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Tag: targeted advertising

  • Why the Death of Cookies Will Make Online Advertising Better | Entrepreneur

    Why the Death of Cookies Will Make Online Advertising Better | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Third-party cookies have been dying a slow death for years. Google delayed the destruction of the cookie into 2024, and yet, there’s no doubt that the demise of third-party data is coming. When that happens, it’s going to change everything.

    While there will be necessary adjustments along the way, the removal of a cookie-driven marketing economy should be a major upgrade for marketers and customers. Here are a few ways that the absence of cookies will make digital advertising better.

    Related: What Are Cookies and How Do They Affect Your Online Business?

    1. Cookieless advertising will create a better customer experience

    Advertising with cookies is a data-driven affair. This often makes interactions cold and calculated. It can also make them misleading.

    In 2022, Search Engine Land was already trumpeting the end of the third-party cookie as a net positive.

    “Third-party cookies are predisposed to inflation and double-counting when it comes to conversions,” the publication explains, “And conversions, whether tied to an online purchase or a form submission, are what most businesses truly value.”

    Rather than focus on the customer, third-party cookies focus on results — and often, those results are miscalculated and inflated by competing marketing tools. By removing the third-party cookie factor, companies can refocus on what matters most: their customers. A more customer-centric marketing model looks past the algorithms and calculations and attempts to infuse every business activity with a customer-first mindset.

    A cookieless future is an opportunity for innovation and creativity. Native advertising platform Nativo utilizes a solution that leans into a new version of contextual targeting that prioritizes customer personalization. This solution uses AI to analyze and predict customer behavior, rather than third-party cookies. If companies rely more on AI for predictive analytics, they can protect the privacy of their customers while still collecting helpful data that can help them convert.

    The lesson? Refocusing on the current customer experience rather than third-party data is a good thing.

    2. Companies will need to be more intentional with data

    In the past, companies have been able to lean on the customer information gleaned by third parties to target their advertisements. This is effective to a degree, but it has also created a relationship gap between companies and their clientele.

    Now, brands will need to take a more thoughtful and personalized approach to their data collection and use. Remember, the end of the third-party cookie isn’t technically the end of the cookie concept.

    Companies can still collect first-party cookies. Treasure Data refers to these as “data you collect directly from interactions with your customers and audiences on your own channels.” The customer data management platform adds that this can include demographics, website activity, email engagement, purchase history and even customer feedback, interests and other behaviors.

    While brands will still be able to collect first-party data, they won’t be able to use it in traditional third-party data methods. Instead, they’ll need to invest in purposeful data management. This will require specific marketing end-goals to make it worthwhile, such as asking for feedback to improve a product or plan a future marketing campaign.

    Brands will also need to stay up to date with the latest consumer data privacy laws. As of mid-2023, nine U.S. states had comprehensive data privacy laws in place, and many others had bills in the works. This combination of purpose and security will create much more intentional data use in the future — and that’s absolutely an upgrade from the current third-party cookie marketing environment.

    Related: In the Fight for Privacy, Web Cookies Are Disappearing. Here’s What That Means for Your Company’s Advertising Strategy

    3. Phasing out third-party cookies will cultivate better customer relationships, too

    The removal of third-party cookies will allow brands to refocus on customers, but the impact will go past better awareness and revenue growth. It will also restore a sense of relationship. This, combined with first-party data, will make it easier to personalize and deepen customer connections.

    Writing in January 2020, Michael Schoen, the GM and VP of Marketing Solutions at Neustar, said, “A cookieless world is beneficial because it leads to an identity-centric approach, which we have seen to be a more effective approach to marketing.” The executive added, “When you stop focusing on the cookie and instead focus on the consumer’s overall journey, you have more insight and control when it comes to your impact on both.”

    The departure from cookies will allow companies to refocus on their customers, not just in specific interactions, but over the long term. They will see them as individuals with thoughts, proclivities and needs rather than reducing them to condensed data points.

    Related: How Marketers Can Prepare for the Removal of Third-Party Cookies

    From better customer experience to deeper client relationships to safer, more intentional data usage, the death of third-party cookies is likely to have a positive ripple effect that will elevate 21st-century marketing as we know it. The only thing now is to wait until Google starts phasing third-party cookies out next year — then the marketing fun can begin in earnest.

