Reclaiming Retargeting In An Economic Downturn
For mobile marketers, retargeting has been and remains an important growth driver and KPI for success. Retargeting improves engagement, strengthens relationships, generates revenue, and most importantly, in our current economy, it's cheaper than attracting new users.
However, the new age of privacy has blocked these marketing KPIs. Apple's AppTracking Transparency (ATT) framework has significantly reduced iOS referral costs and redirected conversions to shopping apps, a sign of a more buoyant economy, which has fallen sharply on iOS. Android apps also crash after phasing out other user-level data access restrictions (from Meta, TikTok, etc.).
This is because persistent device identifiers were required to enable, measure, and optimize targeted advertising. Device IDs are freely shared between brands and publishers Brands thrive on being able to precisely serve their users with retargeting campaigns across owned and paid channels, combined with first-party data.
With the new age of privacy and the slow but sure removal of identifiers, marketers need to figure out how to drive retargeting conversions. The horizon isn't looking too bright as more brands jump on the Google Advertising Identifier (GAID), opt-out cookies and privacy bandwagon. As if that wasn't enough, traders are entering what is likely to be the longest economic recession in history.
What marketers need to understand in 2023 is that the key to retargeting and hitting your KPIs still lies in the brand's first-party user-level data, but not in the way you think.
First party data ownership (why, consent)
The biggest shift in the privacy landscape is data usage transparency, which requires user consent to share data between companies for use in advertising. Once users are selected, brands can leverage existing customer relationships and target their users in the right context, at the right time, and in the right way.
Of course, there are sensitive data points that should never be collected or shared, such as: B. Location data or other proprietary indicators that may be location-specific. While this is considered first party data, collecting and analyzing this data on a large scale can be highly unethical.
Troubleshooting and use of clean rooms
Creating a successful retargeting campaign consists of two parts: activation and optimization. Activation involves creating user segments and sending ads to relevant segments. In the age of privacy, enabling retargeting with Privacy Enhancement Technology (PET) has become indispensable. Simply put, PET is a technology used to protect the digital personal information of individuals and organizations. Data encryption, access control, and data minimization are recent examples of PETS used by technology companies.
Now half of the measurement is available to create a successful retargeting campaign (measurement, insights, optimization actions). Companies that use brand data points on the user journey, such as Data providers, such as reference data, can integrate data privately into data clearing houses (DCRs) to generate important insights.
The brand's first-party CRM data provides retail data, ie users who have a birthday in September or live in the New York metropolitan area. This data is not shared with the DCR provider and results in a fully aggregated data set and no static identifiers. Brands can then enhance this information with complete confidence in their users' data integrity and privacy
Marketers today need to focus on what makes retargeting campaigns successful: activation and optimization.
When it comes to user data, success is no longer a “better” game for brands. Marketers must respect user privacy, diversify data types, and minimize data usage. Misuse of user-level data is no longer a secret to retargeting. Done properly and sensibly, everyone benefits.
Edik Mitelman is General Manager of Cloud Privacy for AppsFlyer
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