The advertising world is seeing a wave of disruption over the past few years led by changes in the marketing approach.
The new norm is “the age of the customer,”.
So brands are showing agility in adapting to new techniques to seize better opportunities in thriving in the rapidly changing digital ecosystem.
They want to eliminate the guesswork from digital media and desire precise targeting of people across all platforms to scale up their business.
Brands want to know everything about their customers from transactional history to interests.
This has led to the inevitable evolution of people based marketing beyond traditional cookie-based marketing techniques.
Along with these, there are a variety of other factors, let’s have a look at them.
Compelling reasons for the shift towards people based marketing from cookie-based marketing
1. Improved customer identification
Consumer attention is more fragmented than ever before; they are hopping from one device to another and are using multiple devices for purchases.
In previous times, internet usage was only limited to desktop computers.
Hence, targeting customers through devices based on cookies was prevalent.
But since mobile phones became the primary device, tracking cookies started to become difficult.
Cookie id was expiring anytime; cookies history were being deleted, eventually leading cookie-based marketing to fade away.
Everyone and anyone got disparate messages based on the data collected.
This created an urge to find a solution whose focus was to target people to avoid inadequacies in advertisements.
People-based marketing came to the rescue.
Here the multiple interactions of the customer are recorded and linked together to get a single customer view for enhancing business strategies.
So, even if a unique cookie id expires, brands have other connected cookie id that can identify the same customer.
2. Precise segmentation
Segmentation opens the door for marketers to deliver personalized content as you get to know about the customer in details.
It is an excellent foundation for understanding who the customers are, what are their preferences, how they interact with your brand.
So that each customer is delivered personalized messages relevant to them.
They experience an interaction that caters to their unique preferences and needs.
In cookie-based advertisements, the segmentation is done in a broader range, with more emphasis on the quantity of data that can be collected.
But with the advent of people based marketing, connecting the dots across multiple consumer interactions and providing each customer with a personalized experience through every possible channel is possible.
It makes the brand recognizable and increases the chances of capturing their attention and the conversions you crave.
3. Enhanced real-time customer engagement
With cookie-based targeting, it was not possible to understand where the customer is present, or which channel he prefers.
The customer is re-targeted only at a singular device where he is searching.
What if the user switches to some other device?
It is all about reaching the right audience at the right moment and at the right device through meaningful interactions, increasing the chance of retaining them.
In people based model brands know when the customers are paying attention to what they have to say by seamlessly integrating all the channels.
This will guide brands to comprehend the customer journey and motivate them to purchase as the moment arrives to make a final decision.
4. Deeper insights
The problem with cookie-based modelling is, customers, got irrelevant ads across their devices.
Cookies can’t determine whether the customers have been to physical stores; thus, brands trigger ads to also those people who have already purchased.
Switching to people based marketing will allow brands to gain access to more transparent data for better optimization.
But for that, they have to combine the first party data along with data gathered from third-party channels.
To help them in the process, they need to partner with a data onboarding platform.
The valuable insights they will be getting regarding frequency management and campaign performance will let brands target interested customers with a more one-on-one approach.
5. Increase in ROI
Cookie-based targeting is a probabilistic approach.
It is very much different than people based concept, which is a more efficient, first-party deterministic approach.
Through people based marketing brands will unlock a single view of consumers, which was not achievable through cookie-based targeting.
Have a look at this example.
Mapping a customer to get a holistic representation.
Subsequently, brands can automate their marketing approach across all devices and all channels under a single cohesive marketing strategy.
Hence the chances of less data loss are there because leveraging data in marketing will help brands decide where to focus on marketing spend.
Moreover operational costs lowers bringing in a positive impact on the revenue.
Wrapping it up
Cookie-based marketing is an old technique that fails to target consumers with the right message at the right place and at the right time.
Whereas, people-based marketing, is the ability to perform targeting and measurement at the level of real individuals by resolving customer identity across all digital and offline channels.
This concept has recently been trending, and implementing people based marketing is not only helping marketers but also advertisers in the long run.
Brands are developing better relationships with audiences on the foundation of accurate insights.
Thus shifting away from the unreliable approach of cookie-based marketing makes it possible for marketers to transform their business into a whole new level.