You’ve got data, but do you know how (best) to use it? In part 1 of this Martech Podcast Q&A, Lotame’s Chief Growth Officer, Alexandra Theriault speaks with Doug Bell, CMO of Chief Outsiders about the rise of data collaboration and why it’s critical in a world without third-party cookies. From the challenges of integrating diverse data sources to innovative use cases, this Q&A session illuminates the current data collaboration landscape and the road ahead.
Q: What is the current state of data collaboration?
A: Data collaboration is growing with various players offering tools to merge multiple data sets. This evolution of the space is a testament to the myriad problems these solutions intend to address for digital marketers, such as unifying data within a company from different customer touchpoints, or permissioning first-party data with external partners to fill gaps in consumer behavior. Listen to the full response: (2:15)
Q: What challenges do businesses face in data collaboration?
A: Businesses struggle to unify disparate data formats and sources, including customer interactions from various platforms (e.g., chat, email, offline purchases). Additionally, as third-party cookies phase out, there’s a need for solutions to continue tracking consumer behavior and campaign responses effectively. Listen to the full response: (3:00)
Q: What are common use cases for data collaboration?
A: As a fairly nascent area, new use cases are unfolding all the time. Some examples include planning marketing strategies by understanding ideal customer personas, informing media investment decisions by identifying overlaps between customer bases and content consumers, and executing co-branded marketing between non-competing brands (e.g., airline companies and hotel chains) to leverage shared customer insights. Listen to the full response: (5:10)
Q: How does data collaboration drive innovation between brands?
A: Data collaboration provides brands a new way to think about their marketing strategies, particularly in targeting and retargeting consumers. For example, an airline and hotel chain could share data to identify common customers, enabling targeted marketing strategies that focus on high-intent phases for travel bookings.n Listen to the full response: (9:05)
Q: What is the impact of data balkanization in large organizations?
A: Data balkanization, or the segregation of data within different parts of an organization, hinders the ability to consolidate and utilize data effectively. Data collaboration platforms and clean rooms are emerging as solutions to enable secure data sharing and integration, minimizing the risks of data exposure. Listen to the full response: (10:17)
Q: Can you provide an example of a successful data collaboration initiative?
A: A significant trend is agencies setting up preferred publisher networks on behalf of their brands. This involves pre-committing advertising dollars in exchange for first-party data relationships with publishers, allowing brands to enrich their data and target audiences more effectively. This strategy is seen as a scalable way to leverage data collaborations. Listen to the full response: (17:22)
Listen to the 20-minute podcast here.
In part two of The Martech Podcast, Lotame’s Chief Growth Officer Alex Theriault chats with Doug Bell, CMO of Chief Outsiders about third-party cookie deprecation and what it means for online advertising and user privacy.
For decades, third-party cookies have been the linchpin of the adtech ecosystem, enabling advertisers to understand user behavior across the web with remarkable precision. Yet, with third-party cookie deprecation nearing, the industry stands at the precipice of change, necessitating a pivot to innovative strategies for engaging customers and assessing the impact of marketing campaigns.
In the following Q&A, Alex sheds light on the challenges and opportunities that lie ahead, from the effects on industry practices to the evolution of customer data collection and the growing role of data partnerships.
Q: What impact will the deprecation of third-party cookies have on understanding user behavior across websites?
A: The advertising ecosystem, in particular programmatic, relies on third-party cookies to stitch together how a consumer behaves across different browsers. The deprecation of third-party cookies will diminish access to complete user profiles, making it harder for brands to understand who their prospective consumers are and breakthrough with the right message at the the right time. Listen to the full response: (2:30)
Q: Which industries are likely to be more affected by third-party cookie deprecation?
A: Industries with long sales cycles will face more challenges, as strategies relying on deterministic identifiers (like email) for retention and messaging will be limited in their ability to find new customers resembling their existing ones. For instance, the automotive industry, with its longer sales cycles, might find it harder to retain consumer information over the years compared to e-commerce sectors with more frequent purchase cycles. Listen to the full response: (3:45)
Q: What are the potential solutions to third-party cookie deprecation?
A: Solutions include building relationships based on deterministic identifiers and leveraging technologies like Lotame’s, which help understand and identify user behavior whether authenticated or not. This approach aims to maintain the ability to re-engage consumers effectively even without third-party cookies. Listen to the full response: (5:14)
Q: How can customer data collection evolve in response to the changing landscape and the shift away from third-party cookies?
A: Brands should focus on improving ther value exchanges with customers to encourage the sharing of personal information. This involves offering clear benefits for customers to share their data, potentially leading to highly personalized services and products. Brands may need to think outside the box, utilizing strategies like panel-based or survey-based data collection to gather first-party data that represents their customer base accurately. Listen to the full response: (5:55)
Q: How do data partnerships and alliances fit into the future of data collection and analysis?
A: Data partnerships can enrich brands’ understanding of third-party activities and consumer behavior, offering a countermeasure to the loss of real-time data. Such collaborations can facilitate access to diverse, consented data crucial for executing accurate lookalike modeling and understanding customer lifestyles and purchase propensities. Listen to the full response: (8:00)
Q: Is the deprecation of third-party cookies ultimately a good thing?
A: Yes, it’s seen as a positive development, although the uncertainty around Google’s timeline for deprecation is a concern. This shift forces the industry to innovate and, pave the way for more sustainable and ethical data collection and usage practices. Listen to the full response: (10:20)