Download - CH - eMarketer
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Owning Customer Data in a Cookieless World
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Goal of this session
Help you understand how the cookie limitations are already affecting your business and what a future-proof solution looks like.
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Who am I?
Martin Simo
Product Marketing Manager for CDP (incl. Analytics, Personalization, and Privacy) at Bloomreach
In the past:
● Chief Marketing Officer of a multinational e-commerce brand
● Co-founded marketing consultancy/agency
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1. Overall Business Impact Today
2. Impacted Tools and Use Cases
3. First Party Data Strategy
4. Actionable Marketing & Analytics Tactics
5. Q&A
Agenda
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Overall Business Impact Today
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Lower Channel Performance[Real Example]Email Revenue -30% YoY in reporting
Em
ail R
even
ue
Time
What happened here?
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Average increase in cost per action (CPA) when moving from conversion optimization to link-click optimization 1
150%OVER
Source: 1 Internal FACEBOOK study, “Quantifying Advertiser Value of Offsite Conversion Optimization” June 2019.
Higher acquisition costs
+45%Higher CPA if you’re losing
30% of conversion signals today
+105%Higher CPA if you’re losing 70% of conversion signals
in 1 year
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Why is this happening?
Without cookies, your website, marketing comms, and analytics lose the ability to remember. And you treat every customer like you’re seeing them for the first time.
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What does this have to do with cookies?
● Keeping track of who is who - most tools today use cookies to remember the browser, device, and customer
● Javascript implementations - most tools today are implemented via javascript pixels on the website
● Borrowing customers - a lot of companies today build their digital experiences with 3rd party tools and don’t own customer relationships
Martin
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What’s the overall impact?
Lower Data Quality
● Higher CPAs on marketing channels● Lower conversion rates on website● Bad budget allocation decisions
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Impacted Tools and Use Cases
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61%of sessions
are already affected today
Browsers that limit cookie trackers(example client data)
ETA 1/1/2022
Check specific browser restrictions at cookiestatus.com
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The impacted marketing tools
A/B testingAnalytics Attribution
Google Ads Facebook Ads
Other Ad networks
Affiliates
3rd party personalization tools
3rd party recommendation
tools
… and any other tool that uses a javascript pixel
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Advertising negative impacts
● Less data for optimization - Ad networks see less conversion data which makes the optimization less efficient
● Increased CPAs - changes in purchase/revenue data show paid channels getting worse
● Budgeting paralysis - how should you decide on which channels to take budget away from and where to put it?
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Analytics negative impacts
● Lowered Data Quality - data changing without changes in customer behaviour
● Harder Attribution - losing the thread connecting sessions affects reporting of advertising, affiliate, and other channel ROI
● Unreliable A/B testing - due to unreliable visitor split, especially on mobile
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First Party Data Strategy
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Data Leaksmaking customers privacy conscious
Market Competition
Google, Apple, Facebook, and smaller players
What’s driving the world towards the cookie-less future?
RegulationsGDPR, CCPA, ...
Cambridge Analytica (2016) GDPR becomes effective (2018) Safari launches ITP 2.1 (2019)
Chrome Privacy Sandbox (2022)CCPA enforcement (2020)
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Source: The success of the Tesco Clubcard in winning customer loyalty
First Party Data = Gold
Clive Humby: “… While, to a degree, a loyalty scheme is a form of promotion, it is an expensive way of doing this. The real benefit of a loyalty scheme is the very rich data obtained on customer behaviour. …”
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Long-term privacy-first solution
“Developing strong relationships with customers has always been critical for brands to build a successful business, and this becomes even more vital in a privacy-first world.
David Temkin,Director of Product Management, Ads Privacy and Trust
… And we'll deepen our support for solutions that build on these direct relationships between consumers and the brands and publishers they engage with.”
Source: Charting a course towards a more privacy-first web
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Understand the difference
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Don’t change for the rules. Change the game you play
Credit: Aleksander Woźnica
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Focus on value. In your communication and in your execution
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Be transparent. But not in-your-face
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Share the control. But not the burden
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Leverage micro-opportunities. And wait for the right moment
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Consent Management in 1st Party World
● No longer about just keeping track
● Needs to be part of real-time execution for every communications channel
● Privacy isn’t an addon, it’s a competitive advantage you need to build around
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Focus on Privacy & Security
5 ISO Certifications
The First GDPR Certified Company
in The World
SOC 2 (Type 1) Report
Your Privacy and Security Partner
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And we’re not alone who think so
Source: Apple’s Privacy Campaign (2020)
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Actionable Marketing & Analytics Tactics
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Assess the Damage
● Look at your browser share
● Look also at total numbers when evaluating channels
● Look at your data with a fresh set of eyes
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3rd party cookies
Find reliable ways for identifying visitors
1st party server-side cookies
1st party javascript cookies
Identity transfer (e.g. email)
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Implement server-to-server tracking
Client
website
Client server
PIXEL
Web browser
CONVERSIONS API EVENT
PIXEL EVENT
Conversions API is designed to help businesses respect people‘s privacy choices
Consumer
Source: Facebook
Bloomreach
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Example: Facebook Conversions API
“We were ready to go live with Conversions API in 1 hour. As always, the Exponea team made sure we understood the future impact on our data and reporting. We’re looking forward to finding new use cases and increasing the ROI of our Facebook Ad budget.”
Janet Duckworth Head of Marketing
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Checklist for Building a Future-Proof Solution
● Gives you ownership of the customer relationship
● Build around your customers
● Usable by your marketing team
● Enables real-time omnichannel execution
● Respects customer choices & privacy
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Key Takeaways
● Cookieless world isn’t something that’s coming, it’s already impacting you
● Focus on protecting your data quality in short term with server-side solutions
● Build a privacy conscious first party data strategy to succeed in the long run
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