The New Consumer Contract, with Erich Joachimsthaler of VIVALDI

Today’s guest is Erich Joachimsthaler, VIVALDI CEO and author of The Interaction Field (among others). Since his time at university, Erich has spent his career chasing the intangible value of a brand, far beyond sentimentality and logo recognition. In his latest book, Erich lays out the true intangible value brands can leverage — new digital business models that go beyond delivering great products and services. He shared why brands must enter into a new “Customer Contract” with consumers, one in which they work to solve problems faced by society, not the market.

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Light at the End of the Tunnel: How Dark Stores and Micro-Fulfillment Centers are Revolutionizing the Retail Supply Chain

As the well-worn proverb says, “necessity is the mother of invention,” the pandemic hit retail spaces particularly hard, pushing consumers to use ecommerce more as social and safety protocols increased. While there may be more stores open now, shoppers have found that the convenience and speed when ordering items online is invaluable even long after the protocols have gone.

To take advantage of this, retailers have turned parts or all of their spaces into “dark stores,” which act much the same way a warehouse or fulfillment center would. The opportunity then arises for retailers to not only leverage a wealth of direct consumer data from these types of transactions, but also provide greater personalization and localization services. This itself sets off a bevy of offers and angles from which to engage their customers.

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Pulse Issue 24

Who's on First? Party Data Efficiency in the Wake of the Cookie's Demise

December 2020

By Josch Chodakowsky, Senior Manager, Research & Innovation at Ask the Expert
By Josch Chodakowsky, Research Manager at Ask the Expert
As the news of the cookie’s so-called demise has spread far and wide (and we’ve previously discussed here), there have been a number of potential strategies laid out for marketers looking to navigate this brave new world. While further leveraging influencers or re-designing loyalty programs have emerged as two possibilities, we’ve also witnessed a natural tendency to focus on party data above all. This makes sense, as it’s the “death” of third-party data (in reality, privacy regulation barriers) that prompted a re-examination of how to properly use consumer data in the first place. Enter (or, re-enter, as it may be) first- and zero-party data, best explained by this chart from Cheetah Digital:
By relying more on data that consumers willingly supply, marketers can both adhere to privacy regulations and gain consumer trust in how and what data brands are collecting and utilizing. To learn more about how to effectively utilize different types of party data, see the resources below.
Owned media (websites, content hubs, and commerce platforms) are core pieces of a digital strategy. But confusion abounds over their ability to collect audience data – what can be acquired, how it’s governed, and how it can be used in content strategies. Add the GDPR and CCPA regulations, plus Google’s plan to phase out third-party cookies, Apple’s new bar for data privacy, and other data-related changes, and you’ve ended up in a date mire. And now another confusing concept has popped up: zero-party data.
 
To help marketers understand zero-party data’s place and purpose, the Content Marketing Institute described what zero-party data is, why it matters, and the role it might play in the future of marketing.
The collective digital ecosystem, and the ongoing privacy and brand safety tangle, has got marketers “stuck.” And the only way to get unstuck is to acknowledge that we got here because of insufficient data collection practices and disrespecting user data ownership rights. The associated brand safety issues that stem from the broken data collection dynamics are just the latest symptoms of what ails us. But we can heal ourselves if we move from third-party data to zero- and first-party data. The first step to getting unstuck is to understand the different types of data that exist, and this article from CMS Wire breaks down the different types.
Earlier this year, Think with Google explored how first-party data can help brands improve their digital marketing capabilities, and connect with consumers as they adapt to a changing world. According to the Boston Consulting Group, the benefits of using first-party data are clear: incremental revenue from a single ad placement, communication, or outreach is up to twice as high as that of companies with limited data integration. They also typically perform 1.5 times better in cost efficiency metrics. Yet despite these potential gains, just 1 percent of companies actually use first-party data to deliver a fully cross-channel experience for customers. There are challenges associated with achieving this, of course — such as access to consumer data, and concerns around data sensitivity — but tackling these can bring clear and notable benefits, and this article tells you how.
Dun & Bradstreet’s Gino Palozzi authors this guest post on Marketing Dive, writing that, “the digital advertising industry has found itself grappling with privacy regulations, pending elimination of third-party cookies, and a massive shift to remote work, which is impacting digital tracing. The changing environment has left advertisers seeking the next holy grail of targeting. This opens a door for publishers, who have a unique opportunity to reposition themselves and monetize their digital audience. Publishers who were disintermediated by digital transformation of their industry can take back control and become the preferred and primary provider for targeted advertising, but they need to start preparing now for the impending disruption.”
Whether it’s layering second- or third-party data, harnessing machine-learning or, using a hand-crafted model, marketers need to collaborate to find a combination of behaviors that reflect what is happening right now with their target consumers. While accruing data is easy, passing it along to an agency or audience partner can prove to be a challenge. These organizations are the ones that need to rebuild models and deliver audiences that more accurately reflect their current, ever-changing buying cycles. The best way to do this is through a fast, clean sharing of data.  ClickZ explains that marketers need to focus on cleaning up their first-party data, ensuring they can pass it along to their partners easily to maintain a customer-informed edge.
Are you an ANA member with a research request? Contact Ask the Expert to submit your question.

About ANA Marketing Futures

Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.

 

ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.

 

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