RESPONSIBLE MARKETING WITH FIRST-PARTY DATA - Think with Google
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RESPONSIBLE MARKETING
WITH FIRST-PARTY DATA
A $200 BILLION VALUE UNLOCK OPPORTUNITY IN ASIA PACIFIC
Covid-19 Prologue and preferences, audience segments and
In February 2020, when this article was due to trends. It can also help the brands to deliver
be published, many parts of the world had al- experiences that demonstrate that they under-
ready started battling the Covid-19 crisis which stand the challenges faced by the consumers
has the potential to change our ways of life for and create messaging that relates to their sit-
a long period of time. While we are working uations. In a world where consumer behavior
hard to fully understand the impact of this glob- is evolving rapidly, brands that are able to
al pandemic on digital marketing, the crisis re- build their first-party data capabilities can
inforces some of the key messages in the article. speed up their journey up the digital market-
ing curve.
With consumers spending significantly more
time on various digital media due to social BCG and Google have collaborated to deep-
distancing, working from home etc., it is im- dive into how brands are using first-party
perative for brands to strike the right balance data and what impact this has on their mar-
- engage with the consumers in a meaningful, keting effectiveness and overall business suc-
personalized manner while maintaining the cess. This study1 aims to help brands unlock
right tone with the continuing need to respect the full potential of first-party data by outlin-
privacy. During this time, brands also need to ing a path to success. The study was conduct-
put conscious efforts in building and retaining ed with participation from over 160 brands
the trust of the consumers through transpar- across 10 industries in the Asia Pacific coun-
ency and data stewardship. tries of Australia, New Zealand, Hong Kong,
India, Indonesia, Malaysia, Philippines, Singa-
First-party data can help brands understand pore, Taiwan, Thailand, and Vietnam.
the breadth and depth of consumers’ interestsIntroduction the consumer journey to achieve business
Digital proliferation in Asia Pacific is hap- outcomes.
pening at an accelerated rate—Asia Pacific
accounted for approximately 70 percent of We also observed that digital maturity var-
the growth in global internet users in 20192 ies significantly with industry type in Asia
and is home to more than half of all global Pacific—Financial Services, Telco & Media,
digital video viewers at 1.4 billion3. Digital, and Travel & Leisure have the highest ma-
hence is emerging as the standard market- turity scores (Refer to Exhibit 1), while in-
ing channel in the Asia Pacific region across dustries like Health & Pharmaceuticals, Au-
the marketing funnel. It is also becoming a tomotive have comparatively lower scores.
significant channel for sales—six of the top Within Asia Pacific, India stands out with
10 fastest-growing e-commerce countries in one of the highest average maturity levels
2019 hail from the Asia Pacific region, led and share of multi-moment brands.
by India and the Philippines (more than 30
percent growth), followed by China, Malay- In our study, we uncovered a consistent
sia, Indonesia, and South Korea4. Asia Pacif- theme that digitally mature brands are in-
ic consumers are increasingly demanding creasingly using first-party data to drive
personalization, they expect brands to con- personalized interactions with consumers
nect with relevant messages at a time and while treading carefully to maintain con-
place of convenience, but at the same time sumer trust. Digitally mature brands who
expect their privacy to be respected. were able to engage with the consumers in
a personalized manner were able to
To capture the nature of digital evolution achieve an average of 11 percent annual
and to help brands realize the full poten- incremental revenue uplift and 18 percent
tial of digital marketing, BCG and Google cost efficiency. The combined value po-
launched an in-depth ‘Digital Marketing tential of incremental revenue uplift
Maturity (DMM)’ study followed by a and cost efficiency that can be achieved
deep-dive into how brands are using leveraging first-party data is estimated
first-party data and what impact this has to be more than $200 billion5 in the Asia
on their marketing effectiveness and over- Pacific markets.
all business success. This study was con-
ducted with participation from over 160
brands across 10 industries in the Asia What is First-Party Data?
