The coming tide of regulatory changes and privacy concerns in data-driven marketing will leave only the most valuable and consented data sets standing.
That is according to one executive whose company captures consumer data from the sharp end – actual purchases.
Damian Garbaccio, Chief Business & Marketing Officer at Affinity Solutions, believes that traditional marketing tools, like proxy metrics and various data points, are set to ebb away, leaving first-party data and performance outcomes as the gold standard.
Transition from Proxy Metrics to First-Party Data
In this video interview with Beet.TV, he says: “We’re sort of seeing this transition from a variety of data points, IDs, commoditized data sets, proxy metrics… all these items that would’ve been used traditionally in marketing…”
The shift towards a more privacy-compliant, first-party data-focused model is not without challenges. Brands are seeking more outcomes and performance at a time when it’s becoming increasingly difficult to deliver in the traditional way.
But Garbaccio sees a silver lining: “I really see it as clearing out some of the folks that were proxy data sets are not as valuable and those with true signal that will provide outcomes both a brand’s first party data and then augmented first party data.”
The Power of Transactional Data
Transactional data has been taking a growing role in the discussion.
Affinity Solutions’ platform captures credit and debit card data from over 140 million different sources, all consented and privacy compliant. Affinity Solutions has been partnering with ad-tech platforms to offer transactional data as a measure of advertising performance.
No wonder Garbaccio thinks advertisers cannot rely solely on first-party data.
“Retail media networks are advancing in big ways and seeing high returns because they’re dealing with a lot of that pure data,” he says.
Garbaccio acknowledges that the increased importance of first-party data and large data sets could potentially favor larger players.
But he says Affinity wants to be the “equalizer”, helping smaller brands leverage data to create best effect.
You are watching “Data and Identity-Driven Marketing in a Post-Signal World,” a Beet.TV Leadership Series presented by Experian. Please visit this page for more videos from this series.
