Lotame , a firm specializing in data enrichment solutions to meet consumers, revealed the four trends that will mark the digital marketing industry in 2021.
1.- Privacy and identity, much more united
Privacy will be the competitive advantage in 2021 and will be linked to identity solutions that embrace data minimization, put privacy above design and focus on non-personally identifiable information (not PII). 2021 will be the year of privacy laws, mainly in the United States, but in a globalized world no country is excluded, which will help the digital advertising industry build a more transparent and reliable ecosystem.
Given this, a large number of companies will look for new solutions to access the necessary information that allows them to run user attraction campaigns. This implies a new challenge, since until now the favorite strategy had been the use of email as a solution to privacy problems; However, this path does not fully guarantee obtaining information accurately, nor is it the most user-friendly way.
2.- Not all cookies will disappear
Last year the media and digital advertising industry became obsessed with the imminent disappearance of third-party cookies, especially with Google Chrome’s announcement to gradually join this decision starting in 2022.
For this year, the issue will remain on the table, so it is expected that advertisers will increase pressure on the media to meet their needs for monitoring, targeting and data measurement, in order to focus their advertising efforts and improve the attraction and loyalty of consumers.
However, not all cookies are the same and not all are prohibited. Cookies are managed differently depending on the browser and have different permissions. Firefox and Safari currently have no plans to replace third -party cookies with alternatives, but they still allow first-party cookies.
Businesses will need to take advantage of this year to prepare for the gradual elimination of cookies: talk to their partners about how they are handling third-party cookies and their plans for the future; create relationships with new suppliers, partners and platforms; while the websites will have to be updated and look for new solutions.
3. Improve data protection tools
In early 2020, Lotame predicted that the media would begin to wall up its precious data. As media and platforms invest more in context and build walls around their first-party data , they will face increasing scrutiny of demonstrating to advertisers the return on ad spend and its scale.
“Fenced gardens” may work in the short term for outlets the size of the New York Times, but medium and small will not survive alone in this context. This can lead those players to lean more aggressively on data enrichment and to test multiple identity solutions, demonstrating their flexibility and agility to meet advertiser needs.
4. The quality of the data will bring greater benefits
Data quality will live its “Marie Kondo” moment in digital advertising. As advertisers and media accelerate the collection of first-party data, the quality of the data will do the “magic” that the digital industry desires. This is a win-win for everyone, including consumers. As data quality improves, those players without the ability to place walls will rely on data enrichment to provide advertisers with precision at scale to impact key audiences. Those with richer, higher-quality profiles will see their reach skyrocket.
“ One of the biggest challenges advertisers and media will face in 2021 is being able to communicate with consumers and transact effectively in a cookie-free world. If they can’t get the identity right, they can’t understand or attract audiences at scale, which affects everything from customer loyalty, to sales and revenue, as well as business viability. With Panorama ID, we are giving the digital ecosystem the same opportunity to compete, improve relationships with consumers and offer exceptional, diverse and ad-supported content through the open web and connected devices ”, commented Sebastián Yoffe, Managing Director Latam & US Hispanics in Lotame.
“At Lotame we see a bright data future ahead with the right tools, teams and partners. Connectivity and collaboration across the ecosystem can create a fair, accountable and transparent industry for advertisers, media companies and consumers, “added Yoffe.