In recent years, consumers’ concerns for their online privacy has grown substantially. Inaction by the federal government has led several companies, both large and small, to take steps of their own to assuage these privacy-focused woes. Big Tech companies like Apple and Google have implemented privacy features that have been largely well-received. Ostensibly, these changes seem positive; consumers are given more control over how their data is used. In reality, their actions are monopolistic and anti-competitive in nature, and they aren’t quite as good for consumer privacy as they may seem. The features implemented allow these companies to retain their rampant use of consumer data while significantly raising costs for advertisers and potential competitors. Big Tech is using its massive wealth of information to become untouchable monopolies, leveraging ideas of “privacy” for their benefit under the guise of consumer benefit. 

We are currently moving towards the next iteration of the Internet, commonly called Web 3.0. However, this will only be fully realized when consumers can take part in the data economy, rather than serve as powerless spectators to their own information. The walled gardens in Big Tech can no longer be the operating model of the future; more equality can be achieved by offering a value exchange to the consumer. 

The “Privacy-Focused” Decisions that have Increased Market Dominance

There have been several market-shaking moves by Big Tech that have been presented as being privacy-focused when in fact they serve primarily to increase market dominance. In April 2021, Apple introduced ‘App Tracking Transparency’ with its iOS 14.5 update, recommending their “key privacy update” for all iPhones. This allowed users to opt-out of data sharing to third parties, and resulted in initial 96% opt out rates, which have now fallen to around 62%. Furthermore, Google has stated they will deprecate the third-party cookie from their browser, Google Chrome, in late 2023. 

In Apple’s case, its decision to shut out all other companies from being able to collect user data seems profit-motivated. Apple positioned itself as the sole collector of its users’ first-party data, giving it absolute control over what happens to that data. Given its massive market share, smaller businesses and advertisers are at Apple’s mercy if they want to interact with Apple’s users. Others have wondered whether Apple is attempting to push app developers to make their revenue via in-app purchases or subscriptions, of which Apple receives a percentage cut. As cited in developer testimony, Apple has used its App Store data such as preferences and demographics to create its own apps and products that edge out competition.

For Google, there have been similar complaints. The deprecation of third-party cookies will push out advertisers that rely on such technology, while at the same time increasing Google’s power. Google itself does not rely on cookies for its data collection practices, since it is able to gain hordes of valuable information through its services such as its search engine, Maps, Gmail, YouTube, and beyond. Journalist Rick Braddock states that “…Google’s privacy protections will likely result in the company’s own data becoming more valuable as companies struggle to source third-party ad targeting data.” In fact, Google used its data from said services to build Chrome in the first place. As a result, Chrome feeds Google even more consumer data. 

The Power of Data Monopolies

In 2020, a House antitrust report outlined the unique power of data monopolies such as Apple, Google, and Amazon. These “data-opolies” squash rival brands, obtain significant advantages in product development, and decrease market innovation. The report found that this behavior is anti-competitive. But whether or not these Big Tech companies actually qualify as monopolies is beside the point. The illusion of choice – the ability to choose a different cell phone, freely download a different browser, or shop more consciously – prevents the government from bringing actions against these companies for being monopolies. Of course, this argument ignores the fact that these companies have become so integral to everyday life that, realistically, choosing other options places a notable burden on the consumer both socially and financially. In fact, since 2000, the Department of Justice has only brought one single monopoly case forward. Yet this is not echoed everywhere. In 2018, The European competition authorities brought actions against what many feel are the four biggest data-opolies: Google, Facebook, Amazon, and Apple. Google was fined a record 2.42 billion euros for leveraging its monopoly position and abusing its dominance. 

The power of these data-opolies is undeniable. Their unparalleled collections of consumer data means they essentially set the price of that data for advertisers. This of course imposes burdensome costs on third parties. A report in the Wall Street Journal showed that after Apple’s ios 14.5 update, the cost of customer acquisition for smaller businesses advertising on Meta’s main platforms, Facebook and Instagram, jumped, with some moving their “whole ad budget” to Google ads. Data-opolies can also easily and cheaply choke out competitors by promoting their own products and services over others, degrading the functionality of independent apps and services, and reducing traffic to competitors on their search channels. These behaviors can be easily masked by claiming that the reduction of data sharing promotes consumer privacy as a whole. This is difficult to argue against because in a way, it’s true – overall, it does mean that less companies are gaining access to consumers’ data. But the benefit to the Big Tech company is far greater than that of the consumer, whose data is still being collected at rampant levels and without their say. 