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    Kimberly Zhang

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  • How to Go From Unknown to a Must-Have for Your Clients

    How to Go From Unknown to a Must-Have for Your Clients

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    Opinions expressed by Entrepreneur contributors are their own.

    Going from unknown to must-have in your client acquisition process can be a challenging task. But it is not impossible. By following a few simple steps, you can increase your sales and become an authority in your industry. Below are three easy steps that anyone can follow to achieve this goal:

    1. Targeting

    When it comes to selling your product or service, choosing the right audience is crucial. It will help ensure that you’re offering a solution to a problem that your potential customers actually have. And it will also increase the chances of making a sale.

    First and foremost, it’s important to have a clear understanding of who your ideal customer is. This will require some research and analysis of your current customer base, as well as a deep dive into the needs and pain points of your target audience.

    Once you have a better understanding of who your ideal customer is, it’s time to start narrowing down your target audience even further. This can be done through a variety of methods, such as demographics, interests and behavior.

    Related: Personalization: A Perspective On The Future Of Targeting

    2. Messaging

    When crafting your messaging, it’s important to keep your target audience in mind. Catering your messaging to the stage of the buyer’s journey that your average customer is at is crucial. For example, your average customer doesn’t yet understand the problem that your product or service solves. Then it’s not effective to talk about how awesome your offering is. Instead, focus on educating and informing your audience about the problem and how your solution can help.

    Once you’ve honed in on the right messaging for your audience, it’s important to differentiate yourself from your competitors. Most businesses use similar phrasing, deliverables and outcomes when describing how they can help customers. By changing just one of these aspects, you can create an uneven playing field and tilt the odds in your favor. For example, offering a performance-based model or pay-on-completion pricing can set you apart from competitors and make you more attractive to potential customers.

    3. Leveraging press

    When it comes to marketing and growing a business, leveraging public relations can be one of the most effective strategies. Not only does it increase brand credibility, but if done right it has the potential for short- and long-term lead generation results. Boosting personal and company reputation attracts and converts qualified sales leads at an increased rate compared to competitors. Utilizing press with a well-oiled sales and marketing funnel is like adding the cherry on top to a gourmet cake.

    Boosting your personal and company reputation through press can attract and convert qualified sales leads at an increased rate compared to competitors. Utilizing press with a well-oiled sales and marketing funnel is like adding the cherry on top to a gourmet cake.

    So, how can you effectively leverage press within your business? Here are some tips:

    • Identify your target audience and develop a plan to reach them. This includes determining which publications and outlets your audience reads or watches, as well as identifying relevant journalists and influencers to target.

    • Create a press kit that includes all the necessary information about your business, such as your mission and vision, key differentiators and any recent accomplishments or newsworthy events. Make sure to include high-resolution photos and branding materials.

    • Develop a list of compelling story angles that showcase your business in a positive light and highlight the value you provide to your customers. These can include customer success stories, industry trends and expert insights from your team.

    • Reach out to journalists and influencers with a personalized pitch that outlines your story angle and the value it offers to their audience. Be sure to follow up with them to ensure they receive your press kit and to answer any questions they may have.

    • Monitor your press coverage and track its impact on your business. This will help you identify which outlets and stories are generating the most engagement and leads, and can inform future PR efforts.

    By following these tips, you can effectively leverage press to increase brand credibility and generate leads for your business. In today’s competitive landscape, standing out from the competition is crucial and leveraging press can be a powerful tool in achieving that goal.

    In conclusion, going from unknown to must-have in your client acquisition process requires a combination of targeted messaging, effective positioning, leveraging press and building a community. By following these steps, you can increase your sales and become an authority in your industry.

    Related: 5 Golden Benefits of PR

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    Carson Spitzke

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  • How to Advertise to Customer Emotions Without Invading Privacy

    How to Advertise to Customer Emotions Without Invading Privacy

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s probably not difficult to grasp that our customers’ purchase behaviors are deeply entangled with moods.

    There’s a reason that we call shopping therapeutic. Purchasing things we want sends a serotonin surge to the brain that can temporarily make us feel better if we’re stressed, depressed or anxious. Moreover, according to widely-cited research by Gerald Zaltman, 95% of purchase decisions are made subconsciously and driven by emotions — so it’s no surprise that advertisers have been interested in understanding and evoking particular mood states for generations.

