As data regulation and privacy concerns increase, the paid media landscape has some significant challenges to overcome. However, with these challenges, there is also a great opportunity.
There has been a raft of regulatory developments over the last few years to curtail some perceived challenges over data usage and privacy. The most significant impact will be caused when Google deprecates the 3rd party cookie from its browsers in mid-2024.
This is going to;
- Make it more difficult to run hyper-targeted media activity
- Exacerbate challenges in accurately tracking the impact of paid media
- Impact how easy it is to judge the success of all channels together (paid, owned and organic)
However, the end of third-party cookies and increased data and privacy can become a massive opportunity. Below, we will review some of the benefits.
The importance of brand and great storytelling
The ability to use 3rd party data sources and run highly targeted activity through digital channels has led to many organisations focussing on short-term goals and only running activity that can be tracked and measured to a point of conversion. This race to the bottom has been to the detriment of storytelling and brand work.
With it being harder to judge the effect of performance marketing and all channels together, brands will need to focus on their brand story and positioning, focusing more on content and context to fuel long-term growth.
A great example is how Air BnB has focussed on engaging storytelling in their recent campaign, redirecting the budget from paid search and performance marketing.
Machine-led optimisations & trusting the model
As it is harder to run highly targeted activity, data-rich platforms such as Amazon, Meta, Google, etc., are encouraging consumers to trust the algorithms to optimise campaigns automatically. This machine-led, AI-centric approach can be highly effective, enabling businesses to test multiple audiences, creative variants and environments quickly.
However, it is also very well suited to empowering generally supportive AI. Tools such as dynamic creative optimisations allow marketers to use machine learning to serve thousands of different versions of ads to consumers, ensuring they see the most relevant version. This could be based on many factors, ranging from weather and time to location, past engagement or environment.
The limitations and restrictions on human optimisations increase the value that can be realised through machine learning, and the challenges caused by losing some targeting capability may be remedied by trusting the algorithms to find the right person with the right message.
Partnerships
The increase in privacy regulation makes it harder for businesses to serve highly targeted advertising to their audiences. However, partnerships with large media publishers and (sports and entertainment) rights owners provide an opportunity to reach a specific audience with a relevant message.
Suppose brands collaborate with rights owners, who are rich in first-party data. In that case, they can capitalise on high-quality IP and targeted messages to a particular group of consumers. Digital partnerships with brands and publishers will become increasingly important as they provide a valuable and relevant way to engage consumers and get their attention.
Understanding what works and why
The measures that brands use to develop multi-channel attribution are increasingly being curtailed by privacy concerns and regulation. Therefore, brands must be creative in understanding the impact of paid, owned and organic channels altogether.
There is no simple way to do this; however, the best practice is to use multiple custom models in isolation with a well-developed overall structure for judging the success of all parts. Businesses need to create new models and build a fresh perspective to understand what works and how.
Understanding what works is the key to driving growth, and this reset provides a significant opportunity for many organisations to do that. The businesses who invest time into this will reek the rewards and can be far more efficient with their spending and marketing activations.
In summary, the increase in privacy regulation is very intimidating for many digital advertisers. However, better advertising, more adoption of machine learning, embracing new channels such as partnerships and resetting how you judge the impact of marketing all provide exciting and new opportunities for businesses to drive growth.
UP THERE, EVERYWHERE and The Hybrid House work in partnership to deliver highly effective media campaigns for clients globally. By combining creative ingenuity with data-driven precision, the partnership creates innovative, insightful, and results-oriented campaigns that resonate with target audiences and drive tangible business outcomes.
Connect with Kate Adams via the link below to learn more about our integrated services.