As Miso looks back on 2022 and plans ahead for 2023, it’s clear that personalization and privacy are becoming increasingly important. In the past, data scientists didn’t pay much attention to personal data and privacy, but things are changing, and the coming year will see personalization and first-party data collide. Here are three trends that data and analytics professionals need to watch in 2023:
Trend #1: Rethinking the First-Party Playbook As app tracking and third-party cookies continue to crumble, enterprises will need to rethink their first-party playbook. Users are instinctively opting for essential cookies or declining app tracking when prompted. With GDPR and CCPA fully in place, the era of widespread cookies and tracking is coming to an end. This move towards privacy is a step in the right direction, but it won’t come without its challenges. Third-party ads will decline in effectiveness and increase in cost, forcing businesses to rethink their third-party strategies. The key is to focus on first-party clickstream data, which can be used to create hyper-engaging search, recommendations, and discovery experiences that keep customers coming back. Thanks to advancements in AI and NLP, individual user insights can be operationalized and applied to email, SMS, push notification strategies, loyalty programs, and referral programs. This approach benefits both businesses and consumers.
Trend #2: Advancements in Deep Learning Investing in machine learning to process first-party data is critical. Deep learning and transformer models have unlocked the potential of neural search, recommendation systems, and predictive modeling. First-party clickstream logs were once the type of data that only a project manager or BI analyst could love. However, deep learning-powered tools and systems can now understand these clicks and interpret what they tell us about users and visitors. With transformer models and encoder systems, businesses can analyze and semantically interpret product catalogs, content, and ads. By combining these insights with a user’s clickstream, businesses gain an interpretive lens through which to see what interests a user. This can lead to personalized semantic search, recommendation systems, multi-objective rankings, target marketing, and more. These tools can improve user experiences and revenue growth at scale.
Trend #3: New Data Privacy Regulations and Practices Changing the way we do business to address ethical and privacy concerns will be painful in the short term. However, this shift will lead to a huge improvement in how websites and apps personalize the user experience and put their insights to work in better direct marketing, loyalty programs, and advertising. In the long run, this can only be good. Teams that fully commit to this strategy will see higher engagement, retention, and organic growth. They’ll unlock new revenue streams without exposing their users’ data or mistreating their trust. Stronger data regulations could be the rising tide that lifts all boats, giving more platforms, marketplaces, brands, and publishers the ability to succeed.
A Final Word The internet has long had a “winner takes all” mentality, but this isn’t good or healthy for our online economy. We need a vibrant ecosystem in which consumers have fair choices for where they can shop, get their entertainment, and be informed. We have a chance to unlock a completely new phase of the web. It’s an exciting time in the world of data and analytics. Although some of the changes ahead may seem daunting, we’re at an inflection point. Businesses that find smarter, more ethical, and privacy-first ways to engage with their customers will be the clear winners, while those that don’t adapt will crumble like the third-party cookies that will soon be a thing of the past.