The Response from Brands and Marketers and the Potential Solution

In response to the decrease in availability of third-party data, brands and marketers have begun to invest in creating their own zero-party (data consciously volunteered by the user) and first-party databases at levels never before seen. These include as many data points as possible: demographic information, store visit locations, product preferences, return rates, competitor identification, and beyond. Wall Street Journal columnist Suzanne Vranica states that “gathering such data has long been a priority, but there is newfound urgency.” Brands and marketers have begun to utilize a myriad of strategies to gather this data, including loyalty and rewards programs, sweepstakes and competitions, email or text newsletters and updates, quizzes and polls, QR codes, and more. Though these methods have seen some levels of success, compiling and maintaining databases as well as creating engaging content places a significant financial burden on businesses, especially smaller businesses and startups.

So what can businesses do in light of the overwhelming power of data-opolies? It is clear that continued collection of zero-party data and first-party data is paramount. As the availability of third-party data decreases drastically, it is important for businesses to prioritize the creation of relationships with their consumers. Because even though Big Tech’s recent moves have been presented as being privacy-focused, there still remain extremely high levels of distrust for these companies. People feel commodified and dehumanized, reduced to their data. 

If brands are able to show their consumers that they are respected and valued, this will foster longer term relationships and brand loyalty. Opt-in value exchange as deployed in loyalty programs and permission marketing is likely to be a dominant strategy as we move towards Web 3.0 . Though the obstacles presented by the Big Tech companies monopolizing privacy are no small obstacle, perseverance by advertisers committed to distributing value to consumers in exchange for their consent to share data are likely to see good levels of success. 

Web3 could revolutionize the relationship between brands and their customers.

Here’s an introduction to what marketers need to know.

When the internet first went live, publishers would create content and users would consume it – a period known as web1. A decade or so later, web2 took over with the emergence of web apps and social networks, which made it easy for everyone to create, share and engage with content.

Fast forward to today, and the novelty of web2 has largely worn off. Some of the most impactful web2 companies – such as Meta (Facebook), Google and Apple – have made a killing by leveraging user-generated content (UGC) to engage consumers and create unique profiles for each of them, only to turn around and ultimately sell that data to third parties for advertising purposes.

The worst part? The vast majority of those users had no idea this was taking place – and none of them gave their permission to allow it to happen.

If advertisers want to rebuild trust with consumers, they need to take an open, transparent approach and ask their audiences for their permission to collect data. And this is exactly what the web3 opportunity – a new era of the internet characterized by decentralization, transparency and autonomy – enables.

What are the core principles of web3?

Ask 10 people to define web3, and you might get 10 different answers. But at a high level, web3 is a new iteration of the internet powered by blockchain technology and token-based economics, and it’s also governed by three central tenets:

1. Decentralization. In web2, companies own platforms. In web3, platforms are decentralized. No organization has control over any content; users do
2. Transparency. Thanks to blockchain technology, all users on peer-to-peer networks and decentralized apps (dApps) will share open, unalterable databases that they can verify with their own eyes
3. Autonomy. Ultimately, users will be able to control their own digital destiny and have the final say in whether their data is collected and how it’s used

According to a recent study, 96% of consumers don’t trust advertisers. This is exactly why brands should be incredibly excited about the web3 moment.

With the right approach, digital advertisers can rebuild the trust they’ve lost during the web2 era – connecting with consumers on a meaningful level and in an open and honest way.

Web3 is here – it’s time to prepare for the tectonic shift

Though we’re still early, the web3 moment has already arrived. Unfortunately, advertisers that wait to adapt to this reality will learn the lesson the hard way.

In the not-too-distant future, users will demand a cut of the revenue generated from the data they create. As an internet-native currency that is incredibly divisible, crypto is the easiest mechanism to deliver incentives that users can immediately put to use.

As the world gravitates toward the web3 standard, user data will increasingly be held on the blockchain or in decentralized storage solutions, which will give users more power over their data than ever before. As a result, they will be able to choose exactly which brands they consent to share data with, what data they wish to share, and for how long.

Advertisers that don’t prepare for this tectonic shift and adapt their methods to offer a real value proposition in exchange for interacting with user data will be left behind.

