December Spotlight: New Year, significant new opportunities for telcos and the ongoing hunt for a replacement to third-party cookies

December Novatiq Spotlight

2022 is drawing to a close, and the holidays are all but here. But before we down tools for a well-earned break, there’s just time for one last edition of Spotlight.  

Missed our November newsletter? You can read it on our blog here.

What we have for you today: New business models for telcos, the ongoing hunt for a replacement to third-party cookies, and what may be a game-changing regulatory decision for securing consented data. 

How telcos can take advantage of new business models 

First up we’re talking telco, with EY forecasting that one of the biggest risks for carriers next year is their inability to realise revenues from new business models based on IoT and the cloud. EY claims that this is in part due to a disconnect between what enterprise customers want and what telcos are currently offering. 

Our view is that 2023 will also bring with it a significant opportunity in the form of 5G. With 5G, telcos will be able to push a higher volume of transactions through the network, enabling a new range of service-based propositions in adjacent markets. Such approaches, not least offering telco-verified IDs for the digital marketing ecosystem, will connect with enterprise needs and help to drive shareholder value. 

Replacing third-party cookies: the debate rumbles on 

Telco-verified IDs are, of course, a solution to the need for privacy-first IDs once third-party cookies have finally been phased out. This month saw more discussion about potential alternatives including influencer-based marketing, where brands can market to followers of a relevant influencer, and Customer Data Platforms, which seek to unify customer data for a complete profile (more on this below).  

There are so many potential replacements on the market that publishers, advertisers, and agencies will be spoilt for choice. Indeed, it’s likely that they will not need to choose, instead using a combination of IDs to secure the scaled audiences they need. That certainly is the view being expressed more and more by marketing experts. For this approach to work, publishers and brands will need to be able to bring different IDs together in an interoperable platform that can work seamlessly with programmatic infrastructure.  

An end to consent through authentication? 

One way that larger publishers and digital platforms have looked to enable privacy-compliant engagement is to use the consented data of authenticated users (i.e., those that have logged on to their platform). However, it’s possible that this approach will not hold water with regulators.  

A Reuters source familiar with a confidential EU privacy watchdog decision has claimed that Meta will be told that it cannot run advertising based on personal data and will need users’ consent to do so.  

If this proves to be the case, it has enormous consequences as it effectively means that major tech platforms will need to put in place a consent mechanism like the CMPs used by publishers if they are to collect customer data. CDPs will have a similar issue, as consent will be required for brands to use every specific instance of customer data.  

Suddenly, the availability of data from the authenticated web looks shakier. Sourcing privacy-first data from the open web is therefore more important than ever. 

Service, not spam 

In the face of all these challenges, you would forgive some brands and agencies for moving away from personalised advertising and returning to the days of “pay and spray.” However, to do so would be to deprive consumers of something they clearly want. A new retail-sector survey has found that although consumers are concerned about privacy, 66% of consumers prefer to buy from stores that know them and their preferences and 60% agreed that relevant product recommendations were important to them. 

People clearly appreciate relevant services and experiences, not the spam of old. Regardless of what happens with third-party tracking cookies, advertising is not going to disappear from the internet. What’s important is that it is privacy first and focused on delivering great customer experiences.  

Consent in the age of AI 

Finally, the internet was awash with stories of ChatGPT – the best conversational AI to date. The Drum included an interesting interview with the AI, which includes the question: “should AI be used in advertising?” The chatbot’s answer was equivocal but included the crucial point: “ using AI in advertising can raise concerns about privacy and the use of personal data.” 

The big question here is around consent. The accuracy of AI is dependent on the scale of the dataset: the more data, the greater the accuracy. This approach runs counter to the trend in customer data, where brands are increasingly advised to collect only what they need and to secure it with strict controls. It remains to be seen whether AI marketing applications can be practical in a world where privacy is king. 

More from Novatiq 

This month, Novatiq’s team has been hard at work producing a new video that outlines our approach and how it builds exceptional customer experiences online (service not spam). Check it out here. 

As always, if you’re looking for more stories, thoughts, and comments on all things related to digital marketing then please drop by our blog. This month, we’re looking at performance, personalisation, and privacy as the three cornerstones of modern digital marketing.  

Enjoy the holidays and see you next year! 

 

Share this post

magnifiying glass icon

Ready to learn more?

illustration-pattern-4
Sign up for exclusive data intelligence tips

Grow your knowledge.
Subscribe to Spotlight.