First-party data: Your secret weapon for maximising ad returns this peak shopping season

Photo by Lukas Blazek on Unsplash

To stay competitive, local brands need to turn to a powerful tool – one that’s already at their fingertips, according to Daniel Levy, co-founder of ad and data-tech platform Flow.

“When it comes to connecting directly with your customers,” he says, “first-party data is the biggest weapon in your arsenal.”

What is first-party data and why is it gold?

First-party data refers to information a company collects directly from its own customers or audience.

Since it's gathered straight from users, it's highly accurate and relevant, giving businesses valuable insights into their customers' behaviours, preferences, and needs.

IAB Online AdSpend Report: SA's digital ad revenue soars to R17.7bn

27 Sep 2024

As Levy puts it, “first-party data is a powerful tool for targeting and engagement, especially in a privacy-conscious environment, because it lets brands hone in on exactly the right audience for their offering without relying on third-party cookies or external data sources. And when you use audience insights to make more strategic marketing decisions, you can make every cent of your ad budget work more effectively.”

Here are three data-driven strategies to help brands boost their sales this shopping season.

1. Use first-party data to get personal in all the right ways

Personalisation is no longer a luxury in today’s consumer market – it’s an expectation. But local retailers have a unique advantage when it comes to understanding their consumers’ behaviours, says Woolworths’ Head of Digital Marketing, Zack Nossel: “a direct connection to a known audience.”

“To stay competitive, you have to really understand your shoppers, and when retailers use reliable data to be as relevant as possible, it’s like a superpower,” Nossel says.

“For example, we know the current economic climate drives consumers to plan specifically for a discount event, and that two of the most purchased items on Black Friday are nappies and toilet paper. So we can use first-party data to deliver hyper-targeted offers to specific consumers, and, importantly, reach them right at the moment of intent.”

For brands, tapping into data they already own – from sales data, loyalty programmes, customer interactions, and more – can be helpful, but it’s a bit like fishing in your own pond.

This is where the use of audiences from a rich and diverse data marketplace can be invaluable.

With South African shoppers expecting localised experiences, personalisation through data-driven insights could be a brand’s winning move this season.

2. Be budget-savvy by hyper-targeting

While retail giants like Shein and Temu may dominate with huge ad budgets, the power of data-driven targeting cannot be underestimated.

“You don’t need to outspend the competition; you just need to outsmart them,” says paid media specialist at TrafficBrand, Dean Stander.

“The biggest challenge local brands face is ensuring their ads land with the right people. Brands should focus on refining their messaging and audience targeting, rather than simply increasing their ad spend on impressions. First-party data can give you precision, letting you deliver your message to the highest-intent audience.”

There are solutions that connects brands with highly-engaged audiences that are exclusive, because its data marketplace is built to make different audiences available to brands and agencies.

The data is pre-packaged and layered with shopper insights to help boost the return on ad spend.

An example is Flow’s Audience Calculator, which can be used to estimate the cost and reach of their ideal audience, and budget strategically to mitigate rising advertising costs.

Warc: SA's admarket to grow 6%, as global ad investment more than doubles

22 Aug 2024

3. Don’t wait to adapt to the new state of play

The digital advertising landscape has shifted dramatically in 2024, with privacy concerns driving brands to rethink their strategies.

While Google’s decision to delay the removal of third-party cookies gave advertisers temporary relief, the emphasis has now firmly shifted towards first-party data as the future of digital advertising.

“For many South African brands, adopting a first-party data approach is still a work in progress,” Levy says.

“But by owning and controlling your audience data, your brand can rely less on third-party platforms, and you can speak directly to the people most interested in your product.”

No one knows this better than Alon Rom, CEO of HelloPeter, who shares that complaints and reviews on the site increase on average by 60% during the year-end retail period.

He suggests, “savvy retailers can use audience data from HelloPeter to reach not only product and service reviewers, but other readers on the site – right when they are in the market for a specific solution.”

The fact is, first-party data is a win for both brands and consumers, and retailers who want to stay ahead must adapt to this new reality, fast. To drive sales and get more for your ad spend this shopping season, beat bigger budgets by harnessing the power of first-party data.