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Data complexity: The rising sophistication of digital ad targeting

The use of the internet and social media have changed consumer behavior and the ways in which companies conduct their business

As the corporate sector tries to figure out the consequences of the third-party cookie ban, digital ad targeting is becoming more complicated than ever. Google recently extended the third-party cookie restriction, but the complexity and ambiguity persist.

While social media was arguably the most effective tool for leveling the playing field, the approaching death of the cookie, the iOS 14 upgrade, and the generally increasing complexity of ad targeting may be the last nail in the coffin for many.

We believe four essential elements will decide whether or not a company can adapt to the new digital environment.

Incentivization of data

Businesses that can use both online and offline tactics to acquire first-party data will be successful. For example, companies may utilize in-store QR codes and a conversational chatbot to encourage customers to provide critical first-party data that can be used for targeted marketing and audience growth.

Consumers generally receive tangible value from the most successful incentive schemes. Rewards/loyalty programs, free delivery, special discounts, and free gifts with purchase are examples of these. Other gamification approaches that make the data collecting process enjoyable and straightforward can also help customers benefit from sharing their data. With new digital marketing options growing across categories, data collecting will be critical for B2C and B2B businesses.

Establishing a brand

When businesses engage in brand development, they begin the relationship-building process without speaking directly with potential clients. As targeting becomes more complicated, branding and public relations will be the only way for firms to be seen without selling cold leads. Podcasting, innovative video techniques, and leveraging the media to position important news articles may help build a brand.

Companies may use social media to increase brand awareness and intent by genuinely expressing the brand’s value. However, it all starts with the customer when it comes to establishing brand-building strategies. 

Community management and customer relationship management

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The demise of the cookie will result in a massive increase in client acquisition expenses. Customer retention, social proof, reviews, and recommendations will all play a role in keeping costs down while maintaining a steady supply of leads. To keep your greatest fans happy and attract new ones, you’ll need to develop a community. As businesses search for methods to keep consumers and create referral networks, lifetime value will become critical.

Customer surveys are a fantastic method to stay on top of your consumers’ feelings and what may influence their purchasing decisions in the future. Unfortunately, for many organizations, email marketing is still an underutilized communication medium. However, businesses can now establish templates and prompted answers to boost customer engagement, upsell goods, and launch new programs using email automation systems.

Take control of your data: Identity management and behavior-based engagement

The difficulties that marketers will have gathering data will be one of several roadblocks in a cookie-free future. Google and Facebook, for example, have all of the information needed to target and convert prospects into consumers. As a result, businesses will rely on the services that these platforms supply. However, the approaching demise of the cookie has given rise to new and better creative ways for companies to develop; through identity resolution and behavioral monitoring, businesses can now own and manage their data and targeting skills.

Not only can new technology replace lost cookie insights, but it can also substantially extend them. In a world where most companies are reduced to impersonal tools and strategies, knowing who visits your website, where they came from, and their continued digital activity opens you to a world of customization possibilities.

Brands may use startups to integrate first-party data into advertising platforms to define their targeting and audiences. Consequently, client acquisition expenses are dramatically lowered, conversion rates are increased due to tailoring the whole customer experience, and chances to interact with audiences across various channels are expanded. When cookies aren’t working, identity and behavior take over.

There is light at the end of the tunnel for firms struggling to adjust to the rising complexity of data and ad targeting. Businesses can survive the storm and start constructing the roadmap for flourishing in the increasingly digital world by combining strong brand building, data incentivization, customer relationship management, and identity resolution.

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