In today’s digital landscape, first-party data has become a crucial asset for businesses seeking to understand and engage with their customers effectively. However, incorporating a robust first-party data strategy requires the collaboration and support of various departments within an organisation. One key department that often puts up a challenge in embracing and fully utilising first-party data is the legal department. In this article, we will explore the importance of first-party data, the hurdles faced by legal departments, and potential solutions to align them with a first-party data strategy.

The significance of first-party data

First-party data include valuable information collected directly from (potential) customers, such as but (not limited to) first-party cookies, email addresses, phone numbers, and address details. In this article we will focus on the non-cookie part of first-party data as this can go beyond the limitations of cookies and allows for enhanced personalization and targeting across platforms. For digital marketing purposes, this data is often used in customer lists (Meta), customer match (Google & Microsoft), contact targeting (LinkedIn) and CRM matching (DPG). Its value lies in getting deeper insights into how your ideal customer in that specific channel looks like or is interested in, and of course in targeting or excluding them non-cookie based. It nowadays works in many channels as a seed audience where you tell the ad system to find more of these great customers.

Challenges faced by legal departments

While legal departments are well-grounded in navigating consent requirements for cookie-based data collection, the usage of customer match or customer lists on platforms like Google, Meta, and other advertising platforms poses a significant challenge. Legal teams often lack clear guidelines and insights on how first-party data like email addresses, can be used for advertising purposes, leaving marketing efforts hindered by a lack of permission to share data with tech giants. They often also lack a clear understanding of what is happening in the digital marketing ecosystem with third-party cookies disappearing and first-party cookies being less usable. However marketeers on the other hand are not well enough aware of how this data can legally be used in a transparent and privacy friendly manner. It is not the plug-and-play solution the tech giant might want you to believe. You need a proper data collection, consent and preference management in place before you can start with using customer match solutions in advertising, as in the end you are sharing PII data (although hashed) with Google, Meta, Microsoft and others.

Finding solutions with a first-party data strategy

To bridge the gap between marketing and legal departments, a well-thought-out first-party data strategy is essential. This strategy should outline data collection, CRM and CDP tooling, consent and preference mechanisms, and usage guidelines that address legal concerns and provide clarity on risks, benefits, and necessity. By involving both legal and C-level executives in the decision-making process, a comprehensive and widely supported strategy can be developed that supports the essential marketing use cases for measurement and targeting.

The role of Artefact consultants

Artefact, with its expertise in digital- and data- marketing, is able to play a crucial role in navigating the complexities of a first-party data strategy and to get from strategy to implementation.
By leveraging the knowledge and expertise of our marketing consultants in media and martech with our data engineering specialists we deliver custom made data strategy from collection to use case development. Our strategy and change consultants oversee the development and execution of a holistic data strategy that aligns with legal requirements and all internal stakeholders. This collaborative approach ensures that all stakeholders are involved and working towards a shared goal.

Looking ahead to your first-party data strategy

The importance of a robust first-party data strategy is set to increase even further in the future. While legal challenges persist, businesses need to prioritise getting consent and preference in order. By proactively addressing legal concerns and working together to develop a compliant data strategy, organisations can unlock the full potential of their first-party data.

Conclusion

Integrating a first-party data strategy requires close collaboration between marketing, data, crm and legal departments. By developing a comprehensive plan that addresses legal concerns and involving key stakeholders in decision-making, businesses can navigate the challenges and reap the benefits of a data-driven approach. With the right approach and support from experts like Artefact, organisations can ensure they are leveraging their first-party data effectively and ethically in the ever-evolving digital landscape.

Want to learn more about effectively using your first-party data? Check out our other article: Accelerate your global first-party data strategy by standardising data measurement and consent.

Contact us via floris.fontane-pennock@artefact.com to discuss your business opportunities.