Top Story

Home >> Digital >> Article

Advertisers Look Outwards as FB says No to Third-Party Data

05-April-2018
Font Size   16
Advertisers Look Outwards as FB says No to Third-Party Data

Advertisers are trying to find alternative platforms for sharp targeted advertising ever since Facebook announced that it will be shutting down its Partner Categories feature last week.

Partner Categories was launched in 2013 and enabled businesses that did not have access to customer data outside of Facebook, to create Custom Audiences on Facebook. As Facebook made changes to the various aspects of its platform, advertisers who worked with third-party data partners like Acxiom, Epsilon and Experian, are beginning to look beyond Facebook for solutions, said digital media buyers.

Discontinuing Partner Categories handicaps advertisers who have become dependent on this feature. “Advertisers are asking us to figure out the alternatives and find other platforms for targeted advertising,” said Gopa Kumar, Executive Vice President, Isobar.

Depending on Facebook alone would lead to broad advertising, rather than the kind of personalised and customised advertising that brands are looking for. "Since conventional Facebook ad targeting is aligned with the original ethos of Facebook's consumer privacy and experience as a key approach, it may not be nuanced enough for an aggressive and invasive targeting approach," said Anil K Nair - Managing Partner, L&K Saatchi & Saatchi.

According to Sanjay Mehta, Jt CEO, Mirum India, it is advertisers seeking a niche audience, who will be severely hit because of this move. “For example, if a car maker is looking to promote an SUV, they may look out for platforms, for example - gaming apps, which will offer sharper targeting than Facebook where the carmaker can only achieve broad targeting of a person looking for any four-wheeler, not necessarily an SUV,” he said.

Anil said that e-commerce brands that used third-party data to target on Facebook may be most hit because of this sudden shutdown. Noting that the predominant data set is still FB data, he said, "What will be missing is the insidious black ops data mining that was happening without proper consumer consent."
"Meanwhile, brands who desperately need rich targeting without compromising their privacy and security of their consumers will move to other greener pastures" he further added.

Facebook said in a statement that the feature will be shut down over the course of the next six months. Even though Facebook has provided a buffer, advertisers across categories will find this transition hard, according to experts. “For example, advertisers in the CPG category who need nuanced data like household income or buyer behaviour data will be affected,” explained Kumar. He also added that it will not be easy to adapt, and that finding other options or replacing this data with other data points will take time.

Over the years, advertisers have been heavily invested in third-party data providers. “Of late, many advertisers have been using third-party data. Shutting down this feature will restrict advertisers and sharp targeting will not be possible anymore,” said Kumar. A media buyer who did not wish to be named said that “Advertisers will now have to look at collecting data and developing a database of their consumers.”

When Facebook launched Partner Categories, it promoted the feature as the apt solution for businesses without data on their consumers. Advertisers could “Refine targeting based on information such as offline demographic and behavioural information like homeownership or purchase history,” a Facebook statement had said.

Now, battered by concerns of privacy and data breaches, Facebook is plugging all possible avenues for leaks. Facebook is tightening all the screws to regain the trust of its users and secure the data and privacy of its users. The social media giant in a statement said, “While this is common industry practice, we believe this step, winding down will help improve people’s privacy on Facebook.”

Frequent changes to the Facebook platform have irked advertisers and agencies alike in the past. They find that adapting to these changes to be a task. “Advertisers are cautious about the changes that Facebook is announcing,” said one media buyer, adding that these changes could drive advertisers to look for other platforms to advertise in addition to the tech giants Facebook and Google.

In addition, this will make Facebook’s walled-garden more restricted for advertisers. “I see this as Facebook trying to control and be more restrictive with advertisers. We keep on talking about Facebook being a walled-garden and that is being reinforced with this move,” said Kumar.

Not all is Lost

Sudhir Nair, Managing Director – Digital, Omnicom Media Group, allayed some fears of advertisers. He said that the Facebook environment may still provide sufficient data for targeted advertising on the platform, minus the extra layer of validation from third-party data providers.

“Between the data that Facebook has on its users and the data that it has collected on users over the years based on their interactions with brands, Facebook is still equipped to aid advertisers,” said Mehta.

Going forward, Anil felt that Facebook will work with a more balanced approach which allows for permission-based targeting which then opens ways for effectiveness coupled with ethics.

Tags Data Mining Gopa Kumar Isobar Mirum India Omnicom Media Group Sanjay Mehta Sudhir Nair facebook Cambridge Analytica

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Bharti-Airtel issued a statement claiming the apex court dismissed Jio’s petition granting Airtel a partial reprieve over its IPL advertising campaign

Hareesh Tibrewala explains how Block Chain technology can help monetize your digital footprint, as per your own rules, instead of a 3rd party doing it

Kavinder Singh talks about the brand’s advertising and marketing strategy and tells us how it has has played an integral role in the rise in its standalone net profit to Rs 38.55 crore