Pacific countries of Australia, Hong Kong, We define first-party data as the data that
India, Indonesia, New Zealand, Philippines, a company directly collects with the per-
Singapore, Taiwan, Thailand and Vietnam. mission of consumers. This includes data
about the consumer interactions & pur-
In the Digital Marketing Maturity study, chase behavior (both online & offline) and
brands surveyed were assessed based on helps to deliver personalized experience.
their level of maturity across four distinct First-party data is distinct from consumer
DMM stages: nascent, emerging, connected, or audience data that comes from other
and multi-moment. Brands in the nascent companies or data that comes from exter-
stage deploy marketing campaigns using nal partners without direct consumer rela-
mainly external data and direct buys, with tionships. First-party data sources include
limited linkage to sales. Brands in the browsing behavior on a company’s website
emerging stage make some use of first-par- or mobile app, transaction history from a
ty data as well in automated buying, with CRM database, e-commerce sales, loyalty
single-channel optimization and testing. In program activity, and information about
the connected stage, brands rely on data consumers’ future preferences gathered
(including first-party data) integrated and from surveys, games, and contests. First-par-
activated across digital channels, with ty data can be collected online and offline
demonstrated linkage to ROI or sales prox- and is often combined with other data (fi-
ies. Multi-moment brands optimize dynam- nancial, supply, and sales, for example) to
ic execution across channels throughout inform business decisions.
Boston Consulting Group X Google 2EXHIBIT 1 | There is a Significant Range of Maturity within Industries in Asia Pacific—
Financial Services has the Highest Average Maturity Score
Avg. Maturity Multi-
Score Nascent Emerging Connected moment
Healthcare
& Pharmaceuticals
1.1
Education & Training 1.8
Automotive 1.5
Consumer Products 1.7
Retail 1.9
Real Estate 1.9
Travel & Leisure 1.9
Technology 1.8
Financial Services 2.0
Telco & Media 1.9
Sources: BCG Digital Marketing Maturity study 2019, Asia Pacific brands.
Industries with two or more companies are shown.
While first-party data is data that brands ing efforts. Their collection efforts are not
collect directly, it is not data that they own. integrated, the data ends up in siloed sys-
Ownership is in the hands of consumers, tems, and it is not made available for
and the data comes with restrictions that broader use. In some instances, data is not
require explicit permission from consumers collected with the necessary permissions
on how it can be used. Many consumers are for marketing use, and in others, corporate
happy to have their data used in ways that functions are not comfortable sharing their
benefit them—if they understand what that first-party data with marketing platforms.
means—while others are cautious. Regula- In other companies, management still errs
tors have also stepped in with new rules to heavily on the side of caution, fearing that
protect consumers’ data rights. The major overly personalized communications could
web browsers too are moving towards more have an adverse impact and drive priva-
user control of data that is collected from cy-sensitive consumers away.
the consumers. Responsibility and best data
practices have become prerequisite in da- Many companies, such as consumer prod-
ta-driven marketing. ucts manufacturers, have more limited di-
rect consumer interactions, or less-frequent
How companies collect and use first-party interactions. Despite the limited opportuni-
data varies widely by industry. Some com- ties to collect first-party data, lots of brands
panies, such as banks, telcos, and retailers, still see first-party data as highly relevant
have frequent direct interactions. They typ- to their business objectives and look for in-
ically have access to a wealth of first-party novative ways to unlock new data sources.
data, and generally possess the necessary Several CPG companies have their brand
governance and infrastructure to use it for websites and microsites which offer prod-
business purposes. While many of these uct details and also ask consumer to share
companies use first-party data for tasks their information in return for discounts
such as risk management (banks) or churn and coupons. An increasing number of
prediction (telcos), they are not yet leverag- CPG companies are launching their D2C
ing these capabilities fully in their market- platforms to sell directly to their consum-
Boston Consulting Group X Google 3ers. These platforms help the brands to consistently—with all multi-moment brands
build their first-party database. Innovative and 77 percent of connected brands saying
brands also unlock consumer insights by that their first-party data is mostly or fully
creating experiences for the consumers embedded in their marketing campaigns.
where they are happy to share information We also saw that there is a significant
for getting personalized recommendations. range of first-party data embeddedness in
For example, a leading beauty and person- marketing campaigns across industries (Re-
al care brand created a chat bot which pro- fer to Exhibit 2).