By offering tokenized rewards – whether that’s fungible crypto coins or non-fungible tokens (NFTs), an on-trend, blockchain-based, one-of-a-kind digital asset – advertisers can tap into the web3 ethos while exciting users about what they have to offer. Plus, they get to take advantage of the magnificent properties that come with blockchain technology, such as:

1. Immutability, or the permanent, unalterable nature of a blockchain ledger
2. Validation, or the way in which users can verify transactions are legitimate
3. Disintermediation, or the absence of intermediaries between advertisers and users
4. Profound security, made possible by cryptography and decentralization
5. Ease of transfer, which makes it simple and quick to send and receive tokens

How crypto can help advertisers thrive in web3

One of the easiest ways to reward users when they give their permission to share their personal data or perform specific actions is by issuing crypto rewards. For example, you can give them rewards when they watch videos, view personalized ads and opt to receive content from brands.

By offering an opt-in value exchange – where they’re willing to part with their data or their attention for tokens – advertisers can begin building long-lasting customer relationships and regain trust while ensuring regulatory compliance.

Though cryptocurrency remains in its infancy, adoption continues to increase; today, some 27 million Americans own crypto. With steady growth over the last decade, it’s only a matter of time before crypto usage reaches critical mass. The sooner advertisers embrace the inevitably of crypto, the faster they’ll be in a position to capitalize.

Since the future of digital advertising will be fueled by permission and digital rewards, brands need to start looking for a purpose-built crypto-rewarded advertising platform that will guide the journey ahead. Strategies that enable aligned incentives – where all participants, including users, advertisers and the platform, benefit from the permissioned sharing of data – will lead to victory in the web3 era.

With the right approach, the lopsided relationship between brands and consumers suddenly evens out, and both parties engaging with each other is more of a partnership than anything else.

This article originally appeared on The Drum and was guest authored by Permission’s CRO Lauren Griewski. Click Here to view the full article.

If advertisers want to succeed in a world that’s increasingly driven by permission, they need to change the way they interact with consumers for two key reasons. First, consumers are more and more concerned about how businesses handle their data; a recent Cisco study, for example, found that 86 percent of consumers care about their personal data and want more control over it. Second, government regulations — including Europe’s GDPR, China’s PIPL and California’s CCPA — are forcing advertisers’ hands. As additional privacy laws continue to work their way through the legislative process, it’s safe to say the halcyon days of freely harvesting reams of consumer data are coming to an end. And that’s actually a great thing.

Strong relationships — with spouses, friends and even brands — are built on trust. We trust Amazon to send items to our homes quickly and cost-effectively. We trust Uber to connect us with drivers in just a few taps. We trust Home Depot to sell us the high-quality tools and supplies we need for home improvement projects.

If advertisers want to build trusting relationships with consumers and thrive in the permission-first era of Web3 advertising, they need to embrace rewards marketing. By asking consumers for their permission to collect data and rewarding them when they choose to do so, advertisers can gather coveted first-party data to deliver relevant, personalized content, all while strengthening trust and driving customer loyalty.

Rewards Marketing: The Smart Approach to Web3 Advertising

At its core, Web3 — powered by blockchain technology — is all about users owning their data, being properly compensated for it and becoming part of the economic value chain on the web. Advertisers that wish to maximize their impact in Web3 need to embrace these concepts and implement new strategies that enable consumers to clearly understand how their data will be used should they give their consent and share it.

These days, everyone knows how valuable data is. Since most of us aren’t keen on giving away something that’s valuable for free, advertisers need to offer consumers rewards — tokenized rewards, in particular — for opting in and giving their permission. Luckily, with the right ad tech solutions in place, creating this opt-in value exchange can be a seamless, turnkey process.

Building Trust and Loyalty with Permission Marketing

Over the last decade, consumers have evolved from being mostly carefree about how their personal data is used to becoming incredibly scrupulous about it. In fact, one recent study found that 71 percent of consumers worry about how brands manage and leverage their personal data. This makes perfect sense, as we’ve all heard countless tales of advertisers collecting data in ill-gotten ways and using it to make money.

The good news is that these deceptive practices have created a once-in-a-generation opportunity for forward-thinking advertisers that are ready to flip the script.

Early adopters of permission marketing will begin to shatter these perceptions by operating in an open, transparent manner and telling consumers exactly what data will be collected and how it will be used if they consent to share it. And they’ll also be paying out tokenized rewards to incentivize sharing of that data, making the interaction that much more delightful.

