iOS14 Privacy Policy and 1st/3rd Party Data – What Every Advertiser Needs to Know to Be Prepared for 2021 (and beyond)

Three months into the Apple iOS14.5 launch, low opt-in rates create an opportunity to reset the dynamic between consumer, marketer and publisher to make it transparent, fair and consent based.

The new rules of first and third-party data reinforce the idea that personalization will take a back seat to privacy going forward. Android’s version of Apple’s App Tracking Transparency (ATT) feature is expected to follow soon, launching by yearend 2021. By 2023, Google aims to kill cookies, the tiny IDs that remember what consumers do across digital platforms. Here are three ways to prepare and respond now to the emerging privacy landscape:

#1 - Win with transparency

Give the power of your brand relationship back to the consumer. Understand that for them to give you consent to use their information they need to be confident that they can trust you to use their data appropriately. Trust equals consent.

Create a transparent value exchange where they don’t think they’re simply a data collection point. We’re not there yet: Only 3% of Americans say they understand online privacy regulations. Without a deep understanding of the benefits of sharing their personal information with a brand, opt-in rates are likely to stay low.

You can change a customer’s perspective by explaining they’ll receive more relevant online ads that are personalized, incorporating geography, interests and behaviors. Work to earn their loyalty by building direct first party relationships that give them access to content and a better overall shopping experience. And, importantly, give them the freedom to easily change their mind about their relationship with you and adjust their privacy settings.

#2 - Evaluate your partners carefully

It’s also important to continue to increase your access to first party data built through customer consent. You build trust by carefully vetting how all of your data sources collect customer data. With greater access to first party data from Retail Media Networks, retailers are making big moves to own their data and partner with companies like Catalina to monetize it just as brands and publishers do.

When evaluating any data partner, look at how frequently the data is replenished and confirm it is GDPR and CCPA compliant. Be ready to address new state rulings in the U.S. that differ from CCPA. Understand the processes in place to get the best consent-based data and confirm how the data was secured, the user’s control over it, and once you have their consent, how e data is being applied.

Ultimately, the goal should be to work with consumers to customize the data they give as part of an industry initiative to demonstrate fair value.

#3 - Invest in new media types and measurement tools

Invest in media channels that are less dependent on user targeting and have more engagement. Podcasts and other broad reach vehicles like broadcast radio and digital OOH will take on a bigger role because they give you the ability to position brands with content and context that’s more likely to resonate with the consumer.

Embrace media and measurement approaches that are not solely dependent on personal identifiable information (PII). Understand how much of the measurement is based on deterministic versus modeled or projected data.

Measurement is foundationally built on first party data that creates the measurement “seed” to understand who has been exposed to an ad. There are still several ways to plant that seed – opt-in cookies, IP addresses and data partnerships.

While the industry won’t move from ID to no-ID targeting overnight, we will start to see shifts to “grouping” or “look alike” models, or even contextual buckets. With this comes more projecting and less accuracy. Look for measurement tools that have deterministic data to power the modeling versus a pure model solution.

To isolate the impact of advertising on sales lift, for example, Catalina uses a methodology that ensures an unexposed group of customers mirrors an exposed group precisely. Our partnership with iHeart Media creates a way to measure and attribute the impact of podcast advertising on offline sales in physical stores.

By striking a balance between strong deterministic seed and sophisticated projecting modeling, marketers, agencies and retailers can blend context and content adjacency with measurement that is driven by reliable and ethically-sourced data. By taking this approach, you can create a true value exchange with your customers, one they will respond to and appreciate.

Visit Catalina’s measurement and optimization page to learn more about how you can improve your ability to target customers in real-time using consent-based data from trusted partners.

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