vides personalized product recommenda-
tions based on the information provided by We saw that the top barriers to achieving
the consumers. significant business impact with first-party
data are tech related with up to 62 percent
In our study, 87 percent of brands agreed of brands citing the inability to link technol-
that they see first-party data as very im- ogy tools as the top barrier, followed by the
portant to digital marketing, however what lack of understanding of data and its use
also came out is that only few brands were cases. Organizational barriers like lack of
actually effective at accessing and integrat- effective team set up and talent were also
ing their data sources across online and of- cited by more than 40 percent of the
fline channels to deliver better experiences brands.
to the consumers. 56 percent of the Asia
Pacific brands believe they are below aver-
age or at best 'average' at leveraging their The Responsibility Imperative
first-party data. One consumer products for First-Party Data
company in Taiwan said that they have col- BCG has been researching and writing on
lected 5-6 years of usage data on their the issues of online privacy and consumer
products but do not have sufficient resourc- trust for the better part of the last decade.
es and capabilities to analyze and activate As early as 2012, we had observed that
the data. We saw that brands with higher most consumers were concerned about
maturity leveraged first-party data more how their personal data is used but also
EXHIBIT 2 | There is a Significant Range of First-Party Data Embeddedness Across
Industries
Participants (%)
Healthcare
& Pharmaceuticals
20% 60% 20%
Automotive 75% 13% 12%
Consumer Products 19% 46% 22% 13%
Travel & Leisure 4% 37% 44% 15%
Financial Services 7% 33% 40% 20%
Technology 33% 42% 25%
Retail 23% 59% 18%
Telco & Media 17% 67% 16%
Level of first-party data
Not Embedded at All Mostly Embedded
embeddedness in
marketing campaigns Somewhat Embedded Fully Embedded
Sources: BCG Digital Marketing Maturity study 2019, Asia Pacific brands.
Note: Taken from responses to "Which of the following best describes how embedded your first-party data is in your
marketing efforts currently?"
Industries with four or more companies are shown.
Boston Consulting Group X Google 4given proper privacy controls and sufficient 45 percent of respondents don’t believe
benefits, most consumers are willing to that companies care about the security of
share their personal data6. their data. It becomes imperative for com-
panies to establish the trust by having con-
Recently regulators have actively respond- sent forms which are easy to understand
ed to the consumers’ concerns on data pri- and make it easy for consumers to give or
vacy with GDPR guidelines in Europe. withdraw consent. Companies can further
These guidelines require companies to fol- build trust by being clear in communicat-
low clear and transparent consent policies ing to consumers about the kind of data
which are easy for consumers to under- they collect, how the data will be used,
stand and also provides them with more who will have access to the data, and the
control as they can see what data is being value for the consumer of granting permis-
collected by the companies and for what sion to the data through personalized expe-
purpose. This has had implications in Asia riences. (Refer to Exhibit 3).
Pacific as well with countries putting in
place their own data privacy standards. Digitally mature brands practise the follow-
China put its own standard for data protec- ing two best practices when asking consum-
tion in May 2018 which is in line with er for permission to use first-party data:
GDPR but stricter on the processes. India
introduced the Personal Data Protection Transparency—They design the ask with
Bill in Dec 2019 which mandates consent a neat user interface and make it easy to
from the consumers for the collection and withdraw consent by being transparent
use of personal data. Australian Competi- and giving users control. They are upfront
tion and Consumer Commission (ACCC) about the reasons for collecting data, and
recommendations to the Australian Privacy the benefits of collection and usage.
Law intends to bring closer alignment with
GDPR guidelines through strengthening Value—They highlight the incentives, such
protections and consent requirements. The as better consumer experience, that comes
Personal Data Protection Act (PDPA) in from sharing data.
