Losing third party data will shine the spotlight on Facebook’s own data, writes Total Media’s Celine Saturnino. Expect cobwebs.
Last month Facebook announced that it is no longer allowing advertisers to target against third party data, with the closure of Partner Categories. Given its current reputation this change is a relatively small sign from Facebook that it is recognising the need to rebuild its reputation and consumer trust levels.
But what does the move actually mean for advertisers who work with the platform?
Whilst at Total Media we have seen performance benefits through using third party data sources, this isn’t ubiquitous across all categories. As a result, we will likely see the loss of third party data hinder performance in some cases, but it will be minimal when compared to some of the bigger challenges in market.
What it does mean is that advertisers will be forced to use their own first party data to a greater extent. The impending GDPR legislation will be disruptive for some brands, as this will now be heavily reliant on data opt ins. Some brands will flourish, but it will be a significant struggle for others who already suffer from data scarcity. [advert position=”left”]
Additionally, advertisers will be forced to rely more fully on Facebook’s own data. Negative news stories revealing the inaccuracy of Facebook’s own reporting when it comes to elements such as reach figures indicate that we may see some interesting insights into the relative accuracy of Facebook data, if it is more solely relied upon to deliver performance.
This isn’t the only issue for advertisers, however. Outside of reach figures, we are faced with the problem of the reliability (or lack of) people’s stated interests and activity on Facebook, which can often not be an accurate reflection of the real person.
The truth is that people lie on their social media accounts: a survey by Custard revealed that in the UK 75% admitted to lying about themselves on their social profiles. What we are therefore left with is an inaccurate social profile which in and of itself is less useful to marketers than understanding true personality profiles and behaviours.
Ultimately Facebook’s dominance in the market is driven by scale and performance combined, if this is compromised then it will suffer longer term. We have already seen the hold Facebook has on the advertising industry slip slightly.
Increasing uncertainty around their performance, as well as audience loss, may actually breathe a new lease of life into the market and provide stimulus to those that have otherwise been suffering from the social giant’s dominance.
Celine Saturnino is chief commercial officer at Total Media
