KEY TAKEAWAYS
Implications of Changing Privacy Frameworks on Measurement & Marketing
Scott McDonald, Ph.D. — President & CEO, ARF
Summary:
Scott McDonald of the ARF explained that the genesis of these two Insight Studios events was to develop a conceptual framework for the implications of changing privacy regimes for marketing and measurement. The three broad elements of the proposed framework were presented. Scott also reminded the audience about the forthcoming Delphi Report and thanked the participating experts, the Oracles of Delphi.
Key takeaways:
- Decreased access and processing of individually identifiable data reduces the ability of brands to connect data across touchpoints and platforms.
- Alternative strategies to mitigate the challenges include increases in modeled data and older modalities (e.g., contextual, MMM), as well as privacy-enhancing technologies, panels and additional analytics techniques.
- Additionally, the ecosystem will see increases in the aggregation of the data that is still available as well as increases in the need to join datasets on different identifiers, which will include matching across online-offline identifiers.
- Limitations on where, how and how much data can be used leads to increases in data minimization and purposeful data use and an increase in the importance of mass marketing, especially through social media channels.
- Increased scrutiny of data practices results in a number of outcomes including increases in the importance of building out direct relationships between brands, increases in expectations around consent, transparency and control and increases in commitments in data governance.
Panel Discussion
Marc Vermut — Vice President, Advisory Services, Neustar, Inc.
Amy Yeung — VP and Deputy Counsel General, Sallie Mae
Moderator: Scott McDonald, Ph.D. — President & CEO, ARF
Summary:
A spirited conversation addressed consumer trust as the foundation for accurate information. A fair value exchange between consumers and brands results in positive outcomes for both parties, specifically, precisely targeted and consented ads for consumers plus accurate first-party data and maximum profits for brands.
Building a flexible privacy framework is critical because technology, regulations and consumer perspectives are always evolving. This privacy infrastructure must be respectful, ethical and allow companies to adjust. Privacy by design is the way to proceed.
Key takeaways:
- Marc Vermut (Neustar) and Amy Yeung (Sallie Mae) agreed that there is no contradiction between the complicated legal environment related to privacy and the trend of companies doubling down on selling advertising based on their first-party data.
- Brands must build trust by providing clarity and creating value related to their use of data. Brands need to educate consumers on what data is being collected, how data is stored, measured and used.
- Amy is hopeful that the evolving laws and their interpretation will enable the development of a clear value statement to consumers.
- Responsible use of personal data by companies results in more profits for companies and more satisfied customers. Customers are comfortable with customized ads and offers based on granted permission. Brands benefit from accurate consumer data and knowledge about audience behavior in order to target consumers precisely and to improve measurement.
- The industry has played a valuable role by explaining the benefits of accurate data to consumers. However, data ethics are still evolving.
- The current tracking methodologies are intended to narrow the delta between technology and regulations. Companies need to provide consumers with a consistent approach to personal data and privacy.
- Marc pointed out that no marketer, publisher or platform has ever known everything about a customer, 360 degrees. One-to-one personalization is too difficult and expensive. Audience level data is manageable and allows privacy.
- Companies with network effects and companies with clearly improved products or services based on consumer sharing will benefit and be among the expected winners in the ecosystem.
- There will be winners and losers in terms of companies and methodologies.
- The industry has been evolving and will continue to evolve in terms of privacy regulations, measurement and how brands make decisions.
- Clean rooms and privacy-enhanced technologies will enable accurate measurement.
- Measurement approaches from the past, such as experimentation, advanced MMM, attribution across multiple channels, surveys, focus groups, panels, segmentation, will still be used.
- Brands must triangulate to make best decision.