{"id":3799,"date":"2022-10-10T01:14:37","date_gmt":"2022-10-10T05:14:37","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2022\/10\/10\/first-party-data-can-solve-ad-targetings-bias-problem-heres-why-it-hasnt\/"},"modified":"2022-10-10T01:14:37","modified_gmt":"2022-10-10T05:14:37","slug":"first-party-data-can-solve-ad-targetings-bias-problem-heres-why-it-hasnt","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/first-party-data-can-solve-ad-targetings-bias-problem-heres-why-it-hasnt\/3799\/","title":{"rendered":"First-Party Data Can Solve Ad Targeting\u2019s Bias Problem. Here\u2019s Why It Hasn\u2019t."},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Reggie Wideman, Chief of Staff, Head of Strategy, Lytics<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">For advertisers everywhere, traditional ways of targeting are failing to honor new ways of thinking (or the way many modern consumers today live). With more data at our disposal than we know what to do with, brands no longer need to make assumptions about who someone is and <a href=\"https:\/\/cloud.google.com\/transform\/why-behavioral-data-is-the-best-way-to-remove-bias-from-marketing\">what their demographics mean about them<\/a> in order to reach them. Nonetheless, they continue to do so and many even fail to recognize their assumption-based approaches \u2014 <em>despite<\/em> audience frustration and <a href=\"https:\/\/www.thinkwithgoogle.com\/marketing-strategies\/monetization-strategies\/adblock-report\/\">growing usage of ad blocking technology<\/a> from disgruntled web users.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Reliance on assumptions about who our ideal customers are and what they want have inadvertently injected bias into our acquisition strategies. It used to be that the majority of families fit the traditional, nuclear mold (think: mom, dad and at least two children). Nowadays, only <a href=\"https:\/\/www.huffpost.com\/entry\/traditional-families-pew-report_n_6377136#:~:text=Nowadays%2C%20only%2046%20percent%20of%20kids%20live%20in,and%205%20percent%20don%27t%20live%20with%20either%20parent.\">46% of families do<\/a>. Today, it\u2019s more common to see single-sex couples, divorced parents, childless single adults, etc. Where it was once expected that women of a certain age would be stay-at-home or working moms, today, <a href=\"https:\/\/www.theatlantic.com\/entertainment\/archive\/2015\/04\/why-women-arent-having-children\/390765\/\">one in five women are actively choosing not to have children<\/a> \u2014 and for educated women who hold at least a bachelor\u2019s degree, that ratio jumps to 1 in 4. Ad targeting, however, has not yet caught up with the times.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Nonetheless, to claim that unintentionally biased advertising is solely a cause of societal change would be misguided. Without exploring our unconscious biases and how they play out in our advertising strategies, the story of <em>why<\/em> this is happening remains incomplete. (To dive even deeper, <a href=\"https:\/\/newyork.advertisingweek.com\/aw\/schedule\/session\/-31-2022-10-17-1615-session\">join our discussion<\/a> on October 17th with Reggie Wideman, Head of Strategy at Lytics, Giusy Buonfantino, Vice President, Consumer Packaged Goods Industry Solutions at Google Cloud and Steven Moy, CEO of Barbarian, \u00a0at 4:10 p.m. ET and learn to check your ad targeting biases at the door.)<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How unconscious bias affects ad targeting<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Biases come in all shapes and sizes. And unfortunately, advertisers often make assumptions about their audiences based on demographic data, leaving room for things like unintentional gender, age, racial biases, etc. Here are some of the ways gender bias alone, as an example, plays out in the world of advertising.<\/p>\n\n\n\n\n<ul class=\"wp-block-list\">\n \t<li>76% of female and 88% of male marketers <em>believe<\/em> they avoid gender stereotypes when creating advertising. (<a href=\"https:\/\/martech.org\/are-brands-behind-the-times-when-it-comes-to-gender-stereotypes-in-ads\/#:~:text=Kantar%E2%80%99s%20Link%20Ad%20Testing%20model%2C%20which%20analyzed%2020%2C000,food%20advertising%20and%2060%20percent%20of%20retail%20ads\">Martech<\/a>)<\/li>\n \t<li>Still, ad targeting is extremely skewed within specific product categories like baby products, laundry products and household cleaners &mdash; where women make up 98% of the targeted audience. (<a href=\"https:\/\/martech.org\/are-brands-behind-the-times-when-it-comes-to-gender-stereotypes-in-ads\/#:~:text=Kantar%E2%80%99s%20Link%20Ad%20Testing%20model%2C%20which%20analyzed%2020%2C000,food%20advertising%20and%2060%20percent%20of%20retail%20ads\">Martech<\/a>)<\/li>\n \t<li>While 75% of fathers consider themselves responsible for the emotional well-being of their children, only 20% of these fathers consider this dimension of their paternal role to be <a href=\"https:\/\/www.edhec.edu\/en\/research-and-faculty\/edhec-vox\/marketing\/single-fathers-market-segment-still-ignored-brands\">reflected in advertising<\/a>.