According to thedrum.com, Facebook has decided to no longer allow 3rd party data targeting on their advertising platform. This strategic move is a response to data misuse via Cambridge Analytica. Third party providers like Experian and Axiom will no longer be utilized for targeting users on Facebook, marketers will need to use Facebook’s first party data. So, how does this impact advertisers and the industry?
Advertiser Impact
For many advertisers, the campaign effectiveness of their Facebook campaign will likely not be impacted from the lack of 3rd party data usage. However, some more sophisticated or heavily reliant Facebook advertisers may run into a scale issue. Larger advertisers may exhaust Facebook’s 1st party data and will need to use outside sources to reach their audience. Also, the data change will make it a little more difficult to reach a consistent audience across all platforms.
Advertisers will need to rely on programmatic display and video to extend their message to a 3rd party audiences. Though 3rd party data has its flaws, it is a valuable asset to the marketing ecosystem and allows advertisers to extend their reach and frequency.
Industry Impact
Facebook is already has a walled-garden with their data, so kicking out 3rd party data providers does not solve their data misuse issue. In fact, one could argue that Facebook may become more isolated. Ultimately, it will be Facebook’s responsibility to protect their first party data and allow for a 3rd party verification system to monitor Facebook data usage and advertising measurement.
3 Tips On Navigating this Change
#1 - Evaluate Your Strategy.
Contact your advertising representative to analyze your current social media strategy.
#2 - Consider expanding your ad placement.
Expand your ad placement to other publishers via ad networks and exchanges.
#3 - Look into additional targeting options.
Consider adding 3rd party data capabilities on other platforms.
Still have questions? Our team of digital marketing strategists can help you adjust your Facebook strategy accordingly.
