The Future of Permission-Based Marketing and Advertising

Changing the CookieBased Advertising ModelCookies have always been at the forefront of digital advertising and the upcoming elimination of third party cookies has the industry in turmoil Although Google moved the deadline for stopping thirdparty cookies until 2023 there has already been a growing trend shifting brands and advertisers away from this model as a result of increased privacy concerns and global regulatory changes The shift is part of a broader swell of action from tech giants including Apple39s App Tracking Transparency and Adobe39s Real Time Customer Data Platform changes which are just two who are paving the way for a permissionbased model where consumers have a choice of to whom and how their data is sharedThirdparty cookies differ from other site cookies that improve the user experience by remembering settings and choices Cookies keep items in your cart when you leave a page and return They can help save time with form submissions and remember language and currency preferences amp8211 all of this is pretty helpful to most internet users Thirdparty cookies are on the other end of the spectrum Far removed from helping with UI they instead track your actions and site visits in order to create a profile for advertisers which informs targeted ads to draw a profitAs third party cookies begin to dissolve into a distant past marketers need to change their behaviors and seek alternative ways to build trust loyalty and long term relationships with their customers to stay relevant Permissionbased marketing is the alternative amp8211 or at least a good alternativeCompensation and Trust to Reshape the Internet EconomyAlthough regulations like the CCPA and GDPR have ignited a global effort to empower individuals to control and keep private their personal data these regulations have been a boon to the same powerful intermediaries that triggered their existence The walled gardens have the resources to collect and process user data at extraordinary scale and since violators face costly fines advertisers are forced to consolidate their online ad spend with those with the wherewithal to absorb the riskMoreover if you vote own a home a car or a credit card you can assume that a wealth of information about you is available to those willing to pay for it Even if a thirdpartycookie is not at play your data is still being collected purchased and sold Notwithstanding the current regulatory apparatus and all of the changes in adtech your data is still out there and you39re not profiting from itWith users holding more of the reins of their digital experience they can rightfully expect some compensation for their participation There39s certainly enough money to go around According to data from PwC digital ad spending grew more than 12 percent in 2020 despite the massive impacts of the pandemic The top ten ad players accounted for 781 percent of the revenue for 2020 with their portion totaling more than 109 billion Compensation won39t mean the average consumer receives a million dollars for online permissions but they can earn real sums for the sharing of their data Advertisers and marketers will willingly participate in this dynamic because personal data is so valuable and its usage so widespread It39s the basis of opinion polls and scientific research and enables the creation of specialized interest groups for everything from golf to day tradingTechnology is enabling a more transparent advertising ecosystem one that can benefit both consumers and advertisers through a reward system rather than the data exploitation which we39ve known for years Blockchain technology is a trusted tool for issuing digital rewards in the form of cryptocurrency And the ability to issue a desirable reward is essential for those who want to succeed in the next era of digital advertising amp8211 ie the permissionbased era Brands and developers must ask for permission to interact with consumers in exchange for their data and they need to be prepared to reward them for sharing that data amp8211 this is the equitable and right thing to doAsking Permission and ZeroParty DataMarketers are at a crucial moment and have an opportunity to build trust with their audiences through consent A permissionbased advertising structure is the next generation of internet advertising driving value exchange for both parties amp8211 it will be the Win Win WebAdvertisers win by knowing what customers intend to do or buy in the future by collecting zeroparty data ie data that is intentionally and proactively shared directly by the consumer By simply asking permission and compensating users for sharing their engagement consumers will willingly and intentionally share their data enabling advertisers to build direct relationships with consumers and in turn better personalizing their marketing effortsA compensationbased arrangement adds meaningful consent to an exploitative economy It shifts data ownership back to the individual and gives advertisers higher ROI The end result is a change from the longstanding business model that only benefits the biggest tech companies to one that fulfills the early promise and equitability of the internetThis article was originally published in MarTech Series on August 13 2021Click the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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The Future of Permission-Based Marketing and Advertising

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Charlie Silver

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The Future of Permission-Based Marketing and Advertising

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