Embracing paid media with first-party data: A guide for CRM Marketers

First-party data is your most valuable asset in a world without third-party cookies and increasing privacy regulations. For you as a CRM marketer, the opportunity lies in moving beyond email and SMS and using paid media channels to expand reach and efficiency. By integrating first-party data with platforms like Google Ads and Meta, CRM marketers can typically achieve 20-25% but up to 50% reduction in cost per acquisition (CPA) and increase customer engagement.

This blog will outline how to start leveraging paid media with first-party data, focusing on easy, scalable actions that pay off.

Why you should think beyond email and SMS

Owned channels like email and SMS are powerful tools but have limits. Paid media offers the chance to build deeper customer relationships and upsell opportunities at different touchpoints and locations. Imagine reaching your customers with personalized video ads or interactive stories on social media, formats that aren’t possible through traditional channels but can significantly increase engagement. Integrating your first-party data into these platforms helps you make every customer interaction count.

In the retail and travel sectors, we’ve seen significant success. For instance, a travel industry company used their first-party data to achieve a 20% decrease in CPA. Another example is how we helped the e-commerce retailer Interflora achieve a 32% decrease in CPA, a 22% increase in frequency, and a 30% revenue uplift by utilizing first-party data and enabling automation.

How to get started with paid media using first-party data

Although software vendors love to sell you new tools, you likely already have the main components needed to succeed in activating first-party data. Consider investing in additional tech stack components only when planning for increased scale or more automation.

Examples of paid media formats you can activate with first-party data:

• Video ads: Great for storytelling and creating deeper emotional connections
• Carousel posts: Ideal for showcasing multiple products or features
• Interactive stories: Perfect for engaging your audience in a more personal way
• Display ads
• Search campaigns

Step 1: Run a few experiments

Start with simple experiments that you can manage manually without additional tools. One retail marketer began by identifying cross-sell opportunities within their customer base. By exposing a defined audience to messaging about other product categories through paid social, they increased average order value by 10%. This initial step used manual, rule-based segmentation with lists uploaded to Meta and Google ad managers.

Step 2: Automate

Once you’ve proven a use case’s effectiveness, focus on automation. Key aspects to automate include:

• Audience definition
• Audience updates
• Content activation

Whether you build automation capabilities on top of your customer data warehouse or opt for a Customer Data Platform solution, design your technical setup with your intended full scale in mind.

Step 3: Scale up the number of use cases

As you expand your portfolio of automated use cases across multiple channels, be prepared to address common challenges:

• Channel silos and siloed targets
• Unclear success metrics
• Difficulty measuring incremental revenue
• Outdated channel role perceptions
• Inconsistent long-term execution

Best practices for success

Organizations that succeed in scaling their first-party data initiatives typically focus on:

• Creating long-term plans and business cases
• Allocating sufficient resources while avoiding single-point dependencies
• Adapting incentives and targets for an automated environment

The path forward

While getting started with first-party data in paid media is straightforward, the real value comes from scaling effectively. Begin with small experiments, automate successful use cases, and methodically expand your program. Remember that while the journey may seem daunting, the potential rewards, including reduced acquisition costs and increased engagement, make it worthwhile.

Don’t hesitate to seek expertise as you navigate this transformation; success often requires collaboration and guidance.