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Adapting to the future of data-driven advertising

by Laura Nelson

May 25, 2021

This article is authored by Laura Nelson from WooCommerce, a Facebook Marketing Partner. Learn more about the partners, their specialties, and the Facebook Marketing Partner program.

The advertising industry is changing in ways that will affect all businesses who rely on an ad-supported internet to grow. More than ever, consumers want transparency and control over how their data is used, meaning companies are working to better protect consumer privacy.

Personalization and privacy are often presented as two concepts at odds with one another when it comes to digital advertising. But that isn’t the case—personalized ads and user privacy can coexist. To find this balance, businesses must innovate their data practices. Doing so will allow them to meet people’s needs around relevancy and privacy while maintaining effective marketing and measurement.

Why the ads ecosystem is rapidly evolving

In an effort to meet consumer expectations, governments are implementing new regulations and companies are evolving their policies to put control in the hands of people. In some cases, those policies have impacted long-standing advertising mechanisms. In 2018, the European Union (EU) implemented General Data Protection Regulation (GDPR), to give individuals control over their personal data. It also addressed the transfer of that data beyond the borders of the EU.

The use of third-party cookies is a great example of companies taking a proactive approach to consumer privacy. Third-party cookies are snippets of code that enable the measurement of customer activity. Advertisers use this data to make relevant offers to consumers. Some web browsers already block third-party cookies and most other browsers will soon do the same, which could impact advertisers’ retargeting and personalization strategies.

When personalized advertising meets a privacy-first world

People value highly personalized experiences. According to a 2018 study by Accenture Interactive1, 91 percent of consumers say they’re more likely to shop with brands who “recognize, remember, and provide them with relevant offers and recommendations.” But, while people value personalized experiences, they also want more privacy. Almost 97 percent of respondents to a 2019 Tealium Consumer Data Privacy Report2 survey were somewhat or very concerned about protecting their personal information.

We know that data-driven marketing is effective and brings value to people by connecting them to products and experiences they love. Thanks to data, companies can reach people with the right message at the right time in their journey – from the moment they first discover a product or service to the time they make a purchase.

But personalized advertising doesn’t need to work against people’s privacy. If businesses take the right steps to adapt their digital strategy, they can offer personalization to customers while reliably sharing data.

How innovative data control can make a difference

To help advertisers drive the outcomes they want using information and data they control, Facebook has built the Conversions API tool. As a server-based solution, advertisers can be safe in the knowledge that their data is protected against issues like browser crashes or connectivity problems. Plus, it can be used in conjunction with Facebook Pixel for full-funnel visibility and resilient data sharing.

When using a third-party plugin, the same data that flows through Conversions API and the Pixel is deduplicated based on a unique event ID, so there’s no concern about the same events being double-counted. Additionally, advertisers can use a wider array of data to inform their advertising than is currently captured by Pixel. This results in greater insight into the people who matter to their business.

What Conversions API means for the future of advertising

If businesses can’t adapt to our data-driven world, people may have to settle for less personalized and disruptive ads, and advertisers may incur increased costs. By implementing Conversions API, personalization and privacy can work harmoniously to bring advertisers a high-performing digital ecosystem, and give their audiences an experience they can trust in and relate to.

The good news is, setting up Conversions API is easy. In just a few clicks, you can measure customer actions in more ways, improve the accuracy of events sent for measurement and optimization, and control the data you share. Check out the full Woo Commerce article for your step-by-step guide to Conversions API and an insight-led future.

Disclaimer: Facebook Marketing Partners offer a broad range of solutions to help you advertise your business, sell your products and engage with customers more effectively. All our partners are vetted for excellence. Only companies that meet our standards can earn the Facebook Marketing Partner badge. Learn more.

Original article published by WooCommerce.

1. Accenture, Personalization Pulse Check, 2018

2. Tealium, 2019 Tealium Consumer Data Privacy Report, 2019


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