Increased Privacy: Marketing is about to get more expensive for digital marketers— Oti Ukubeyinje
By Zion Rufus
The past year has seen an increased focus on user privacy across all platforms. On its part, Apple has been announcing industry-stirring privacy policies to the horror of digital marketers and advertisers who rely on third party data and cookies for their ad tracking and targeting.
Similarly, Google’s third-party-cookies phaseout hinders gathering of tracking data. Where Apple sternly sees privacy as a fundamental human right, Google believes that preserving privacy and performance will protect the future of advertising. These increasing privacy policies will impact how well digital advertising performs. Amongst other worries, advertisers will no longer be able to deliver personalized ads and track the effectiveness of their ad campaigns without users’ consent.
“The impact of the push for privacy means that marketing will become more expensive and more difficult for marketers and advertisers from an awareness and acquisition perspective because as your access to data drops, your intelligence reduces and you are likely going to have to start expanding the number of people you reach again and this will cost more money,” says Oti Ukubehinje, VP, Product Marketing and Growth, Terragon.
“So what this means is that if not properly handled and creatively addressed, digital marketing will start to lose its effectiveness in a short time, businesses that don’t understand what exactly is happening will start to measure apples for apples and get convinced that traditional marketing after all is better than digital marketing in an ROI perspective and they may just start to move funds back into more traditional approaches like they were doing before prior to the emergence of data driven marketing,” the tech guru explained.
Apple presented a new App Tracking Transparency (ATT) policy which requires developers to ask for permission when they collect certain information (known as IDFA) from other companies’ apps and websites for advertising purposes. Google doubled its privacy policy by halting the measurement of IDFA altogether.
The ATT privacy update prompts iPhone and iPad users to opt in or out of data tracking across apps and websites, which can have major implications for retailers advertising across Google. iOS app developers who are using the IDFA, such as Google, Facebook, retailers, and many other organizations.
“Today, a lot of businesses and marketers rely on third party data and cookies to make informed marketing and advertising decisions, they work with second party data companies and third party data companies to have access to data and make marketing decisions sometimes in real time, sometimes over a period of time,” Oti said.
He advised: “The push for privacy does not necessarily mean that marketing has to stop or data driven marketing has to stop, it means that marketers and advertisers just need to become more intelligent and creative in how they go about collecting data in the most consented and compliant way from consumers. So it brings about the need for businesses to invest in their first party data strategy so that you would build your arsenal of consumer data that you have collected through a value exchange process thereby establishing a relationship that allow you to engage with customers better. This ushers us into an era where the value of the customer will automatically increase because those who you have within your pocket.”
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