d be more open to sharing their data for a product or service they say they truly valued.
Personalised customer experiences and promotions are common techniques used by organisations to engage and retain users.
However, insight and actionable research is an innovative method organisations can deploy within the fast changing data marketplace.
Offering knowledge for data
The value of knowledge to drive the exchange for goods and services has already been established.
According to research by Edelman and LinkedIn, out of 1,200 business decision maker respondents, 58 per cent read one or more hours of thought leadership per week.
Additionally, 55 per cent of respondents said they use thought leadership to vet organisations they may hire.
While personalised and customised service might be seen as value with consumers, the business to business space is likely to find business and industry knowledge derived from original research of high value.
Organisations and marketers engaging these more discerning audiences are likely to find original and insightful content, critical tools in encouraging users to opt-in to data collection services.
Organisations that are able to produce original research and insights into critical industry and business issues will have an important advantage in gaining the increasingly valuable data from targeted users.
Useful and interesting information spreads widely, and delivers impact and influence – and is likely to be seen as a fair trade for discerning audiences, who realise their data is a valuable commodity within the digital economy.
As Google puts it:
“As you’re planning or re-evaluating your first-party data strategy, an important question to ask is, ‘Have we made it easy for customers to see the benefits of sharing their data with us?’