Simply put, these innovative advertisers will be able to set the gold standard in Web3 advertising while building trust and loyalty across their customer base — much to the chagrin of their competitors, who will ultimately be forced to follow suit.

Customer Loyalty: The Holy Grail

By embracing permission-based rewards marketing, advertisers will be able to create more loyal customers who keep coming back to earn more. One recent report, for example, found that 85 percent of consumers are loyal to brands that protect their data. And that’s a big deal: While loyal customers might only account for 15 percent of an organization’s customer base, they can be responsible for as much as 70 percent of all revenue.

At the same time, loyal customers are also more likely to continue supporting the companies they love, which helps brands increase customer retention. Since a five percent increase in retention can translate into a whopping 95 percent increase in profits, organizations need to do everything they can to create loyal customers.

For advertisers, the path forward is clear: Embrace rewards marketing, be open and honest, and always ask for permission. With the right approach, the holy grail of first-party data from an army of loyal customers will be firmly within your reach.

This article originally appeared on Media Village and was guest authored by Permission’s CEO Charlie Silver. Click Here to view the full article.

Earlier this year, the Belgian Data Protection Authority found the International Advertising Bureau (IAB) to be in violation of several articles of the European Union’s (EU) General Data Protection Regulation (“GDPR”). The ruling contained several stipulations that are likely to have widespread effects across the online space, especially in digital advertising, both in the US and abroad. This ruling is one of many recent developments signaling that digital advertising as a whole must move in a direction of unequivocal consent. It is becoming increasingly clear that opt-in value exchange models that recognize a user’s choice are the way forward – which is central at Permission.io. 

The key issue at stake in the ruling was one of the IAB’s main tools, a cookie consent string system called the Transparency and Consent Framework (TCF). Though cookies are already in the process of being deprecated and are likely to be fully by 2023, they are still largely in use. The TCF was (and still is) widely utilized within the digital advertising space to assist businesses and advertisers with GDPR compliance. The TCF tool signals advertising partners regarding thetracking preferences a person had selected upon being prompted by the site. However, there were internal flaws in the TCF’s methodology. The IAB claimed the tool and its methods were compliantdue to a “legitimate interest” exception within GDPRt. This was found not to be the case. 

There were several key findings in the ruling. First, legitimate interest could not be considered an adequate legal basis for data processing under the IAB’s TCF. Second, the IAB’s privacy policy was neither understandable nor transparent enough. This also meant the consent received was not valid since it was not “sufficiently free, specific, informed, and unambiguous.” This is especially important for businesses to note, so that they may examine the type of consent they are receiving and how it can be classified. Furthermore, the IAB had claimed to be a data processor – a body which processes data on behalf of a data controller, as opposed to being a data controller themselves. A data controller is a body that determines the purposes of the data which it handles and the means of processing it. Yet, the IAB was found to be classified as a joint controller, which led to responsibilities that it should have upheld, such as conducting sufficient compliance monitoring amongst its clients. In the same vein, the IAB did not keep a register of its processing operations. And, finally, the IAB did not sufficiently cooperate with investigations or appoint a data protection officer.

So what can businesses who believe themselves compliant (or who may now have concerns) do given this new information? First, businesses should be extra diligent in the clarity of their external documentation and communications, such as privacy policies and cookie consent banners. They should also keep well-maintained records of their data processing operations and any efforts they have made to that end. 

Most importantly, the linchpin of the issue is the concept of consent and its manifestation in the online environment. People still feel as though they have no choice but to give their consent to data processors, receiving nothing in exchange but exploitation. Their consent, as the Belgian Data Protection Authority noted, is insufficiently free and unambiguous. This leads to the natural assumption that the best model to utilize within advertising is unequivocal consent – outright permission. 

A valid and innovative way to achieve such consent is through opt-in value exchange. After Apple released iOS 14.5, for example, Flurry found that 96% of users opted out when prompted near lunch, and around 62% of users opt out regularly now. That being said, research found that 79% of consumers may be willing to share their personal and preference data for a reward, meaning that the number of opt-outs would decrease to manageable levels. Consumers may accept more concrete compensation in return for not opting out. In fact, 75% of consumers say they want to be rewarded for engagement beyond making purchases. 