    Now that data about internal states of mind is becoming more available, the stakes are higher when we consider how to act on this sensitive consumer information. For example, how far should brands go to utilize emotional data to encourage purchases?

    Let’s take a look at where we’re at and how brands can take a human-centered approach to the use of this sensitive information.

    Related: 5 Insights Into Human Behavior That Will Boost Your Sales and Marketing

    How we gauge emotions

    Let’s start with how we gauge emotions. Until recently, our data about feelings relied on self-reporting by consumers since it’s impossible to embody another person’s emotional experience. Self-reporting means that consumers answer direct questions about how they are feeling at a given time or in a given context. Usually, this happens via market research surveys.

    Neuroscience is advancing to the point that we may be able to accurately predict emotional states without relying on overt consumer admissions. This type of emotional assessment may prove to be even more accurate than direct consumer reporting since many people struggle to predict how they’ll feel in particular contexts.

    Technology that assesses activity in our brains is getting more advanced and better capable of predicting mood states. While most of this innovation is happening in research labs, we’re getting closer to realizing this technology as a marketing tool.

    Neuroscience and wearables

    The Art of Shopping, a subconscious shopping experience between art retailer Saatchi and eBay, is one of the most direct campaigns that aimed to utilize this technology in shopping.

    During the experiential retail event, attendees browsed an art gallery while wearing headsets that were designed to track a consumer’s mental engagement. When the software suggested that viewers were inspired, eBay added similar items to the patron’s shopping cart.

    While the activation was interesting, getting consumers to voluntarily and consistently wear mind-tracking headsets is far-fetched in our current environment. Although, it may become more common as more consumers adopt augmented and virtual realities.

    Today, wearables like fitness trackers and smartwatches are becoming more ubiquitous and can aggregate mood data inferentially or from the self-assessment of consumers. The devices can assess everything from our heart rate and breathing patterns to our mindfulness activity. This can imply or correlate to stress levels or provide more direct mood data on apps like Calm and Halo that encourage emotional reporting.

    Related: 4 Neuromarketing Hacks to Reach More People and Maximize Results

    Inferring emotional data

    There are other ways to gauge the mood of consumers, and some of them have a troubling history.

    Meta, formerly Facebook, was famously under the microscope for conducting a large-scale emotion experiment aimed at understanding if emotions spread through networks.

    It actively manipulated the algorithm of nearly 700,000 users without their informed consent, in order to serve them positive or negative content and to gauge the apparent mood in their resulting posts. Among other goals, the company was interested in how emotions might make the site more or less engaging.

    The more engaged users are on the platform, the more valuable they are to Meta’s advertisers. Critics worried that the company wanted to understand how to manipulate emotions to bolster its bottom line and increase purchases for its advertisers, without apparent regard for the impact on the consumer.

    Meta isn’t the only tech company making actionable inferences about emotions. Search engines like Google track emotional effects by utilizing software to assess language for positive and negative sentiments in search, among other tactics.

    In conjunction with the rest of their consumer data, such as browsing and purchase history, these tech behemoths have real power to understand, contextualize and leverage consumer emotion without the use of neurological equipment.

    Related: If You Want to Win Over Customers, Appeal to Their Emotions

    How are we using this data?

    Marketers are curious about how mood impacts purchases, and thereby interested in creating purchase paths that are aligned with particular feelings. Payment providers are paying attention as well. In fact, in their latest Future of Payments research paper, Worldpay from FIS identified personalization, including emotional engagement, as a trend that payment providers are attending to.

    Creating payment journeys that utilize emotional information from consumers may sound troubling. But it’s worth noting that consumers increasingly expect these kinds of personalized experiences from brands — as long as they are additive to the consumer journey.

    When an experience provides convenience to a consumer and helps the brand connect meaningfully with them, it can make the consumer feel supported and improve emotional engagement and loyalty.

    Striking a balance between utilizing emotional data to offer mutual brand-consumer gains while respecting consumer rights and privacy is tricky. This is why we need to think deeply about creating consumer safeguards as we venture into the future.

    Related: Personalization: A Perspective On The Future Of Targeting

    Where do we go from here?

