As data privacy, or Data Privacy, becomes a global concern, coupled with laws like GDPR in Europe and PDPA in Thailand, businesses and marketers can no longer rely on Third-Party Data. Therefore, when running PPC campaigns, we need to adjust our measurement strategies in an era where consumers prioritize privacy, especially by utilizing First-Party Data to cope with this change.
What is First-Party Data?
First-Party Data is data that organizations or businesses collect directly from customers or users. This type of data is highly reliable and very beneficial for understanding customers. First-Party Data can be collected from various channels, such as brand websites, applications, emails, form submissions, or even purchases in stores through POS systems. Additionally, this data may include website visit information (Cookies), purchase history, and personal information provided by customers, all of which can be used to improve marketing strategies and create a better customer experience.
- Start by logging into your Google account and going to Google Analytics
- Create a new Property by clicking “Admin” and then selecting “Create Property”
- Select the Property type as “Web” for websites or “App” for applications
- Fill in the necessary details about your website or app completely
- After creating the Property, you will receive a Measurement ID, which has the format G-XXXXXXXXXX
- Install this Measurement ID on your website using two main methods: installing via Google Tag Manager, which is suitable for those who want flexibility in managing tags, and installing directly on the website by adding the gtag.js code to the <head> of every page on the website
- Finally, verify the installation using Google Tag Assistant to ensure that GA4 is working correctly
Once installed, wait a moment for GA4 to start collecting data. Then, we can start using the various reports.
Why Adjust PPC Measurement Strategies?
Over the years, we have seen changes in the online world, especially regarding user privacy. These changes directly affect how data is collected and used in PPC advertising. A clear example is Google’s announcement to phase out Third-Party Cookies on Chrome by 2025. Although the deadline has been postponed several times, it is a clear signal that the industry is moving towards an era that does not rely on third-party Cookies to track user behavior.
In addition, Apple’s policy changes on iOS 14.5 and above, which require applications to request user permission before tracking usage data, have significantly impacted advertising on various platforms, particularly Facebook, which has seen a significant decline in ad performance.
At the same time, stricter data protection laws, such as GDPR in Europe and PDPA in Thailand, require businesses to obtain consent from users before collecting and using personal data, making it more difficult to access user data for marketing purposes.
These changes require marketers to find new ways to measure and improve the effectiveness of PPC campaigns without violating user privacy. This is where the importance of First-Party Data and new measurement strategies comes in.
Introducing PPC Measurement Strategies with First-Party Data
To adapt to these changes, digital marketers need to adjust and modify PPC campaign measurement to effectively develop campaigns.
1. Focus on Collecting and Utilizing First-Party Data
Creating an efficient data collection system on brand channels is the first priority. This includes developing websites and applications that can collect important data completely. You may use tools like Google Analytics 4 (GA4), which focuses on using First-Party Cookies to track user behavior.
In addition, developing membership programs or loyalty systems is another good way to collect data, such as offering discounts or privileges to members. This not only gets high-quality data but also helps build good relationships with customers in the long run.
2. Use Media Mix Modeling (MMM) Techniques
Media Mix Modeling (MMM) is a method of analyzing the impact of various marketing activities on sales or business goals without relying on personal data. This method uses macro-level data, such as budgets spent in each channel, total sales, and other external factors, to create statistical models that explain how each channel contributes to sales.
In other words, MMM helps marketers understand the overall effectiveness of PPC campaigns without relying on tracking individual user behavior, which is ideal in an era where accessing personal data is becoming increasingly difficult.
3. Conduct Incrementality Testing
Conducting Incrementality Testing is measuring the ROI of PPC campaigns by comparing results between groups that saw the ads and those that did not. This method helps marketers understand whether ads are producing real results, rather than just measuring ROI from customers who would buy the product anyway.
To start conducting Incrementality Testing, you can divide the target audience into two groups, one of which will see the ads, while the other will not. Then, measure the difference in Conversion Rate between the two groups. This method helps us see the true impact of advertising, even if we cannot track the behavior of individual users. Those running ads on Google Ads can start with the Conversion Lift feature.
4. Develop Data-Driven Attribution Models
Using existing First-Party data to create appropriate attribution models for the business is another effective method instead of using ready-made models like Last-Click Attribution, which may not reflect the Customer Journey accurately. Creating a Data-Driven Attribution model will help understand how each touchpoint contributes to conversion. This model relies on analyzing large amounts of data to identify how much influence each point of contact has on the purchasing decision, which will help allocate budgets and improve campaigns effectively.
5. Utilize Conversion API
Many advertising platforms, such as Meta Ads and Google Ads, often have Conversion API features that allow businesses to send important conversion data, such as purchases, registrations, or app downloads, directly to the advertising platform. This method will help increase the accuracy of tracking results and help reduce reliance on user-side tracking technologies that may be blocked by browsers or ad blockers.
6. Focus on Aggregate Measurement
Instead of relying on tracking the behavior of individual customers, focusing on overall measurement is another approach that aligns with privacy trends. For example, Google’s Privacy Sandbox proposes methods for measuring advertising effectiveness without tracking individual users, but using group aggregation instead. This may include using technologies like Federated Learning of Cohorts (FLoC) that group users based on similar interests instead of tracking individual behavior, which helps advertisers target and measure results without violating user privacy.
In conclusion, changes in data privacy may seem like an obstacle, but at the same time, it is an opportunity for marketers to develop new strategies without relying on Third-Party Data by intelligently utilizing First-Party Data, combined with new measurement techniques, which will help us create effective PPC campaigns that respect Data Privacy.
It is important to always keep in mind that adaptation must be continuous because technology is constantly changing. Staying informed and learning new techniques will help our businesses stay competitive in the marketing field.
About Relevant Audience
We are Relevant Audience, a Digital Performance Marketing Agency specializing in SEO and one of the Digital Agency providing comprehensive digital marketing services to support businesses in reaching their target audiences at the right time, place, and device (Right Time, Right Place, Right Device).
Our services cover everything from SEO services, Search Marketing, Social Media Ads, Search Ads to Influencer Marketing, and we are also a SEO Company that is a Google Partner. Our team consists of specialists ready to provide consultation and find solutions that meet business needs.
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