In the realm of digital marketing, the winds of change are not just inevitable; they are already here, reshaping the very foundations of how we connect brands with audiences.

As Seth Godin poignantly observes, “Change almost never fails because it’s too early. It almost always fails because it’s too late.” This wisdom rings especially true as we witness the demise of traditional onboarding solutions.

These platforms, once the cornerstone of bridging first-party data with wider advertising ecosystems, are grappling with the rapidly evolving digital landscape. The shift away from reliance on third-party digital identities marks a pivotal transformation, compelling marketers to pivot towards strategies that are not only more privacy-centric but also sustainable in the long haul.

It’s a clear signal that the digital marketing community must adapt or risk being left behind, underscoring the critical importance of embracing change before it’s too late. As we consider this, it’s essential to acknowledge that brands currently employing onboarding tactics are not at fault. These strategies represented the pinnacle of digital marketing innovation a decade ago. Nonetheless, as the digital landscape evolves, it presents an opportunity for brands to adapt by adopting more direct and efficient marketing approaches.

Understanding the Core Issue

The digital marketing domain is encountering a new paradigm with the decline of third-party digital identities. This decline challenges the effectiveness of onboarding solutions in audience matching and campaign execution, leading to increased costs—a burden ultimately borne by marketers. This scenario necessitates a reassessment of first-party audience targeting strategies, which are becoming less impactful.

Imagine the scenario of leading digital marketing at a major brand and noticing a more than 60% increase in cost-per-acquisition (CPA) in just one quarter. This would likely prompt an immediate reevaluation of digital advertising strategies towards more sustainable, effective, and cost-efficient approaches.

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Adapting to Change: The Emergence of Direct Activation

Facing these challenges, the future lies in direct activation using first-party data in paid media environments. This strategy bypasses the need for traditional third-party data intermediaries, facilitating a more cost-effective and expedient activation pathway.

Direct activation enables brands to refine audience engagement, improving match rates, reducing activation times, and enhancing targeting precision. Examples of successful direct activation include Alaska Airlines, Brooks Running, and Wyndham Hotels & Resorts using first-party data to drive significant improvements in match rates and advertising ROI, with some achieving up to 5X returns and 90% faster activation times.

Advantages of Direct Activation

The shift towards direct activation offers numerous benefits. It streamlines the audience engagement process, allowing for quicker and more efficient campaign launches. Moreover, by moving away from dependent third-party identity graphs, brands can reduce costs and invest more in impactful digital marketing strategies. This approach aligns with current digital trends and offers a sustainable model for future marketing efforts.

This transition is not merely a change in tactics but a strategic necessity. It enables brands to take greater control of their marketing strategies, ensuring cost-effectiveness and alignment with consumer expectations in the digital era.

The Path Ahead

The move towards direct activation in digital marketing is not only inevitable but critical. Brands that embrace this transition will stand a better chance of succeeding in a competitive digital environment. The future of digital marketing demands an embrace of change, a reevaluation of traditional strategies, and a shift towards more direct, efficient, and cost-effective engagement methods. The decline of onboarding solutions marks a significant turning point, heralding a new era in digital marketing characterized by enhanced control over activation processes and strategies that resonate with the digital age.

Also catch: Episode 167 of The SalesStar Podcast: Precision Based Marketing Tips – with Carter Lassy, Chief Product Officer at Terminus

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