Singapore mandates consent while collect-
ing personal data and requires the organi- Digitally mature brands go even further in
zations to inform the consumer the pur- implementing data best practice. They de-
pose for collecting or use of data. velop both an internal and external code
of data responsibility rooted in good con-
Major browsers are also taking active steps duct and stewardship.
in protecting consumers’ data privacy. Mo-
zilla’s Firefox has changed its stance on ac-
tive third-party tracking over the past year. Putting First-Party Data to Use:
In the recent ITP update, Apple’s Safari A Two-Step Approach
blocked third-party cookies by default. At its core, first-party data best practice is
Chrome has also announced its intent to about a two-way value exchange: the con-
phase out support for third-party cookies in sumer gains better experience, including
the next two years in favor of new priva- personalization at all points in the shop-
cy-preserving, open-standard mechanisms. ping journey and relevant ads, the brand
Increasingly, it is becoming harder for the gets the opportunity to deliver relevant ex-
brands to collect and use third-party data, perience for their consumers, which leads
so they need to develop capabilities to to positive impact on the business metrics
leverage more first-party data in the future. like conversion rate, retention rate and life-
time value. The brands also benefit from
According to the State of the Connected higher marketing efficiency using the in-
Consumer report by Salesforce in 20197, 65 sights they derive from the first-party data.
percent of the respondents in Asia Pacific
believe that most companies aren’t trans- To make this exchange work, digitally ma-
parent about how they use their data and ture organizations follow a two-step pro-
Boston Consulting Group X Google 5EXHIBIT 3 | Responsible Brands Build and Retain Trust Through Transparency and
Data Stewardship
BRANDS
Consumers can
withdraw permission
Data stewardship at any time, if trust or
and transparency benefits are too low
Brands can build a Value Trust and permission
virtuous cycle of Exchange to use data
increasing trust, data
and value exchanged CONSUMERS
Increasing consumer trust increases
size of value exchange
Source: BCG analysis.
cess. The first is collection i.e. gathering, Collection
storing, cleansing and combining Most brands collect data from a variety of
good-quality consumer data from multiple online and offline sources. On average, we
first-party sources. This is followed by acti- saw that multi-moment brands collect data
vation i.e. deriving insights using data anal- from 78 percent more sources compared to
ysis, engaging audiences through marketing nascent brands. We also saw that the most
activities, measurement of campaign and effective sources (in terms of collecting
audience effectiveness. quality data) cited by brands in the study
were online sources. 50 percent of the
At each step, digitally mature brands think brands state that first-party data cookies is
strategically about what business objec- among the top three most effective sources
tives they want to achieve, and what these that they currently use followed by e-com-
objectives require in terms of data and an- merce while some brands also consider
alytics. They set different priorities for offline sources like after-sales (customer
each segment of consumers. For existing service hotlines) and loyalty programs to
consumers, where the objective might be be effective in data collection.
to drive loyalty and share of wallet,
first-party data can be used to up-sell or Not only do connected and multi-moment
cross-sell, to predict and prevent churn, or companies collect data from a wider range
to “wow” the consumer with a tailored ex- of sources, but these advanced companies
perience. For prospecting new consumers, are also able to more consistently link the
first-party data can be used to assess the majority of their data sources and connect
indicators of high customer lifetime value them to advertising technology platforms
or to leverage existing consumer segments for automated activation. For example, an
to find lookalikes. On top of this data, the insurance company in India said that they
brand layers information on site engage- are able to collect a wealth of first-party
ment and behavior to define how it engag- data from both online and offline sources
es with the consumer to create a more rele- when their consumer request insurance
vant experience. quotes. They integrate online lead informa-
Boston Consulting Group X Google 6tion with information from offline sources cent of brands leverage data for activations
like call centers to create richer consumer that can help them understand consumer
profiles. This enables personalization and behavior.
enables them to show insurance plans to
leads based on their annual income levels. Drive engagement—this includes activa-
tions that engage audiences through mar-
Activation keting activities. 87 percent of brands use
First-party data potential is unlocked first-party data for audience definition
through integrating data from multiple through creating custom audiences, looka-
sources and linking it to marketing cam- like audiences, remarketing campaigns.
paigns. Our study shows that 77 percent of
connected brands have their first-party data Measurement—this category includes acti-
mostly or fully embedded in their market- vations that enable measurement of cam-
ing campaigns and 30 percent of nascent paign and audience effectiveness. For exam-
brands used first-party data in most mar- ple, 81 percent of brands leverage first-party
keting campaigns somewhat consistently or data to understand campaign effectiveness.
frequently.
