First-party data has been heralded as a solution, and while it offers the potential for highly personalized advertising, the reality is that this data is practically unusable. However, Nefta, a pioneering company in the field, is offering a privacy-compliant solution that leverages behavioral analytics from first-party data to benefit publishers and advertisers.
The Promise of First-Party Data
The very strict regulations regarding data collection for personalized advertising reduce the efficiency of in-app advertising. Advertisers struggle to target audiences effectively, leading to lower ad revenues, less effective campaigns, and irrelevant ads. Publishers can’t serve personalized adverts to opt-out users and see diminished eCPMs.
This is where the promise of first-party data to improve in-app advertising appears.
First-party data, collected directly from users by a company, is a beacon of hope. It’s considered safer, as it’s consent-based and belongs to the publisher. It could allow highly personalized advertising and foster user trust, resulting in greater LTV and retention. In today’s gaming landscape, gamers spend countless hours immersed in virtual worlds, providing a wealth of data through their in-game activities.
There is a major problem, however.
Data on its own is useless. It is only useful if it is applied and analyzed in the right way. Say you have 10 games, all with different types of data and formats. To make first-party data usable, you would first need to standardize this data across all your titles into a format that can be collected, processed, analyzed, and modeled. Then, you would need to create some method of acting upon the models generated and use that methodology in your system in a way that would allow you to benefit from the models and the data.
Basically, you would need to create your own ad network and convince others to work with you in order to reap any benefits. This is where Nefta comes in.
Nefta’s Innovative Solution to Monetise First-Party Data
Nefta has recognized the pressing need for a privacy-compliant solution that harnesses the power of first-party data while respecting user privacy. Nefta taps into this rich source of behavioral data by tracking in-game events, such as when a user progresses in a game, receives something, or uses/spends something.
Nefta’s analytics engine processes this data to gain deep insights into user behavior. By understanding how users interact with games, the platform can create detailed user profile groups, identifying preferences, habits, and patterns.
Capitalizing on Data
Nefta’s solution helps publishers and advertisers:
- Boost IAA Revenue for Opted-Out Users: Even users who opt out of ATT receive relevant ads based on in-game behavior, maximizing ad revenue for publishers and providing users with more engaging ads.
- Effectively Target Campaigns: Advertisers identify and target engaged audiences, resulting in higher click-through and conversion rates.
Implementing Nefta’s Solution
Implementing Nefta’s solution is a two-step process that enables publishers and advertisers to harness the power of behavioral analytics from first-party data and use it effectively for in-app advertising.
Publishers integrate Nefta’s SDK natively via LevelPlay or MAX mediation and add game event tags to their games. As users play through, these tags are collected on an app-by-app basis and sent to Nefta, where machine learning is used to analyze these game event tags to discover patterns of usage and create behavioral profiles. Certain advert creatives perform better when shown to certain behavioral archetypes.
This is how Nefta is able to match profiles to adverts better; they are more likely to click. Publishers and advertisers can now use these user profiles to target their ads effectively. Nefta provides tools and dashboards for continuous monitoring and optimization of ad campaigns, and because Nefta works with leading MMPs, you can continue to use your existing source of truth.
Conclusion
In an era where data privacy and advertising efficiency often seem at odds, Nefta has emerged as a leader in innovation. By providing a privacy-compliant solution to monetize first-party data on an app-by-app basis via behavioral analytics, Nefta is bridging the gap between user privacy and revenue generation.
With its ability to improve IAA revenue for opted-out iOS users and enable advertisers to target campaigns more effectively, Nefta’s solution represents a promising path forward for both publishers and advertisers. As businesses navigate the complex terrain of data privacy regulations, Nefta’s innovative approach serves as a testament to the possibilities that lie ahead when technology, privacy, and advertising converge harmoniously.
