First-Party Data For Long-Term SEA Success

The digital marketing landscape is constantly changing. In recent years in particular, the way companies collect and use data has changed dramatically. In the wake of increasing data protection regulations and the imminent abolition of third-party cookies, it is more important than ever for companies to rely on their own customer data. With a well thought-out first-party strategy, companies gain valuable insights into their target groups and remain less dependent on external platforms such as Google. This allows advertising campaigns to be managed in a more targeted manner and sustainable SEA successes to be achieved.

First-party data is information that a company receives directly from its own customers or users. This data comes from sources such as the company's own website, app, social media channels or direct conversations with customers. It is particularly valuable because it provides accurate and up-to-date insights into the behavior, preferences and needs of the target group.

This contrasts with third-party data, which is purchased from external providers. This data is often less precise or even outdated. Due to stricter data protection regulations such as the GDPR and the abolition of third-party cookies by Google, it is becoming increasingly difficult to access these external data sources.

If you want to continue running successful SEA campaigns, you have to rely on a first-party data strategy. This enables:

• Independence from Google: Those who rely on their own customer data are less reliant on external platforms.

• Higher data quality: First-party data is more precise and more up-to-date than third-party data, which enables a more targeted approach to the target group.

• Better performance thanks to smart bidding: Smart bidding strategies benefit considerably from high-quality data.

Smart Bidding is a Google Ads feature that uses machine learning to automatically optimize bids and achieve campaign goals efficiently. Precise and high-quality data is crucial for this system to work. In this context, your own customer data is of enormous importance. It enables a much more precise target group approach and more precise control of the ads. For example, companies can use it to find out which products or services are particularly popular with which customer groups. In this way, marketing measures can be specifically adapted to the needs of the target group.

By integrating first-party data into the smart bidding process, companies can significantly increase the performance of their SEA campaigns. This is because the more relevant data is available, the better the algorithm can make informed decisions and optimize bids accordingly. Here are some of the benefits of using your own customer data:

• Higher conversions: By incorporating your own customer data, Google Ads can identify patterns in user behavior and use them specifically for bid optimization.

• Better segmentation with Customer Match: With Customer Match, target groups can be defined based on your own data. This allows advertisements to be targeted at existing customers or similar users.

• Dynamic bid adjustments: Google Ads can use more precise signals for bidding with first-party data, e.g. from purchase history or website interactions.

• Audience strategies for sustainable success: The combination of customer match, remarketing lists and lookalike audiences leads to an even more efficient approach to the target group.

With Customer Match, companies can upload their own customer lists to Google Ads and display targeted ads to these users. However, to take full advantage of this feature, a well-thought-out audience strategy is crucial. Here are some of the best ways to optimize SEA campaigns using your own customer data:

• Segmentation by purchase history & engagement:

  • Existing customers: Exclusive offers for loyal customers.

  • Shopping cart abandoners: Retargeting ads for users who have not completed the purchase process.

  • High-value customers: Higher bids for users with high customer lifetime value (CLV).

• Lookalike audiences for new customer acquisition: Google can identify similar user groups based on existing customer data and thus target new potential customers.

• Combination with smart bidding:

  • tROAS (target Return on Ad Spend): Bids based on customer value and conversion probability.

  • tCPA (target Cost per Acquisition): Optimization of bids based on previous conversions.

  • Maximize Conversion Value: Adjustment of bids to maximize sales.

By combining these strategies with Smart Bidding, SEA campaigns can be made significantly more efficient and their success increased in the long term.

Companies that rely on their own data are less dependent on Google and other large platforms. The growing importance of data protection and the end of third-party cookies will make it more difficult to access external data sources in the future, which could restrict companies in their marketing strategy. However, those who have developed a solid first-party data strategy are less susceptible to these changes and can continue to place targeted and efficient ads. In addition, this strategy enables sustainable and long-term customer loyalty.

You need the right tools to make optimum use of your own customer data. Customer relationship management systems (CRM) and analysis platforms help to evaluate collected information in a structured way. Companies that specifically integrate their data into such systems can develop personalized campaigns and respond more specifically to their customers' behaviour. This not only improves advertising, but also the overall customer experience.

The key to successful data usage lies in the correct collection and analysis. Companies should create targeted incentives so that users voluntarily disclose information - for example through exclusive content, discounts or personalized offers. At the same time, transparency is crucial: Customers need to understand the benefits they receive by sharing their data. Communication based on trust strengthens customer loyalty and ensures long-term success.

Companies that use first-party data effectively secure a competitive advantage in the long term. Those who invest in a data strategy at an early stage can:

• Reduce advertising costs through more precise and targeted ads

• Manage campaigns more efficiently thanks to detailed target group analyses

• Build sustainable customer loyalty through personalized offers

From 2025, it will be increasingly difficult to successfully advertise and build sustainable customer relationships without a well-developed data strategy. Building a robust infrastructure based on first-party data will be crucial to remain competitive in the long term.

Do you need support in developing a sustainable data strategy? We at projx are happy to provide you with our expertise and help you to exploit the full potential of your own customer data. Contact us at info@projx.de and make your digital marketing future-proof!