Digital marketing is undergoing a dramatic shift. With privacy regulations like GDPR and CCPA, marketers can no longer rely on third-party cookies. Privacy-First Marketing is now a prerequisite. A recent BCG and Google study highlights the need for privacy-first marketing, showing that proper data privacy strategies build consumer trust and loyalty, and improve marketing results. But how can digital marketers and businesses understand customer behavior across devices without compromising user privacy. Microsoft has the answer. It is redefining cross-device tracking in this privacy-first world with a new suite of tools and technologies.
What is Cross-Device Tracking?
Cross-device tracking refers to the ability to understand how a single user interacts with a brand across their various devices (smartphone, laptop, tablet, etc.). It has long been the foundation of effective digital marketing.
Cross-Device Tracking enables marketers to:
Measure campaign effectiveness
Cross-device tracking enables marketers to monitor user interactions across multiple devices. This provides a comprehensive view of the customer journey across touchpoints, and enables marketers to accurately attribute conversions and assess marketing campaign effectiveness.
Personalize experiences
With cross-device tracking marketers can understand user behavior across devices. This facilitates the creation of personalized marketing strategies and helps deliver targeted ads and tailored content to users. A survey by eMarketer found that personalized marketing, facilitated by cross-device tracking, increases user engagement by up to 5 times.
Optimize spending
Tracking user behavior across devices helps digital markets to understand which channels and devices drive the most valuable actions. This enables them to plan marketing budgets effectively and ensure the ad spend is allocated to the most effective channels.
However, with the demise of third-party cookies, which were once the primary tool for cross-device tracking, digital marketers are in a fix. This, coupled with stringent privacy regulations make it almost impossible to maintain a holistic view of customer behavior. This is where Microsoft’s new approach to cross-device tracking paves the way for effective privacy-first marketing.
Microsoft’s Privacy-Preserving Approach to Cross-Device Tracking
Microsoft has emerged as a key player in this space, offering a range of solutions designed to address the cross-device tracking challenge in a privacy-compliant manner:
Enhanced Identity Solutions
Microsoft leverages its vast ecosystem, including Windows and Microsoft accounts, to create persistent, privacy-preserving identifiers. This allows for user recognition across devices without relying on third-party cookies.
Differential Privacy and Federated Learning
These cutting-edge technologies enable Microsoft to analyze user data and derive insights without accessing or storing personal information:
Differential privacy
This framework adds “noise” to individual data points, making it impossible to identify specific users while still allowing for aggregate analysis.
Federated learning
This approach trains AI models on decentralized data sets (like individual devices), and enables gathering insights without data ever having to leave the user’s device.
Consent Management Tools
Microsoft provides robust tools to help businesses obtain and manage user consent for data collection. This ensures compliance with privacy regulations like GDPR and CCPA.
Unified Advertising Platform
Microsoft Advertising offers a platform that aims to provide a unified view of customer behavior across devices, even with the limitations on traditional tracking methods.
How Microsoft’s Approach to Cross-Device Tracking Facilitates Privacy-First Marketing
Microsoft’s approach has significant implications for both marketers and users:
For Marketers
These tools offer a potential lifeline for marketers seeking to maintain effective tracking across devices in a privacy-focused world. They can gain valuable insights into customer behavior, measure campaign performance, and deliver personalized experiences without compromising user privacy and trust.
For Users
Privacy-preserving tracking methods like differential privacy and federated learning empower users to control their data while still enjoying relevant advertising and personalized online experiences.
Challenges in Microsoft’s Approach to Cross-Device Tracking
While Microsoft’s approach is promising, the journey towards privacy-compliant cross-device tracking is ongoing. Some key challenges include:
Transparency and Education
It is crucial for Microsoft and the industry as a whole to be transparent about how these new tracking methods work and how user data is used. Educating users about the benefits of privacy-preserving technologies is essential for building trust.
Maintaining User Control
Users should have granular control over their data. They should also be able to easily opt-out of tracking if and when they choos to do so.
Adapting to the Evolving Landscape
The world of privacy is dynamic, with new regulations and technologies constantly emerging. Digital marketers need to stay informed and should be able to adapt their strategies to evolving needs.
Microsoft’s initiatives are just one part of a larger industry-wide effort to navigate the cookieless future. First-party data strategies, contextual advertising, and privacy-preserving cohorts are also gaining traction. As the digital world moves towards a more privacy-centric model, collaboration and innovation will be key to finding solutions that benefit both businesses and users.