16 / July / 2021

First-Party Data Takes Its Place

New consent-based policies at apps and websites, like Apple’s App Tracking Transparency and Google’s move to eliminate third-party cookies, give more control to consumers and at the same time limit advertisers who rely on third-party data to build user profiles.

First-Party Data Takes Its Place

Addressable advertising, the ability to serve up video ads to specific individuals , is becoming more relevant and therefore challenging. Advertisers want to reach people who are most likely to buy, but how do they find these and what is the most effective way to reach them? 

An important, but too often overlooked, component is the ability to generate accurate viewer profiles that advertisers are eager to see. And this starts with first-party data, which is the information collected directly from your subscribers and includes more in-depth behavioral data points.

First-Party-Based Profiles Are The Path To Effective Addressable Advertising 

An advanced addressable advertising solution must have the capability to generate highly predictive profiling attributes gained from AI and machine learning algorithms to build a detailed picture of individual viewing behavior through time. 

As well, it is of high importance that such profile generation combines with immediate automated development and recalibration of data. 

Rich, actionable, and differentiated subscriber profiles are far more attractive than standard demographics for advertisers to be able to hyper segment audiences. Benefits of first-party data include: 

  • targeting results beyond basic gender, age, household, and geography 
  • profiles that represent the current first-hand behavior of subscribers
  • profiles that are less costly than purchasing third-party data for use as targeting attributes

A fully elaborated profiling solution should also be able to pinpoint audiences who have intent to purchase. The ultimate goal is to create attributes based on current actual behavior (not claimed behavior) in order to provide significantly more accurate target audiences to advertisers.

First-Party Audience Profiling Challenges 

Video service providers are always in search of methods of better monetiz ing using first-party profiling in advanced advertising need to cope with two big challenges: measurability and targeting payback. 

Measurability is a big issue in the industry. Advertisers want to know if the ads they paid for are viewed for the durations and frequencies they required and by the audiences that they wanted . That is why an assured and independently calculable measurement is crucial. This can be achieved by using a representative viewing panel. However, this requires suitable analytical expertise to develop. 

Targeting payback is the second big challenge and refers to the targeting attributes. In short, they must demonstrate uplifts and returns that are greater than not using any targeting at all. Addressable advertising is expensive and complex in terms of operation for an advertiser to deploy compared to broadcast linear campaigns. If the results are not better than just broadcasting your advertising, then why bother with targeting? 

Advanced ad solutions can provide an effective way to reach relevant audiences with relevant ads that resonate with viewers and help build new revenue streams but predictive first party audience profiling is a key component of success.