- These changes have upended the digital advertising strategy for hundreds of thousands of businesses, and have forced them to find a new path to their customers.
- This pivot is not all bad news for companies, since these Big Data-driven ads were based on outdated or inaccurate data.
- Brands that head in this direction and embrace new opportunities for marketing will see great benefits in the years ahead.
by Scott Frey
Direct-to-consumer businesses that previously relied heavily on Facebook as a way to advertise. Now they are starting to realize the perils that resulted from privacy policy changes instituted by Apple. These changes have upended the digital advertising strategy for hundreds of thousands of businesses, and have forced them to find a new path to their customers.
Some brands have remained loyal to Facebook as well as Instagram. However, many others are making sharp pivots to embrace zero-party data and first-party data while leveraging marketing based on one-to-one connections, such as TikTok.
What Changed with Apple?
Apple, maker of the iPhone and iPad, has made changes to the way it handles privacy for its users. They now give customers enhanced control over which of their personal data is provided to brands.
Driven by Big Data, these ads have helped companies target people on social platforms such as Facebook and Instagram. In the past they had the ability to deliver messages to someone who, data indicates, messages and offers would be of interest.
Big Data is the process of purchasing data from a third-party provider, collecting online activity, purchase history, social media content and more to identify consumers that are potentially interested in what companies have to offer. This is all driven by social companies like Facebook and Instagram.
How Are Brands Changing Their Marketing?
Apple’s privacy changes have made it more difficult, driving businesses to seek alternate channels for delivering their marketing messages. This pivot is not all bad news for companies, since these Big Data-driven ads were based on outdated or inaccurate data.
As a result, brands are taking a more community-driven approach to building relationships and producing their own content on social platforms and blogs. They are also working with smaller-scale influencers and returning to other “traditional” forms of marketing such as direct mail and email. These brands feel that engaging with consumers on social media through direct messages is almost the opposite of the large-scale targeting of consumers they had previously employed through third-party lists. By taking a more one-on-one approach to individual customers, they can make a lasting impression.
This pivot has helped companies leverage zero-party data. This is information a customer freely and intentionally shares with a brand they trust. It can include personal insights like preferences, feedback, profile information, interests, consent, and purchase intent.
The Result is More Trust, Empowerment & Data Control
For customers, this step is in the right direction in that they are more in-control of their data. The benefit to a business is that:
- It is unique to the brand and no other brand has the same data.
- It is the ultimate source of truth in that the customer offers up their own insight, rather than making assumptions based on big data.
- It is relationship-based, so it relies on a higher level of trust with the customer which means the company must be transparent about their use of the data and the relationship must be mutually beneficial.
Every communication across the customer life cycle (e.g., prospect, purchase, registration, customer service) creates a wealth of potential regarding the collection of zero-party data. For example, you can send customers a survey to better understand their unique perspectives on the company, products, or services. There are also opportunities to build a quiz into your welcome email, which can be both engaging and insightful. Similarly, you can send a text message shortly after a customer makes a purchase to entice consumers to share data and to set yourself apart from others. Some companies are leveraging pop-ups on their website that ask a few engaging questions, with the promise of providing something of value in return for their time.
Even B2B-focused businesses are seeing changes to the way in which they have been leveraging marketing. The FTC is currently reviewing whether to continue its Telemarketing Sales Rule business-to-business exception, which if discontinued, means B2B-focused companies would have more restrictions on telemarketing as the government cracks down on abuse. This means B2B companies would need to identify new ways of marketing, such as zero-party data approaches.
With the changes implemented by Apple, Facebook and Instagram have become less appealing as marketing channels. This has made engagement through blogs and traditional marketing even more valuable. Brands that head in this direction and embrace new opportunities for marketing will see great benefits in the years ahead.
Scott Frey is the original founder of PossibleNOW, which was formed in 2000. Today, he serves as the President and CEO for PossibleNOW, Inc. and PossibleNOW’s wholly-owned subsidiary, CompliancePoint. Frey is responsible for the business growth and acquisition strategy, product development initiatives, and all sales and marketing strategy for both companies.