    There’s no shortage of data, and we’re only going to get better at detecting and reacting to emotional states in various contexts. As advertisers and marketers, we need to be thoughtful about how all this emotional data is applied.

    We’ve already seen social media companies exploiting negative emotional states like anxiety and depression to move users toward a purchase path of aspirational products in categories like beauty and fitness (What’s even more troubling is that the algorithms are likely contributing to the negative emotional state, but that’s a conversation for another day). We’ve seen the same algorithms promote negative headlines that are likely to elicit engagement, which results in exacerbated political polarization and negative societal impacts more broadly.

    As an advertising community, we need to implement safeguards to protect consumers. These safeguards should come from regulators, as well as individual brands. Creating an ethics playbook prior to locking in uses of emotional data in the purchase path, conducting thought experiments for secondary and tertiary impacts of the use of mood-based information, and defining and acting in accordance with a brand’s values can help to ensure marketers are responsible brokers of mood data.

    It’s worth remembering that understanding emotion can have powerful positive consequences as well. As humans, we’re emotional beings and brands that can meet consumers where they are in their internal experiences are likely to create better and more meaningful connections. It’s imperative for brands to think through how they’re using emotional information, not only to create lasting relationships with consumers but also to take a human-centered approach to innovation.

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    Tina Mulqueen

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  • EU set to bar Meta from ads based on personal data

    EU set to bar Meta from ads based on personal data

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    Meta will only be able to run advertising based on personal data with users’ consent, according to a confidential EU privacy watchdog decision, a person familiar with the matter said on Tuesday, in a blow to the US social network.

    The Irish data protection agency, which oversees Meta because its European headquarters is located in Dublin, has been given a month to issue a ruling based on the European Data Protection Board’s (EDPB) binding decision.

    The EDPB will likely require the Irish body to hand out fines, the person said, asking not to be named because of the senstivity of the issue.

    Big Tech’s targeted ad model and how data is collected and used has drawn regulatory scrutiny around the world.

    Shares of the company were down 6.2% in mid-session trade. Google, Snap and Pinterest which are reliant on digital advertising, fell 2.2%, 8% and 4% respectively.

    The Irish case against Meta was triggered by a complaint by Austrian privacy activist Max Schrems in 2018.

    “Instead of having a yes/no option for personalised ads, they just moved the consent clause in the terms and conditions. This is not just unfair but clearly illegal. We are not aware of any other company that has tried to ignore the GDPR in such an arrogant way,” Schrems said in a statement.

    He said the EDPB’s ruling means that Meta must allow users to have a version of all apps that do not use personal data for ads while the company would still be allowed to use non-personal data to personalise ads or simply ask users for consent.

    The 27-country bloc’s landmark privacy rules known as the General Data Protection Regulation went into effect in 2018.

    Meta is engaging with the Irish body, a Meta spokesperson said.

    “GDPR allows for a range of legal bases under which data can be processed, beyond consent or performance of a contract. Under the GDPR there is no hierarchy between these legal bases, and none should be considered better than any other,” the spokesperson said.

    Apple’s new privacy rules, which limit digital advertisers from tracking iPhone users, have also been a blow to the Facebook parent.

    An EDPB spokeswoman declined to provide details of the decisions made. The agency said it stepped in after other national watchdogs disagreed with the Irish agency’s draft decision.

    Its draft decisions on Meta’s parent Facebook and Instagram focus on the lawfulness and transparency of processing for behavioural advertising, while its decision on WhatsApp concerns the lawfulness of processing for the purpose of the improvement of services.

    “The DPC cannot comment on the contents of the decisions at this point. We have one month to adopt the EDPB’s binding decisions and will publish details then,” the Irish Data Protection Commission said.

    Meta may have to change its business model, said Helena Brown, head of data & privacy at London-based law firm Addleshaw Goddard.

    “The direction of travel seems to be that the European regulators will not allow Meta to hide behind “provision of services” as its basis for using personal data for behavioural advertising,” she said.

    “Instead, Meta may need to change its approach to seeking clear, explicit consent instead. It will be a challenge for Meta to be able to explain its practices in a way that such consent can be lawful and well-informed,” Brown said.

    The WSJ first reported on the EDPB ruling.
     

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