Why CPG Brands Are Leveraging First-Party Data
As third-party cookies are phased out, full ownership over valuable first-party data will help CPG brands drive more effective advertising campaigns. Here’s why.
For brands in the consumer packaged goods (CPG) category, there's an old adage that goes something like this: half of your advertising dollars are going to waste, but you can’t tell exactly which half.
Today, that no longer holds true. CPG brands don’t have to wonder why they’re losing valuable advertising dollars—or risk losing them at all. The evolution of digital retail advertising over the last few years has given CPG brands the opportunity to reach consumers in a highly targeted and personalized way before, during, and after their shopping experiences.
By understanding the importance of first-party data and how to use it, CPG brands can reach more customers—and drive greater profits.
Third-Party Cookies Are Out
There’s no denying that third-party cookies have historically been the centerpiece of digital retail advertising. For over 25 years, brands and advertisers relied on third-party cookies to learn about shoppers’ online behavior and drive targeted ad campaigns.
However, third-party cookies directly infringe on consumer privacy by collecting and selling customer information without their consent. In the wake of new privacy regulation laws, tech giants like Apple and Firefox have already banned third-party cookies, while Google is set to phase them out in late 2024 .
What does this mean for CPG brands? With third-party cookies on the way out, CPG brands need to prioritize a first-party data strategy to continue learning about consumer preferences without violating their privacy.
First-Party Data Is In
Instead of relying on third-party data, CPG brands can collect first-party data from a grocery or retail store’s retail media network, the advertising platform on their website, app, or other digital platforms. These closed-loop systems provide valuable consumer insights gleaned from a retailer’s online website, mobile app, and point of purchase sales.
The key difference is that shoppers have directly consented to giving information about their personal preferences including their web or mobile app behavior, in-store or call center interactions, and purchase history. When an ad campaign is created around a consumer’s unique preferences, this establishes a trustworthy, personalized connection without infringing on their privacy. With a first-party data approach, you also own your customer data, and have the freedom to use it without breaking your shoppers’ trust.
Personalization in Digital Retail Advertising is Key
With insight into shoppers’ past behaviors from first-party data, retailers can create highly personalized, targeted ads that drive engagement with consumers and encourage them to buy more of their favorite goods, try new products, and capture their attention at the right moment. This lends to a stronger shopper-retailer relationship—and longer-term loyalty.
Today’s CPG brands can’t afford to ignore the growing need for greater personalization. In fact, a May 2022 report from Salesforce found that 73% of shoppers expect brands to understand their unique needs and expectations. The combination of first-party data and personalization ensures that CPG brands are maximizing their ad dollars and ROI — building loyalty in the process.
Leverage First-Party Data with Swiftly
With Swiftly, CPG brands can leverage valuable first-party data to customize the consumer journey, reduce wasted ad spend, and promote long-term loyalty that leads to greater revenue.
All data collected on a Swiftly-powered platform is based on direct customer interactions, whether it’s through their in-app browsing history or their recent purchases—so shoppers are rest assured their information is safe while still getting a one-of-a-kind experience. The payoff? Meaningful relationships with customers that stand the test of time—and profitable ad campaigns that never leave you wondering where your money went.
Ready to embrace the future of digital retail advertising? Contact Swiftly today