Marketing and business success today is increasingly dependent on data. It allows organizations to achieve mass personalization, optimize campaign performance, gain predictive insights, and enhance customer retention. A well-defined data strategy is critical to achieving this success and remaining competitive in a busy market.
Brian Batenburg, Head of Digital Advertising Sales at The Globe and Mail, spoke on this topic at IAB Canada’s Report on Data 2024 event during the panel discussion, “Getting your data ducks in a row.” The panel investigated how strategists and advertisers should leverage data responsibly and the tools necessary to develop the best data strategy.
Understanding data: why it matters and how to leverage it
Understanding data is just as important as having it, and knowing what purpose you are gathering data for is critical for developing an effective data strategy. David Phillips, Chief Media & Activation Officer at Environics Analytics said, “It’s really important to not start by having a data strategy, but to start by having a strategy and then lining it up with data underneath it.”
The next step is to consider what environment your consumers are in. “Think about what data is available in those environments,” Saad Uddin, Co-founder and CEO at Native Touch, added. This approach is grounded in figuring out what data already exists and leveraging that alongside your own data strategy, and in this way, taking advantage of a more extensive data set overall.
Brian Batenburg noted that knowing what your consumers are doing, where they are, and in what frame of mind they are is a critical component to any data strategy, especially when looking at data points from across different experiences. “The consumer is doing something very specific in that moment that draws a data presence in a very different portfolio at that time,” he said. In other words, meet the consumer in the setting they are in.
First-party data: a critical asset in a privacy-first world
In the age of third-party cookie depreciation and loss of signal fidelity, first-party data has never been more important.
Omair Islam, Senior Solutions Engineer at OneTrust, said, “There’s an ever-evolving privacy landscape. Part of a good data strategy is understanding how do you get that data.” He referenced a Deloitte study, which found that users and consumers were 70% more likely to transact with a brand when the brand delivered personalized content. Islam pointed out that personalization is a powerful tool for connecting with consumers, but he stressed that a robust data consent strategy is crucial for obtaining relevant and secure data.
Batenburg emphasized that fostering open communication with partners about your data goals and ambitions is key to achieving what he calls “data maturity.”
“You shouldn’t be collecting data that you’re not using because it will get you in trouble, and it will set you up for vulnerabilities in the long run,” he said. With the risk of a potential data breach, it’s crucial to establish a robust data strategy from the outset and ensure it prioritizes privacy and consent.
The cost of inaction: passive risk in business
It’s often said that Canadians are risk-averse, especially in business. To challenge this mindset, David Phillips proposed reframing how companies perceive risk. Instead of solely focusing on the risks of taking action, he suggested considering the “passive risks” of inaction by asking, “If I don’t do this, what’s the downside?”
Philips also advocated for a testing approach, where businesses take calculated risks and use evidence to evaluate a strategy’s performance over time, thus reducing the overall risk.
Building on this idea, Saad Uddin highlighted the benefits of a more long-term approach by fostering a “test and learn” culture and nurturing a talent pool that can take advantage of this environment.
Ultimately, both speakers emphasized the importance of implementing a transparent consent program. Companies can mitigate risks by being clear about how data is collected at the time that it’s collected. Transparency also leads to trust with consumers and better overall outcomes, as consumers can get a better and more personalized experience.
Data at scale: a holistic approach
Brian Batenburg highlighted the need to reframe data, privacy, and consent discussions with an enterprise-level perspective. While data impacts individual teams, it is ultimately a strategic asset that must be understood, managed, and leveraged holistically. This requires considering the broader enterprise context rather than focusing solely on isolated components.
While it can be challenging to set up a data strategy that accounts for all these factors, it’s an effort well worth undertaking and one that promises significant and far-reaching rewards.
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