In the digital marketing landscape, effectively utilizing first-party data has become a top priority for marketers. A recent report released by Cint and Lotame sheds light on the significant challenges that marketers face in this endeavor. Titled “The State of Data Collaboration: A Global Perspective,” the report reveals that a staggering 70% of marketing professionals acknowledge the critical importance of leveraging first-party data for their campaigns. However, many encounter formidable hurdles that hinder their efforts.
The survey, which sampled over 1,200 professionals from various regions, including the UK, Australia, Brazil, and North America, identifies the leading challenge as finding quality data enrichment and collaboration partners. For marketers struggling with insufficient data, this roadblock can severely limit the effectiveness of their targeting and personalization efforts.
One of the primary issues highlighted in the report is the limitation of first-party data collection in painting a comprehensive picture of consumer behavior and preferences. A lack of diverse data can lead to an incomplete understanding of the target audience, which, in turn, impacts marketing strategies and conversions. As a response to these challenges, more than half of the marketers (53%) and agencies (50%) surveyed plan to integrate artificial intelligence into their data management processes to enhance data quality and insights.
Despite the increasing importance of first-party data, many marketers still rely heavily on third-party cookies. Approximately 32% of marketers and 21% of agencies report being entirely dependent on these cookies for consumer identification. This reliance poses significant risks, especially with the phase-out of third-party cookies by major browsers. To mitigate these risks, marketers and agencies are adopting a mixed approach to identity solutions, averaging 2.6 and 2.9 solutions respectively.
The trend towards new technologies is evident in the evolving advertising landscape. With marketers anticipating a decline in programmatic spending—55% of them expect a decrease—there is a clear shift in how advertising budgets are allocated. Future budgets are predicted to be evenly split between closed platforms, often referred to as “walled gardens,” and the open web. This adjustment highlights a growing skepticism towards traditional programmatic advertising strategies and necessitates the exploration of new avenues for engaging consumers.
Laura Manning, SVP Measurement at Cint, emphasizes the need for innovative strategies in the current advertising environment. She stated, “This research offers a deeper view of how marketers and agencies are navigating the current advertising challenges.” Manning points out that, despite the acknowledged barriers in data orchestration, there is a collective willingness to invest in technologies that can enhance audience targeting and personalization. In fact, 99% of respondents plan to adopt new marketing technologies, with 96% looking to implement new data technologies.
Andy Monfried, CEO of Lotame, echoes Manning’s sentiments, acknowledging the transformative changes within the industry. He notes that marketers continue to recognize the obstacles to effective consumer engagement due to an addressability gap. Orchestrating and activating data remains a struggle for many, but an increasing number are recognizing the benefits of collaboration. Monfried observes, “Rather than becoming mini walled gardens, marketers and agencies are realizing that a rising tide lifts all boats, promoting a collaborative approach to data.” This shift is not merely theoretical; it is enabled by the emergence of data collaboration platforms that facilitate improved data-sharing practices among marketing professionals.
The need for data collaboration is becoming increasingly urgent. As stakeholders align their goals, they can leverage shared data more effectively, enhancing the overall quality of customer insights. A collaborative approach not only helps to overcome existing data challenges but also opens new opportunities for innovative marketing strategies.
In conclusion, while first-party data remains a vital asset for marketers aiming to engage their audiences effectively, the hurdles in data utilization cannot be overlooked. From the reliance on outdated cookie-based tracking to the struggle for quality data partnerships, marketers must adapt to the shifting landscape. However, by investing in new technologies and fostering collaborative data-sharing practices, the industry can work towards overcoming these barriers, ensuring that first-party data fulfills its potential in driving targeted and personalized marketing efforts.