We also found that for digitally mature
Companies can activate first-party data brands, there are four commonly deployed
across a broad spectrum of uses though activation methods for first-party data.
there can be a wide range in the level of These use cases tend to be more sophisti-
sophistication and extent of first-party data cated requiring advanced technologies to
use. The first-party data activation use cas- enable more holistic, relevant and person-
es can be categorized into the following alized experience for consumers.
three categories (Refer to Exhibit 4).
• Audience definition which allows for a
Generate insights—this refers to activa- deep understanding of the key target
tions that enable analysis of data to derive segments and enables personalized
insights and drive personalization. 85 per- communication
EXHIBIT 4 | First-Party Data Activations can be Grouped into Three Key Categories
INSIGHT ENGAGEMENT MEASUREMENT
Activations that enable Activations that engage Activations that enable
analyses of data to derive audiences through measurement of campaign
insights and drive marketing activities and audience effectiveness
personalization
Understand consumer Understand campaign
85% Audience targeting 87% 81%
behavior effectiveness
Business insights 48% Lifecycle marketing 38% Predicitive scoring 18%
Predict future Cross-channel
45% 25%
lead management
consumer trend
Personalization engine 24%
Audience definition 34%
Single consumer view 22%
Participants (% that deploy each activation)
Sources: BCG Digital Marketing Maturity study 2019, Asia Pacific brands.
Note: Taken from responses to "Which of the following best describes what you currently do with first-party data?"
Boston Consulting Group X Google 7• Lifecycle marketing which refers to they segment audiences using a variety of
strategic consumer engagement across parameters and derive insights from them
the funnel with relevant offers and to personalize the content on their plat-
experiences form as well as the messaging for their ads.
They observed that customized ads are
• Personalization engine which leverag- 5-6x more efficient than generic ads.
es machine learning and analytics to
deliver hyper-personal experiences When it comes to lifecycle marketing, 67
percent of multi-moment brands and more
• Advance cross channel lead manage- than half of connected brands leveraged
ment through seamless integration of first-party data to engage with consumer
lead activity across channels throughout their purchase and post-pur-
chase journeys with relevant offers and ex-
Brands have been seeing great value in periences. Brands across Asia Pacific con-
customizing their approach to the different sider lifecycle marketing to be critical to
audience segments. For instance, brands their marketing strategy. They believe that
we interviewed mentioned that they were lifecycle marketing can provide a more ac-
able to drive better campaign efficiency curate sense of their customers’ lifetime
and outcomes by segmenting audiences value and help them understand how to
and delivering personalized content to maximize it.
them as opposed to broad-based marketing
using generic content. Brands that deployed at least one of the
four advanced activations achieved 1.5x
A travel & leisure company in Australia higher revenue uplift than brands that
said that they create custom personas didn’t deploy any of these activations.
based on consumer interactions with their Moreover, brands that deployed all four
ads and websites to ensure that they focus activations achieved 2.9x higher reve-
on activities that will drive a positive out- nue uplift when compared to brands
come. A digitally mature media (OTT / vid- who didn’t deploy any of these activa-
eo streaming) company in India said that tions. (Refer to Exhibit 5).
EXHIBIT 5 | Brands that Deployed Advanced Activations Using First-Party Data
Achieved Higher Impact
1.5x
Higher revenue uplift
2.9x
Higher revenue uplift
achieved by brands achieved by brands
deploying at least one deploying all four
of the four sophisticated sophisticated
activations activations
Sources: BCG Digital Marketing Maturity study 2019, Asia Pacific brands.
Note: Uplifts shown are compared to brands that do not deploy any of the 4 activations; Taken from responses to
"Which of the following best describes what you currently do with first-party data?", and "What annual incremental
revenue impact has your company achieved from first-party data?"
