Observed Signal · Apr 11, 2023 · Editorial · Source: CMSWire · Impact: 3/5 · Sentiment: Positive
First-Party Data Builds Customer Trust Amid Privacy Rules
This CMSWire feature explores how marketers can leverage first-party data to build customer trust in an era of tightening privacy regulations and rising demand for personalization. Citing Gartner, the article notes that by 2024, 75% of the global population will be covered by data privacy laws, while 65% of customers seek more personalized experiences. Experts from McKinsey, Deloitte Digital, and Customer.io discuss the need for transparent data practices, value exchange, and a data relationship management (DRM) framework. Deloitte research shows over 50% of consumers find personalization off-target, and IAPP data indicates only 29% understand how companies use their data. The article recommends creating data preference centers, communicating regularly, and avoiding oversharing to foster trust and competitive advantage.
Provides strategic guidance on first-party data and privacy, directly relevant to AdTech/MarTech professionals navigating cookieless future and privacy regulations.
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Key Takeaways & Evidence Grounding
- Gartner predicts 75% of the world's population will have personal data protection by end of 2024.
- 65% of customers want more personalized experiences from brands.
- Deloitte Digital survey found over 50% of consumers felt personalization was off-target.
- IAPP study shows only 29% of customers understand how companies use their data, and 68% are concerned about online privacy.
- McKinsey recommends a data relationship management (DRM) practice with four pillars: invitation, data security, ongoing dialogue, and value proposition.
Connected Companies & Entities
7 Entities mapped“According to the technology research firm Gartner by the end of 2024, 75% of the world's population will have its personal data protected by...”
“Kelsey Robinson, a senior partner at McKinsey, said, 'It's much more limited now, both in terms of how you can get that data, how you can us...”
“Leala Shah Crawford, managing director of Deloitte Digital, said many brands treat data as transactional and rely too heavily on retargeting...”
“Nat Onions, vice president of customer experience at customer engagement platform provider Customer.io, suggested thinking of the customer l...”
“Things like free shipping (which Amazon leveraged to great effect but is now ecommerce table stakes) also remain popular....”
“If I opt-in for Dick's Sporting Goods' emails ... that doesn't mean that I'm signing up for Nike to start emailing me....”
“If I opt-in for Dick's Sporting Goods' emails ... that doesn't mean that I'm signing up for Nike to start emailing me....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Verndale Launches AI Visibility & Content Supply Chain Services
Verndale, a digital consultancy, has introduced new services to help marketers measure and improve their brand's visibility in AI-generated answers. As AI assistants like ChatGPT and Google's AI Overviews increasingly influence research and buying decisions, brands need to know whether they are mentioned, recommended, and correctly described in these responses. Verndale's services include an AI Visibility assessment that tests real audience questions across major AI platforms, identifying gaps in brand mentions and citations. They also offer an AI-Ready Content Supply Chain Assessment to optimize content operations for AI-era discoverability. The company cites research from SparkToro showing 68% of Google searches end without a click, and Gartner reporting 45% of B2B buyers use generative AI for purchase research. A case study with Quinnipiac University demonstrated significant improvements in content optimization and AI readiness through governed agent workflows.
OK Future's AI 'Pressure Cooker' Campaign for Goodwipes
Former MullenLowe U.S. CEO Frank Cartagena launched creative shop OK Future to test generative AI's potential for a small agency. Their first project, a spoof of OpenAI's Astra ad for personal hygiene brand Goodwipes, was produced in four days using AI tools like ArtCraft, Seedance, and OpenAI's Astra model, cutting projected production costs from $700,000. The campaign, 'Meet Asstra,' gained over 1.5 million views on Reddit. However, Cartagena described the pace as 'unsustainable' and a 'pressure cooker,' with team members working around the clock and even threatening to quit. Goodwipes' SVP of Marketing, Meredith Diehn, emphasized trust in Cartagena and the value of experimenting with AI. The article highlights the growing use of AI in creative production, with 73% of marketers using GenAI for visual content and Gartner forecasting AI software spending to reach $981 billion by 2029.
AI Startups Face Pricing Power Squeeze from Model Suppliers
An analysis by Trending Topics highlights a structural challenge for AI startups: they often act as token resellers with thin margins, akin to middlemen, rather than classic software businesses. Using a fictional sports app example, the piece illustrates how costs for app store fees, token consumption, and free-tier AI features can erode profits. Citing a market study, it notes inference costs average 23% of revenue for scaling AI firms, with gross margins around 52% versus 78-80% for traditional SaaS. The article discusses how providers like OpenAI and Anthropic hold pricing power, and some startups, like Cursor, invest heavily in own infrastructure to reduce dependence, though this is often not feasible for most. Neoclouds are seen as not solving the fundamental dependency issue. However, a counterview suggests that rapidly falling inference costs could improve margins, and AI-native startups have already captured significant market share in some segments. The piece concludes with strategic advice for startups to focus on proprietary data, workflow integration, and cost optimization.
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