Opt-in value exchange rewards can come in many different forms. One potential option for businesses looking to advance theirWeb3strategy is to offer cryptocurrency rewards, as interest in cryptocurrency continues to grow across all generations. Companies seeking this option can run their advertising campaigns with Permission’s crypto-rewards platform and obtain consent from users to engage and share their data in exchange for a tokenized reward. By running permission-based, rewarded campaigns, companies can motivate action in a compliant way and at the same time build engaged audiences with users who are truly interested in receiving their content. By incorporating  opt-in value exchange strategies, companies can obtain meaningful consent and get ahead of the major changes that will inevitably result from this ruling, the full aftereffects of which are greatly anticipated.

2022 is already another pivotal year of transformation within the digital advertising space. In the recent past, there has been a rising tide of regulations and private sector actions surrounding the protection of consumer privacy. As newly enacted privacy legislation sweeps the globe, advertisers are seeking innovative ways to engage their audiences, collect valuable data, and ultimately drive a profit in the new age of the Internet.

To prevent enforcement actions from current and upcoming privacy legislation, advertisers will need to ask permission to obtain valuable data insights from their core audiences. Those that do will succeed in the continued race for customer attention. Requiring active consent and offering consumers a desirable reward in exchange for their data will  become the new standard by which brands and publishers interact with their audiences.

Privacy Legislation Worldwide Will Accelerate

The worldwide consumer privacy law trend was largely spurred by the passing of the European Union’s General Data Protection Regulation (GDPR),  initially implemented in 2018. The California Consumer Privacy Act (CCPA) was then passed, leading several states to put forth their own privacy legislation. Brazil enacted its General Data Protection Law (LGPD) in late 2020, and in late 2021, China implemented its own national privacy statute, the Personal Information Protection Law (PIPL), known for being difficult to navigate and heavy on government interference. Additionally, the UAE enacted the Personal Data Protection Law (PDPL), which has in contrast been largely welcomed by global markets.

It can safely be predicted that ​​more jurisdictions will pass regulations similar to the aforementioned; not only individual states within the US, but in major countries across the globe. Enforcement actions against platforms and advertisers will become very meaningful. Advertisers will need to become increasingly vigilant regarding compliance efforts, including staying up-to-date on legal developments. Changing regulations means that advertisers now, more than ever, must ask for explicit, unequivocal consent to collect users’ personal data.

Web 3.0 and Personal Data Ownership Will Become Firmly Entrenched

Web 1.0 was the revolutionary birth of the Internet that seemingly erupted from nowhere. It put browsers in the hands of countless PC users, launched millions of websites, and gave birth to e-commerce in all of its glory. It spawned unprecedented levels of innovation and networked the planet into a globalized, connected world, homogenizing – and polarizing –  cultures. Its newness and its potential defined it, but as it paved its way to necessity, change occurred.

Web 2.0 was an evolution of Web 1.0, more capable, interactive, and collaborative. The primary innovations in Web 2.0 were social media and user-generated content, supported by the application of big data technology. This enabled giants like Google, Amazon, Facebook, and all their country cousins to wield extraordinary commercial power over – and eventually abuse – our personal data.

Web 3.0 will empower consumers to be the owners of their personal data. Legacy centralized organizations trading in information will see a decline in market share for the first time since their inception. Individuals, armed with the knowledge their data is valuable, and equipped with decentralized technologies like blockchain that support data autonomy, will share in its value creation. This transfer of power is already happening, with progressive brands seeking ways to reward consumers for their time and data. Advertisers that adapt to these changes and act in accordance with these principles are far more likely to see success.

Opt-in Value Exchange Will Reign

Since 2014, Tim Cook, CEO of Apple Inc, has publicly spoken about the importance of consumer privacy. The company is leading the industry with new privacy controls across a multitude of application operations. With the launch of iOS 14.5 in 2021, analytics data revealed that over 96% of users elected to “Ask App Not to Track” their data, opting out of the third-party data exploitation long seen in the space. The reasoning behind this is easy to understand – users feel they are not gaining anything from opting in, so why would they do so? This changes, however, with the concept of opt-in value exchange – the offer of a reward of some kind for the consumer for their time, attention, and personal data. Studies have shown that  79% of consumers are willing to share their personal and preference data for a reward.