Boston Consulting Group X Google 8The Enablers for Unlocking Full each other’. There is a robust data
Potential of First-Party Data infrastructure in place to allow secure
In our study in 2019, we had identified six accessibility of relevant data and automa-
technical and organizational factors as key tion of data-driven marketing activities;
enablers to using first-party data (Refer to manual processes are reduced (such as
Exhibit 6). media buying and content production),
and basics (like tagging) are in place. A
Up to 70 percent of brands across Asia Pa- telecom company in the Philippines said
cific saw technical factors as a top enabler that they have progressed significantly
and more than 50 percent of brands still due to their new CRM system, enabling
required organizational changes to unlock them to execute trigger-based campaigns
the full potential of first-party data. and connect with consumer in ways that
weren’t possible before.
Technical Enablers
• Connected data is where high quality • Actionable measurement is having a
data is responsibly collected and feedback loop in place to inform
managed to inform insights, audiences on-going activation through regular
and content. All multi-moment brands measurement, testing and optimization
and up to 62 percent of connected of KPIs linked to business outcomes
brands use centralized data warehouses such as sales or profit. For instance,
on cloud (for example Google Cloud AirAsia, in Malaysia, said that investing
Platform, AWS, or Microsoft) that in tech for their measurement frame-
combine both company data and work is when things really started
marketing data seamlessly. Use of cloud taking off for them.
is common among younger, digital
native organizations. Organizational Enablers
• Specialist skills mean having in-house
• Automation & integrated tech is where capabilities to support data-driven
technology stacks can effectively ‘talk to campaigns including channel special-
EXHIBIT 6 | Six Technical and Organizational Factors Remain as Key Enablers to First-
Party Data
Connected
data
Automation & Actionable
integrated tech measurement
Agile teaming
Agile teaming& fail &
fast culture
fail fast culture
Organizational
Technical
Sources: BCG Digital Marketing Maturity study 2019, Asia Pacific brands.
Boston Consulting Group X Google 9ists, measurement experts and data and are establishing executive positions
scientists. Multi-moment brands often around data and analytics (such as
move away from off-the-shelf tools and Chief Data Officer) as they try to
solutions in favor of developing their establish more data-driven cultures
own algorithms in-house, for example across the entire company. Our study
focusing on customer lifetime value or shows a clear pattern, where surveyed
churn prediction. This approach, of brands with CEO sponsorship tend to
course, requires more specialist skills, show 1.5x higher maturity than sur-
either in-house or through partners. veyed brands with limited sponsorship.
AdOps and media buying are increas- Furthermore, surveyed brands that
ingly moving in-house for advanced adopt agile ways are often 1.4x more
brands because of increased ease from digitally mature. A Thai travel company
automation and increasing media mentioned that support from their
budgets justifying the internal FTEs. A Chairman was their biggest driver of
tech company in India emphasized that success because he was personally keen
having tasks such as these performed to see improvements in their digital
by dedicated in-house staff allows for marketing maturity. Similarly, Cathay
faster turnaround and there is often Financial Holdings, a Taiwanese
higher ownership versus shared agency company, said that having an agile
resources. Across Asia Pacific, all structure enabled strong collaboration
multi-moment brands have data scien- across their marketing and product
tists in-house, as compared to 25 teams.
percent of nascent brands and 41
percent of connected brands.
How can Brands Unlock Bene-
• Strategic partnerships with media / fits of First-Party Data?
creative agencies as well as other third Brands can leverage the technical and or-
parties (such as technology providers or ganizational enablers and follow a clear
measurement providers) becomes three-step path to unlock the full benefits
important to support data-driven use of first-party data (Refer to Exhibit 7).
cases and supplement a brand’s own
capabilities. For example, a leading Set the foundaton
cosmetics brand from Hong Kong set up At the basic foundation level, brands need
a team comprising of their employees to make sure that data collected is compli-
and members from an external media ant with regulations and cleansed to a lev-
agency to create campaigns in order to el that is usable for analysis and activations
allow for better collaboration and so relevant to the brand’s needs. A leading
that their employees can work closely FMCG company in India launched an ini-
and learn from the agencies. Among the tiative last year to review all their existing
most digitally mature brands, we are consumer data and ensure that they were
seeing an increase in partnerships with acquired by seeking the right permissions.
