Facebook’s inordinate growth has experienced its first knock, experiencing its slowest quarter of growth since the social media platform went public.
Amid the ongoing Cambridge Analytica scandal, the implementation of the GDPR and “Fake News” perpetuating the news agenda, it’s been a turbulent year for Zuckerberg et al. These continuous setbacks have led to the social network losing users in Europe, missing analysts’ digital ad revenue projections and a 19% dive in its share price.
As Facebook seeks to rebuild consumer trust, and that of the brands that advertise with it, it’s begun a campaign of emotive tv ads and shutting off the use of third-party data-sets to power ad targeting. For brands, it’s time to react too, and lock down a fully-fledged first-party data collection strategy that offers a value exchange, and rebuilds trust with consumers.
The Difficulty With The Third-Party Quick Fix
The Cambridge Analytica and “Fake News” scandal aside, for years Facebook has been powering its ad targeting through third-party data-sets. There’s nothing untoward about this, however from a business perspective, it’s just bad practice.
Third-party data is commonly aggregated from unreliable sources like credit scores, cookies and click trails. And sadly, this quick fix has led to consumer mistrust as well as stale, useless data loading CRMs and powering DMPs.
As a result users are being targeting with irrelevant ads from incorrect and outdated data that has little to no direct relationship with the prospect. Consumer preferences, budgets, household sizes and many other variables fluctuate over time, credit scores go up and down, and consumer data then becomes antiquated, hampering the quality and effectiveness of your campaigns.
64% – of marketers admit that bad data hinders their ability to provide a truly excellent personalized experience
Can Privacy And Personalization Coexist?
Not only is ad revenue stalling, but Facebook users are deactivating their accounts in larger than expected numbers. We’re in a new era of privacy and consumers are more concerned than ever about what their personal data is being used for. But hold a second…because these same consumers demand better personalization year-on year. There’s a chin scratching emoji for this paradox.
92% – of consumers are concerned about data privacy
Like rainbows and rain, if you want one, you have to give up something to get the other. First-party data allows brands to build direct relationships with consumers, and in turn, better personalize their marketing efforts. This is because first-party data comes directly from your customers – no intermediaries, no guesswork and no irrelevant data points.
This type of data offers a window into their motivations, interests, intentions, preferences, and what really makes them tick. To attain this data, marketers need to offer a value exchange and deliver interactive experiences that ask the consumer questions in real-time, empowering brands to recommend products, services and content that is truly personalized.
First-party data can help alleviate data privacy concerns by bringing data capture and activation out into the open. When personalization is done correctly with good data and consumer buy-in, the results are dramatic, both in terms of conversions and brand affinity.
85% – of consumers are more likely to make a purchase if the offer is personalized
Instagram The Channel Of Choice For Data Capture
With greater advertising controls for marketers than its contemporaries, and fun, hyper-engaging features such as Stories and IGTV, Instagram is on the cusp, if it hasn’t already, of becoming the go-to channel for brands interested in taking their social media marketing to the next level.
If brands are a touch behind the curve, millennials are not, with Instagram comfortably the channel most widely adopted by the selfie generation. Instagram’s features encourage direct engagement over passive consumption, and by integrating real-time interactive experiences into Social Stories, such as quizzes, polls and meme generators you can do just that.
Taking it a step further marketers, can seamlessly incorporate simple data capture mechanics into these experiences that collect huge amounts of rich audience insights and first-party data that will fuel future marketing efforts.
92% – of marketers believe using first-party data is critical to their growth
10 Instagram Marketing Strategies Successful Brands Use
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