Brands that invest in consent-based campaigns will continue to outperform and permission marketing will quickly become the norm in digital advertising. Successful brands will recognize the critical importance of understanding their customer. Without a direct line to third-party data as privacy controls increase, opt-in value exchange will become a standard for paid media, offering consumers a desired reward in return for their time and information. Rewarded advertising increases consumer appeal, engagement, and brand safety. As with any value exchange, trust is cultivated between the parties. Opt-in value exchange will drive advertising in Web3.

The Rise of Consumer Data Platforms (CDPs) 

The structure of the Internet is moving away from third-party data. The requirements of the aforementioned privacy legislation and the deprecation of the third-party cookie have meant that the hurdles to the data brokerage that ruled Web 2.0 are now becoming too significant to ignore. Clearly preferable is first-party data, which can be collected and utilized by one source. Data acquisition and management must now turn to unification solutions as organizations look to gather data from disparate sources to create meaningful intelligence. Consumer Data Platforms (CDPs) aim to integrate older systems that marketers have relied on to capture relevant customer information across their operations. This move intends to clearly organize and create actionable insights, drive campaign intelligence, support data privacy and compliance, and understand the customer journey from the user’s perspective. 

Through a unified customer view, CDPs deliver greater understanding of the user journey. Marketers and advertisers will be able to micro-focus on user experiences across the customer engagement cycle, utilizing first-party data, thus decreasing reliance on third-party data brokers that have long dominated the market.

As CDPs dramatically increase their prevalence and market share, brands will begin to rely less on data marketplaces and brokers such as Liveramp, and pivot to focus on direct, one-to-one relationships with their consumers.

2022, and Beyond, Will be About the Consumer 

For advertisers, publishers, and consumers, the future is rapidly changing. Web 3.0 is trending towards bringing brands and consumers back together in a trusted, engaged relationship that respects the individual’s personal information. Current and forthcoming privacy legislation will continue to have a significant impact on the landscape. Advertising technologies that enable consumers to own their data, ask permission for its use, and share in its value creation will outperform in Web3.

More than ever, people are concerned about their data: 91% of consumers are concerned about the amount of data that companies can collect about them and 79% of Americans question how companies use their data. Yet, popular methods for digital advertising strongly rely on third-party data practices that often lack transparency or user consent. This status quo is antithetical to Web3, the new iteration of the world wide web defined by the principles of decentralization, transparency and user autonomy. As third-party cookies are phased out and data protection regulations become the norm, ​​brands have the opportunity to generate more trust and meaningful engagement with their audiences, all through first-party data and Web3 capabilities.

Today’s digital advertisers use third-party data collection for most of their work — from developing personalized ads to measuring the efficacy of ads to seamless customer engagement. Third-party cookies also drive Key Performance Indicators (KPIs) that help brands improve their ads and phase out ineffective campaigns. Without third-party cookies, brands will not be able to maintain the status quo of data collection for crucial functions.

Indeed, with the imminent phasing out of third-party cookies, this business-as-usual approach will not be viable in the near future. There is, however, an incredible tool for digital advertising that is compliant with global regulations and more aligned with the privacy demands of users: first-party data.

In the cookieless world of Web3, collecting first-party data will become essential for brands. It is also crucial that brands develop their own capacity to acquire, manage and leverage first-party data. Luckily, the rise of customer data platforms (CDPs) makes building first-party databases easier than ever. CDPs consolidate and organize first-party data into accessible databases that brands can use to run analytics and manage their audience engagement.

Ad tech companies are also developing numerous technologies that build on CDPs. Data clean rooms, for example, allow brands to compare their first-party data with larger shared aggregated databases to see if they are under or over-serving audiences. These safe spaces for data help with both measuring performance and improving consumer engagement. To date, data clean rooms have been notoriously hard to adopt: clean-room-related data silos, where data exists across multiple vendors, walled gardens, etc. are problems that need to be solved in order to make them accessible to all brands.

In the same vein, other companies are making it easier to give and receive consent through transparent avenues that incentivize users to opt-in to sharing their data. By building technologies that put control back into the hands of the user, Web3 companies are enabling meaningful value exchange between brands and their audiences. Opt-in value exchange, where users are offered rewards for giving brands access to their data, is the future of consented first-party data — studies show that 79% of consumers are willing to share their personal data for a reward. Developing the means to provide desirable rewards such as cryptocurrencies will be crucial for brands wanting to take advantage of Web3 capabilities.