technology providers and advanced We also found that ensuring a clear senior
analytics partners. They are increasing- sponsor to champion the digital marketing
ly working with the adtech and martech maturity journey is critical.
providers to better understand how to
best deploy the available tools and Build Connections
achieve full functionality. To make the next step, brands must in-
crease the embeddedness of first-party
• Agile teaming & fail-fast culture with data in their campaigns i.e. use first-party
data governance and stewardship data more frequently and consistently in
become more important and visible campaigns. A leading Filipino telco said
throughout the digitally mature that first-party data allows them to make
organizations. Advanced companies are more relevant offering to their consumer.
explicitly defining their data strategy Similarly, an Indian travel and leisure com-
Boston Consulting Group X Google 10EXHIBIT 7 | There is a Clear Path for Brands to Unlock Benefits of First-Party Data
MAKE EVERY
MOMENT MATTER
✔ Insource key capabilities
✔ Embed agile teaming and
BUILD CONNECTIONS "fail fast" culture
✔ Co-locate functions
✔ Embed "data-first"
✔ Develop expert skills mindset
SET THE FOUNDATION
✔ Accelerate data usage in ✔ Optimize value using
✔ Ensure C-suite sponsor
marketing campaigns sophisticated attribution
Org ✔ Leverage partner
✔ Define common KPIs ✔ Identify signals across
steps ✔ Compliance with data online-offline data
regulations ✔ Combine online data
✔ Understand current data ✔ Automate message ✔ Link KPIs to objectives
Technical delivery
✔ Implement tags & analytics ✔ Implement single
steps ✔ Build robust data consumer view of owned
✔ Ensure basic data quality architecture assets
Nascent Emerging Connected Multi-moment
Key: ✔ New or prominent factors to consider related to first-party data
Sources: BCG Digital Marketing Maturity study 2019, Asia Pacific brands.
pany said that first-party data allowed curity. A technology company in India au-
them to bring acquisition costs down and tomated data processing/handling and
improve their media campaign perfor- built an in-house product to share data se-
mance significantly. Brands must start curely with their agencies for their market-
building connections both in bringing ing campaigns. Some multi–moment brands
cross-functional teams together and in con- also enable 360° view of consumer through
necting data to drive automation and en- data and technology integration across
able more frequent usage of data in mar- channels and create personalization engine
keting campaigns. For example, a leading for rich analytics and delivering highly rel-
insurance company in India said that they evant experience to consumers.
have doubled their revenue impact ever
since they set-up their “digital center” and
co-located key teams. This enabled an agile Conclusion
culture where they could have regular
stand-ups and brainstorming that allowed
them to test and learn rapidly. F irst-party data is the data that a com-
pany or brand collects directly with the
permission of consumers, however rights of
Make Every Moment Matter ‘how this data can be used’, continues to
At the next level, multi-moment brands go reside with consumers and is enabled by
as far as automating the processing and their explicit, transparent & revocable con-
transformation of the data by integrating sent. Building first-party data capabilities is
advanced tools with existing data architec- a key imperative for brands to move up the
ture which allows for automated quality digital marketing maturity curve and digi-
checks. Beyond quality, digitally mature tally mature brands reap the benefits by
companies are providing democratized ac- getting good value unlocks. Our study
cess of relevant data needed for data-driv- shows brands at higher digital maturity lev-
en marketing for internal teams via cen- els witness on an average of 11 percent an-
tralized systems and real-time dashboards nual incremental revenue uplift and 18
without sacrificing on data privacy and se- percent cost efficiency.
