Adapting to the changing landscape and creating opportunities for brands
Marketers can rise to the challenge of creating effective customer acquisition strategies with limited resources during economic downturns and budget cuts. With an emphasis on relevance, marketers can find innovative ways to attract and retain customers, despite brands tightening their belts and focusing on their bottom line.
The changing digital landscape is reshaping marketing
The media landscape is in a constant state of evolution, and recent years have seen significant changes that require careful attention. With tighter privacy regulations and the emergence of new channels such as podcasts and TikTok, along with the changing consumer attitudes and online shopping habits, the challenge for brands is to make their marketing dollars go further.
The increasing cost of customer acquisition, fragmented attribution, and the need to select the right technology and partners all demand greater focus and attention. However, while these changes present a challenge, they also offer an opportunity for brands to stay ahead of the curve by navigating the evolving landscape effectively. Selecting the right channels, delivering relevant experiences with data and technology, and prioritizing attribution will help brands exceed customer acquisition goals.
The new & powerful prospective channel you didn’t know you needed
Ad spend is expected to grow 6% to $509 billion in 2023, according to the Winterberry Group, marketers need new solutions where they can confidently target the right customers who are primed to take action in a directly measurable way.
And this is why collaborating with a company like Rokt can provide significant benefits. Rokt challenges the traditional way of advertising and marketing by shifting the focus from disruptive advertising to personalized, relevant engagement that enhances the customer experience and drives better results for brands.
Evolving privacy frameworks and attribution
Due to the introduction of online privacy policies by governments and major tech companies such as Apple and Google, marketers are struggling to assess the potential of ad strategies that were once highly regarded. The 2022 State of Customer Engagement Report by Twilio reveals that 42% of brands expect lower ROI and decreased ability to measure campaign efficiency due to upcoming changes. 55% of brands are not fully prepared for cookieless marketing, as 81% still rely on third-party cookies.
These new privacy measures have already begun to affect the digital industry, making many of the current acquisition and ad strategies outdated. As a result, sales funnels are likely to look quite different a year from now.
Using first-party data to fill the cookie void
In the absence of third-party cookies, leveraging first-party data has become more critical in understanding your audience and delivering relevant experiences. First-party data is data that brands collect with explicit consent directly from their customers, which includes website activity, transactional history, and customer feedback. By analyzing this data, brands can gain insights into their customers’ behavior, preferences, and interests, allowing for the creation of more personalized experiences. With the sunsetting of third-party cookies, brands must shift their focus to the ways they can leverage their data. By using first-party data, brands can not only gain a deeper understanding of their customers but also build stronger relationships with them by delivering relevant and engaging experiences.
Through closed-loop ecosystems, advertisers can harness their first-party data to build custom audience lists, enabling them to target individuals who have previously shown interest or engaged with their business. They can also facilitate the creation of lookalike audiences, making it possible to reach new customers with a high potential for finding their offerings attractive.
Tracking success: Mastering attribution for business growth
Marketing attribution has become increasingly important, as brands seek to identify the channels and touchpoints that drive customer purchases. These changes reflect the ongoing evolution of marketing attribution, which has been driven by changes in consumer behavior and advances in technology.
One of the biggest challenges in marketing attribution is determining the true impact of each touchpoint on the customer journey. Digital platforms have different attribution models due to their unique ad delivery systems and tracking capabilities.
For example, Facebook provides advertisers a standard 7-day click and 1-day view attribution model to measure their ad’s effectiveness. This method of attribution acknowledges both clicks and views of the ad and enables advertisers to measure its impact across different touchpoints in the customer journey. In contrast, traditional bottom-of-funnel search like Google relies on a last click, where the last click before conversion is credited for the conversion. Meanwhile, display advertising which is more top-of-funnel in nature heavily depends on view-through conversions. View-through attribution records a conversion when a user views an ad but doesn’t click on it, then converts through a different touchpoint or channel at a later time.
Without a well-developed data science system or data warehouse, brands may face challenges in attributing success to specific channels and optimizing campaigns effectively. This can make cross-channel optimization a daunting task.
With a spotlight on data privacy, companies must adopt higher standards in protecting and managing customer data. For example, most data privacy laws require companies to obtain explicit consent and respect their choices in collecting their data. Considering that attribution relies on collecting and processing large amounts of data, data privacy should not be an afterthought.
To address this challenge, marketers are increasingly turning to data-driven attribution models that use advanced analytics and machine learning algorithms to analyze customer behavior across multiple channels and touchpoints.
Future-proofing and staying ahead of the curve with first-party data
Brands that prioritize their approach to navigating the current media landscape by focusing on data privacy and adapting strategies to leverage first-party data effectively are set to reap significant rewards. By integrating new channels to connect with customers, these brands will be able to optimize their marketing dollars with greater success. Future-proofing marketing practices are essential for brands that seek to thrive in the digital age and surpass their revenue and customer goals. By staying nimble, staying informed, and continually adapting to changes, they can stay ahead of the curve.
Boost your ecommerce growth with Rokt Ads–the ultimate secret weapon for growth-minded marketers. Rokt Ads is an exclusive, scalable acquisition channel that connects your brand with customers in the buying mindset, right at the moment of transaction. Download our whitepaper to learn more.