<\/li>\n \t<li>Women buy 62% of all new cars in the U.S. But you wouldn&rsquo;t be able to tell that by watching the average, hypermasculine car ad. (<a href=\"https:\/\/usa.streetsblog.org\/2020\/02\/27\/streetsblog-101-car-culture-is-a-toxic-masculinity-problem\/\">Streetsblog<\/a>)<\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\">Nonetheless, ad targeting\u2019s bias problem is much bigger than gender. As <a href=\"https:\/\/www.forbes.com\/sites\/kalevleetaru\/2019\/06\/21\/targeted-ads-reinforce-bias-by-seeing-only-a-slice-of-our-lives\/?sh=280f595010db\">Forbes<\/a> put it, \u201ctargeted ads reinforce bias by seeing only a slice of our lives.\u201d If you\u2019re an advertiser who may be guilty of unconscious bias, here\u2019s our hot take: think outside the box; don\u2019t put your customers in one. Here\u2019s how.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Make ad personalization about intent, affinity, and interest &mdash; not demographics<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Brands all want to \u2014and think they do \u2014 understand their customers. But if you only understand them on a demographic level, do you <em>really<\/em> know your customers? The easy answer is no.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.lytics.com\/blog\/what-is-demographic-segmentation-and-does-it-work\/?utm_source=event&#038;utm_campaign=advertisingweek2022nyc&#038;utm_content=20221003-\">Lytics\u2019 own research<\/a> shows that behavioral data is as much as 20x more predictive than demographic-based data. In fact, with the right tools and data science, behavioral analytics are the <em>leading<\/em> predictor of customers\u2019 actions 86% of the time, compared to demographics which are only 4% predictive.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Translation: if you want your customers to engage with your brand, you need to focus on what makes them tick, not on their attributes.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">But why aren\u2019t more advertisers digging deeper and leaning on more meaningful customer data for targeting? There are a few hurdles in the way but they can and should, be addressed.<strong>\u00a0<\/strong><\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What&rsquo;s blocking <em>truly<\/em> bias-free advertising?<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Step one: we need to be honest with ourselves.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Every marketer and advertising professional in the business should not just be aware of their own biases but actively work against them and embrace technologies, like customer data platforms, that help make bias elimination a foolproof process.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">But actually executing on bias-free, first-party data-driven ad targeting strategies also continues to pose a challenge for brands.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Despite the fact that first-party data records a user\u2019s preferences and behavior, <em>and<\/em> helps brands identify and engage targeted audiences with ad experiences that address their unique needs, 32% of marketers admit they are still underutilizing first-party data in their advertising (even with the <a href=\"https:\/\/www.lytics.com\/blog\/the-end-of-cookies-is-near-why-are-marketers-still-dragging-their-feet\/?utm_source=event&#038;utm_campaign=advertisingweek2022nyc&#038;utm_content=20221003-\">end of third-party cookies<\/a> coming in 2024). What\u2019s even more concerning is that, among marketers who <em>are<\/em> making an effort to embrace a first-party approach, almost half feel that the information they are trying to access when building campaigns is inaccessible or <a href=\"https:\/\/www.lytics.com\/blog\/what-is-data-orchestration-and-why-does-it-matter\/?utm_source=event&#038;utm_campaign=advertisingweek2022nyc&#038;utm_content=20221003-\">hard to find<\/a>.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With reliable first-party data, instead of targeting your total addressable market based on demographics, your ads will be geared towards those most likely to take action.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why is now the time for change?<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Want more high-intent, predictive audiences? Lean into first-party data and take another step toward leaving your biases behind. As a bonus, your customers also benefit from hyper-relevant and meaningful messaging served at the right time.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.statista.com\/statistics\/873985\/advertising-placement-influence-consumer-perception-brands\/\">Recent data<\/a> shows that 41% of customers agree that an ad placed around relevant content sparks a positive brand perception. Eliminating bias from your advertising can mean more meaningfully personalized, relevant ads\u00a0<em>and<\/em> more delighted customers.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Better customer engagement. Deeper brand-customer relationships. Higher ROI. Saying goodbye to bias in ad targeting isn\u2019t just the right thing to do, it\u2019s also a pretty lucrative business driver for any scaling brand.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Saying goodbye to bias in ad targeting isn\u2019t just the right thing to do, it\u2019s also a pretty lucrative business driver for any scaling brand.<\/p>\n","protected":false},"author":7,"featured_media":3800,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[5],"topics":[2],"class_list":["post-3799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-data","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>First-Party Data Can Solve Ad Targeting\u2019s Bias Problem. 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