Boston Consulting Group X Google 11While first-party data is important for data to usable quality on technological in-
brands, building and retaining the trust of tervention side. Second is build connections
consumers amidst growing data privacy which includes things like co-locating func-
concerns is an important imperative. An tions to enable cross functional teaming,
effective usage of first-party data is a two- active mandate to use first-party data in
way value exchange between consumers marketing campaigns and building robust
and brands i.e. in a privacy-conscious world data architecture to enable such use. Third
where consumers seek personalization yet is make every moment matter which requires
want their data privacy to be maintained, among other things setting up a data first
digitally mature brands maintain right data mindset, agile teaming, ability to identify
governance, ensure transparency and seek signals across online & offline channels
usage permission from consumers by high- and single consumer view of assets. It is
lighting the value benefit to them such as important for brands to keep an eye on
better consumer experience (e.g. relevant measuring the business benefit at every
& personalized recommendations), better stage and setting up right organizational &
deals etc. technological capabilities to scale up the
initiatives that matter. As per our esti-
To unlock the potential of first-party data, mates, responsible use of first-party data
brands need to follow a two-step process. has the potential to unlock an estimated
The first step is efficient collection i.e. gath- $200 billion value for brands in terms of in-
ering, storing, cleansing, and combining cremental revenue or cost efficiencies in
first-party data from multiple sources to the Asia Pacific markets.
have the right & usable data. Second is
right activation of the data e.g. deriving in-
sights through data analysis, engaging audi-
ences through personalized marketing ac- Notes
tivities, measurement of audience 1. The Dividends of Digital Marketing Maturity—
BCG Publication, Feb 2019; Think with Google—
effectiveness etc. In our study we found New research reveals APAC brands are reaching new
that digitally mature brands commonly de- heights in Digital Marketing Maturity, Feb 2020
ploy four advanced activation methods us- 2. Hootsuite “Digital in 2019”
ing first-party data such as right audience 3. e-Marketer—Global Digital Video 2019
4. e-Marketer—“Brexit Hits the High Street, but
definition, lifecycle marketing, personaliza-
Ecoierce Proves Resilient” Jul 7, 2019
tion engine, and advanced cross channel 5. Estimated number based on BCG analyses, survey
lead management. Brands that deployed at findings, published data of advertising spends by
least one to all four of these advanced acti- industry of respective countries and advertising
spends to revenue ratios
vations achieved 1.5X and 2.9X higher rev-
6. Bridging the Trust Gap in Personal Data, BCG
enue uplift respectively compared to Publication, March 2018, The value of our Digital
brands that did not deploy any of these ac- Identity, BCG publication, Nov 2012
tivations. 7. State of the Connected Consumer Report,
Salesforce, June 2019
Technical enablers such as connected data,
automation & integrated tech, actionable
measurement and organizational enablers
such as specialist data skills, strategic part-
nerships, agile teaming & fail-fast culture
are critical for using first-party data effec-
tively. Leveraging these enablers, we have
laid out a clear three-step path that brands
can follow to unlock the full potential of
first-party data and accelerate their jour-
ney up the digital marketing curve. First is
set the foundation which includes actions
like getting sponsorship from top leader-
ship on the organizational side and getting
Boston Consulting Group X Google 12About the Authors
Anthony Oundjian is a Managing Director & Senior Partner in the Manila office of BCG and leads BCG’s
TMT practice in South-East Asia. He is also the Asia Pacific Lead for Learning & Development. You may
contact him by e-mail at oundjian.anthony@bcg.com.
Nimisha Jain is a Partner and Managing Director in the New Delhi office of BCG and leads the Center for
Customer Insight for Emerging Markets. She is also the Asia Pacific Lead for Marketing, Sales & Pricing.
You may contact her by e-mail at Jain.Nimisha@bcg.com.
Anubhav Pateriya is a Partner in the New Delhi office of BCG and works extensively with Consumer and
Retail Companies. You may contact him by e-mail at Pateriya.Anubhav@bcg.com.
Matt Brocklehurst is the Head of Apps, Partnerships and Platforms Marketing in Asia Pacific at Google.
You may contact him by e-mail at brocklehurst@google.com.
Alessandra Alessio is the Marketing Lead, Google Marketing Platform in Asia Pacific at Google. You may
contact her by email at aalessio@google.com.
Acknowledgements
The authors would like to thank Pimpisa Mekdhanasarn who is a Project Leader in BCG’s Bangkok office
and Athira Asokan who is a Consultant in BCG’s New Delhi office for their contributions to this article. The
authors also thank Jamshed Daruwalla, Pradeep Hire and Ratna Soni for their support in the editing and
formatting of the article
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