The importance of first-party data in marketing and why CMOs should invest in a marketing data warehouse

Transcript

Edward Ford:
All right, we're back for another episode of The Marketing Intelligence Show, and it's a very special episode as we're joined by the original host of the podcast, Anna Shutko, a data analytics consultant at Supermetrics. Anna, it's great to have you back on the podcast as a guest.

Anna Shutko:
Thank you so much for having me. I'm thrilled to be here as a guest this time. It's an exciting new role for me.

Edward Ford:
Yes, you're on the other side of the microphone this time.

Anna Shutko:
Indeed.

Edward Ford:
Today, we're delving into the significance of first-party data in marketing, a topic gaining considerable attention. To begin, what's motivating marketing teams and CMOs to take ownership of their data?

Anna Shutko:
An excellent starting point. We've been observing a couple of industry trends concerning tracking, marketing measurement, building a marketing data warehouse, and the imperative to own data. First and foremost, everyone is discussing it — cookies are vanishing. While we lack a precise timeline from Google regarding this transition, it's undeniably occurring. Platforms are increasingly stringent about cookies and information recording. As a result, the emphasis on first-party data is paramount.

The second trend revolves around more stringent regulations. GDPR has been in effect for several years, and numerous regions around the world are adopting stricter data handling regulations. Given the growing emphasis on privacy and regulatory compliance, it's imperative to reevaluate how we manage and store data gathered in our marketing endeavors.

A third significant factor is the restricted access to historical data. Platforms like Google Analytics have shifted to new versions, thereby limiting data access. We need to establish systems for recording and storing data from these platforms to ensure access to historical data, as some may eventually be lost over time.

This isn't limited to Google Analytics — platforms like Facebook and StackAdapt also limit access to historical data. Most of these limitations allow data access for approximately one and a half to two years. That's why preserving historical data is a prudent practice.

Edward Ford:
Indeed, the absence of cookies, the heightened focus on privacy and regulatory compliance, and the restricted access to historical data are compelling marketing teams to embrace a first-party data strategy. There are certainly significant challenges to address. Now, let's explore the benefits of taking ownership of your marketing data. What can organizations achieve with this approach?

Anna Shutko:
Certainly, there are numerous advantages to owning and managing your marketing data. First, it significantly enhances attribution modeling, enabling you to accurately calculate ROI and present the relationship between clicks, conversions, and sales with greater confidence.

Secondly, it bolsters data governance and security. Storing data in a compliant data warehouse, such as Google Cloud, ensures that your data is handled securely and minimizes the risk of data breaches or human errors.

Scalability is another advantage. A data warehouse accommodates growing data volumes and allows reporting at a higher granularity, such as individual keyword performance.

Furthermore, it offers customization options. By using SQL for data transformations, you can conduct more intricate analyses and delve into predictive analytics.

In summary, a marketing data warehouse provides improved attribution modeling, enhanced data governance, scalability, customization, and advanced reporting capabilities.

Edward Ford:
Excellent points. So, what should CMOs and marketing leaders consider when transitioning to a data warehouse?

Anna Shutko:
When embarking on the transition to a data warehouse, CMOs and marketing leaders must consider several crucial factors. Firstly, ensure that you have someone on your team with expertise in data engineering or data analytics to manage the technical aspects.

Secondly, clean and organized data is imperative. Establish clear naming conventions and delineate responsibilities within your team to prevent duplicate entries and ensure everyone comprehends the collected data.

Lastly, review your marketing strategy. A well-structured marketing strategy is essential for accurate data collection and reporting. Ensure that you clearly understand what you aim to achieve with your marketing activities.

Edward Ford:
Absolutely, it's all about alignment, governance, and strategy. Now that we have the data warehouse up and running, how do you ensure that it's utilized correctly to maximize its potential?

Anna Shutko:
To harness the full potential of your data warehouse, you must ensure data quality and adhere to strict rules. Maintain clean data, adhere to clear naming conventions, and eliminate duplicate entries.

Remember the saying, "garbage in, garbage out." Data should accurately reflect your business, so maintaining clean and well-organized data is crucial for successful transformations and reporting.

Edward Ford:
That's an important reminder. Lastly, Anna, you were the original host of this podcast for over 50 episodes. What are some key takeaways from these discussions over the years?

Anna Shutko:
Over the course of those 50 episodes, I've learned that every marketer, including CMOs, should possess a basic understanding of data handling. Familiarize yourself with data definitions and how platforms calculate metrics. It's crucial for effective communication.

Additionally, broaden your knowledge beyond your specialization. Learn about different aspects of marketing to tell a comprehensive story in your reports. Curiosity and continuous learning are key.

Lastly, podcasts like The Marketing Intelligence Show are excellent resources for learning and staying updated with industry trends.

Edward Ford:
Well said, Anna. It's been fantastic to have you back on the podcast.

Anna Shutko:
Thank you for having me.

Edward Ford:
Alright, let me stop the recording.