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Owning Customer Data in a Cookieless World

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Goal of this session

Help you understand how the cookie limitations are already affecting your business and what a future-proof solution looks like.

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Who am I?

Martin Simo

Product Marketing Manager for CDP (incl. Analytics, Personalization, and Privacy) at Bloomreach

In the past:

● Chief Marketing Officer of a multinational e-commerce brand

● Co-founded marketing consultancy/agency

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1. Overall Business Impact Today

2. Impacted Tools and Use Cases

3. First Party Data Strategy

4. Actionable Marketing & Analytics Tactics

5. Q&A

Agenda

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Overall Business Impact Today

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Lower Channel Performance[Real Example]Email Revenue -30% YoY in reporting

Em

ail R

even

ue

Time

What happened here?

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Average increase in cost per action (CPA) when moving from conversion optimization to link-click optimization 1

150%OVER

Source: 1 Internal FACEBOOK study, “Quantifying Advertiser Value of Offsite Conversion Optimization” June 2019.

Higher acquisition costs

+45%Higher CPA if you’re losing

30% of conversion signals today

+105%Higher CPA if you’re losing 70% of conversion signals

in 1 year

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Why is this happening?

Without cookies, your website, marketing comms, and analytics lose the ability to remember. And you treat every customer like you’re seeing them for the first time.

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What does this have to do with cookies?

● Keeping track of who is who - most tools today use cookies to remember the browser, device, and customer

● Javascript implementations - most tools today are implemented via javascript pixels on the website

● Borrowing customers - a lot of companies today build their digital experiences with 3rd party tools and don’t own customer relationships

Martin

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What’s the overall impact?

Lower Data Quality

● Higher CPAs on marketing channels● Lower conversion rates on website● Bad budget allocation decisions

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Impacted Tools and Use Cases

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61%of sessions

are already affected today

Browsers that limit cookie trackers(example client data)

ETA 1/1/2022

Check specific browser restrictions at cookiestatus.com

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The impacted marketing tools

A/B testingAnalytics Attribution

Google Ads Facebook Ads

Other Ad networks

Affiliates

3rd party personalization tools

3rd party recommendation

tools

… and any other tool that uses a javascript pixel

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Advertising negative impacts

● Less data for optimization - Ad networks see less conversion data which makes the optimization less efficient

● Increased CPAs - changes in purchase/revenue data show paid channels getting worse

● Budgeting paralysis - how should you decide on which channels to take budget away from and where to put it?

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Analytics negative impacts

● Lowered Data Quality - data changing without changes in customer behaviour

● Harder Attribution - losing the thread connecting sessions affects reporting of advertising, affiliate, and other channel ROI

● Unreliable A/B testing - due to unreliable visitor split, especially on mobile

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First Party Data Strategy

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Data Leaksmaking customers privacy conscious

Market Competition

Google, Apple, Facebook, and smaller players

What’s driving the world towards the cookie-less future?

RegulationsGDPR, CCPA, ...

Cambridge Analytica (2016) GDPR becomes effective (2018) Safari launches ITP 2.1 (2019)

Chrome Privacy Sandbox (2022)CCPA enforcement (2020)

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Source: The success of the Tesco Clubcard in winning customer loyalty

First Party Data = Gold

Clive Humby: “… While, to a degree, a loyalty scheme is a form of promotion, it is an expensive way of doing this. The real benefit of a loyalty scheme is the very rich data obtained on customer behaviour. …”

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Long-term privacy-first solution

“Developing strong relationships with customers has always been critical for brands to build a successful business, and this becomes even more vital in a privacy-first world.

David Temkin,Director of Product Management, Ads Privacy and Trust

… And we'll deepen our support for solutions that build on these direct relationships between consumers and the brands and publishers they engage with.”

Source: Charting a course towards a more privacy-first web

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Understand the difference

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Don’t change for the rules. Change the game you play

Credit: Aleksander Woźnica

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Focus on value. In your communication and in your execution

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Be transparent. But not in-your-face

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Share the control. But not the burden

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Leverage micro-opportunities. And wait for the right moment

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Consent Management in 1st Party World

● No longer about just keeping track

● Needs to be part of real-time execution for every communications channel

● Privacy isn’t an addon, it’s a competitive advantage you need to build around

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Focus on Privacy & Security

5 ISO Certifications

The First GDPR Certified Company

in The World

SOC 2 (Type 1) Report

Your Privacy and Security Partner

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And we’re not alone who think so

Source: Apple’s Privacy Campaign (2020)

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Actionable Marketing & Analytics Tactics

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Assess the Damage

● Look at your browser share

● Look also at total numbers when evaluating channels

● Look at your data with a fresh set of eyes

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3rd party cookies

Find reliable ways for identifying visitors

1st party server-side cookies

1st party javascript cookies

Identity transfer (e.g. email)

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Implement server-to-server tracking

Client

website

Client server

PIXEL

Web browser

CONVERSIONS API EVENT

PIXEL EVENT

Conversions API is designed to help businesses respect people‘s privacy choices

Consumer

Source: Facebook

Bloomreach

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Example: Facebook Conversions API

“We were ready to go live with Conversions API in 1 hour. As always, the Exponea team made sure we understood the future impact on our data and reporting. We’re looking forward to finding new use cases and increasing the ROI of our Facebook Ad budget.”

Janet Duckworth Head of Marketing

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Checklist for Building a Future-Proof Solution

● Gives you ownership of the customer relationship

● Build around your customers

● Usable by your marketing team

● Enables real-time omnichannel execution

● Respects customer choices & privacy

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Key Takeaways

● Cookieless world isn’t something that’s coming, it’s already impacting you

● Focus on protecting your data quality in short term with server-side solutions

● Build a privacy conscious first party data strategy to succeed in the long run

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