How to Get Control of First-Party Data for your Advertising Program
The Audience Group data team answers incoming questions about how to get to the stage where you can leverage your first-party data for marketing and advertising programs
Most organisations need to figure out how to get control of first-party data to inform advertising strategy. We like to help. That’s why we recently published a blog post titled You Have Enough Data. You Need A Data Plan.
Some of you had questions. Good questions!
- We need a first-party data plan but how do we begin? What specific steps should a company take to begin developing a first-party data plan?
- We have limited resources to dedicate to this. Can we still do it? How can businesses or teams with limited resources effectively manage and use their first-party data?
- What common pitfalls or challenges do companies face when shifting to a first-party data strategy? How can these be avoided?
Essentially this all boils down to needing advice on how to get control of first-party data for your advertising program.
Our Data Team responds:
Question 1: We need a first-party data plan but how do we begin? What specific steps should we take?
Answer: Here’s How To Develop a First-Party Data Plan:
Step 1: Data Audit
Companies looking to get control of first-party data should start by conducting an audit of the data they currently collect or to which they have access. We published an article in B&T with advice on how to approach a first-party data audit called Advertisers: Unleash your Data. It’s all about working to reveal three essential data types: the data the marketing team currently uses, the data they wish they had, and the data they’re unaware of but from which marketing and advertising programs could significantly benefit.
Step 2: Compliance
Review existing data capture and storage processes against privacy regulations such as the Australian Government’s Privacy Act, the GDPR or CCPA. Note that Australian regulations are likely to change and grow similar in nature to more stringent overseas regulations. Even if your business isn’t governed by all of these regulations, they and other privacy best practices should[DM[G1] guide your organisation’s data privacy policies.
This involves identifying various customer touchpoints and the types of data captured at each point. You will need collection statements that reflect how you will use any data collected. It includes establishing processes for the secure storage of data, agreeing upon an approach to data identification and visibility, and – critically – establishing processes for the destruction of data that’s not needed or that the business has had for a certain period of time.
Dealing with compliance gaps must form part of your first-party data plan.
Step 3: Decide How you Want to Use First-Party Data and Why
Set clear objectives for data collection. Risk is created when data is collected and stored just for the sake of it. When it is stored in such a way that the business doesn’t really know what data it has or where that data is. When there are no policies around what kind of data to keep and what to delete.
Consider what could be accomplished and prioritise to set objectives. Decide how and why the data will be used and establish processes in support of those objectives.
Objectives for using first-party data may include:
- Improving the customer experience;
- Enhancing personalisation in marketing efforts;
- Informing the enhancement and evolution of product offerings.
Step 4: Get the Tech side of it Right
Companies need to invest in the right technology, platforms and services that can handle data collection, storage, and analysis efficiently
Step 5: Establish A Culture of Data Security and Governance
Training staff and creating a culture that values data-driven decision-making are also essential steps. Establishing clear policies and practices for data privacy, governance and security to maintain customer trust is critical.
Step 6: Evaluation & Evolution
Evaluation and refinement of the data strategy will help you adapt to market trends, technology advancements and changes to regulation.
Question 2: We have limited resources to dedicate to this. Can we still do it? How can businesses or teams with limited resources effectively manage and use their first-party data?
Answer: Small and Medium-sized businesses can effectively manage and utilise their first-party data by focusing on quality over quantity.
If you have limited resources, concentrate on collecting data that is directly relevant to specific business goals. Utilising cost-effective tools and platforms designed for SMBs can help in managing and analysing data without significant investment. Smaller businesses can leverage this data to create personalised customer experiences and targeted marketing campaigns that can compete with those from larger companies. Partnering with other businesses, working with agency partners that invest in advanced data capabilities and/or leveraging community resources for shared data initiatives are all elements of cost-effective strategies. Regardless of resources, Small and Medium-sized businesses need to stay informed about data privacy laws and security risks and ensure compliance to build customer trust while implementing a first-party data strategy.
Question 3: Are there any common pitfalls or challenges companies face when shifting to a first-party data strategy, and how can these be avoided?
Answer: One of the main challenges companies face when shifting to a first-party data strategy is the initial investment in technology and skills required.
Working with agency partners that invest in advanced data capabilities for advertising and marketing can help you get control of first-party data. Certainly, it can help alleviate some of the strain of processing and analysing data.
Overcoming internal resistance to change and ensuring all departments understand the value and contribute to the data strategy can be difficult. There’s also the challenge of maintaining data quality and ensuring data is collected in a privacy-compliant manner.
Tips for avoiding common pitfalls include:
- Setting realistic goals
- Starting small and scaling up data initiatives gradually
- Investing in training for staff
- Choosing technology solutions that are scalable and user-friendly
Building a culture of data-driven decision-making is key to overcoming resistance. Ensuring transparent communication about the benefits of a first-party data strategy ensures success.