Navigating first-party data collection will also necessitate that brands have the ability to determine the specific terms of consent and that these terms are followed. Asking for well-defined consent will ensure that brands are acting in compliance with global data regulations. The transparency of asking for permission also deepens audience engagement and can build brand loyalty and trust in a way that the opaque third-party cookie system hasn’t allowed.

A cookieless future is an opportunity to revolutionize digital advertising for the benefit of all. As brands develop their capabilities for first-party data collection, they are turning a new page toward less reliance on Big Tech and more trust with their audience. And for each challenge that a future beyond cookies holds — data collection, customer interaction and performance measurement — innovative companies are developing solutions. The Web3 advertising technology landscape will allow brands to create more trustworthy relationships with their audience. More than that, innovation promises a way to move far beyond cookies and into a web that is fair and transparent.

This article originally appeared on Media Village and was guest authored by Permission’s CEO Charlie Silver. Click Here to view the full article.

Recent news too often focuses on the loss of cookies — a cookie-less future — and not enough on what we all stand to gain. The retirement of third-party cookies will require substantial and bold adjustments, but the future without cookies is perhaps better understood as a future with more transparent and secure consumer data practices. Leveraging the rise of Web3, brands can move beyond cookies to generate trust and meaningful engagement with their audiences. To do so, they will need to depart from the status quo of data collection that cookies have enabled in exchange for asking for users’ permission, incentivizing users for their consent, and building their own first-party databases.

Cookies were introduced in the early days of the Web as a way to enhance the capabilities of HTTP and make browsing the Internet more convenient. These early cookies allowed websites to store useful data such as log-in information and the contents of a shopping cart (first-party data), but quickly evolved into more intrusive cookies designed to track user behavior for retargeting (third-party data) and enable the sale of such data without the user’s consent.

Popularized methods for developing personalized ads, measuring the efficacy of ads, and encouraging seamless customer engagement strongly rely on third-party data collection. Third-party data is sold or given to a site other than the one a user is currently visiting and thus is not limited to the page a user is currently browsing. Rather than improving UI, third-party data tracks users across the Web and helps companies profit off users’ data, often without their knowledge or consent.

However, the digital advertising world has recently become more averse to third-party cookies in response to consumers’ growing privacy concerns: indeed, one study estimates that 42% of users globally have taken steps to reduce the amount of data they share online. Additionally, Apple and Google have begun to phase out third-party cookies and the GDPR and CCPA are leaving advertisers no choice but to adapt to a world where data practices are transparent.

Cookie alternatives have been proposed by big tech companies, but they have largely fallen short. Both Google’s Topics and Microsoft’s PARAKEET have the potential to maintain some of the functionalities of third-party cookies with added autonomy and anonymity for users, but people are hesitant about how transparent these tools will be.

Thankfully, many ad tech startups are actively working to create products that will allow brands to continue ad targeting and performance measurement without sacrificing transparency or privacy for their customers. Even without the impressive technology being created, a shift in the way we think about data collection caused by the rise of Web3 has the potential to make the cookieless world one that is beneficial for brands and users alike.

Web3, the successor to the current Web 2.0, presents unique solutions for brands adapting to the retirement of third-party cookies. Brands that want to leverage Web3 solutions will need to obtain explicit consent so that the users retain ownership of their data, incentivize users to provide consent, and build their own first party databases. Earning the full consent of an audience to share their data by offering something they value in return (discounts, convenience, cryptocurrency tokens, etc.) allows equal sharing in value creation, also known as opt in value exchange; 52% of consumers would share personal data in exchange for product recommendations. Collecting first-party data is a way for brands to remove the middleman and engage with their audience — it is also easier than ever with the rise of customer data platforms (CDPs) which help businesses collect, unify and activate customer data.

So, what do brands stand to gain in the Web after cookies? Transparent and compensated first-party data collection is an opportunity for brands to build long-term relationships with their customers. When brands ask for permission to collect data from users, they are reimagining the way they engage with customers and putting that relationship first. The revolution of the brand-customer relationship beckons a new age of digital advertisements predicated on trust and consent. The cookieless future has the potential to be something much greater than the tool that we will lose.

This article originally appeared on Media Village and was guest authored by Permission's CEO Charlie Silver. Click Here to view the full article.

As a retailer that sells coffee and tea products infused with vitamins, superfoods, and supplements, VitaCup is always trying to attract new customers in a busy category. 

Hypothesis: Users will interact with campaigns when they receive crypto rewards

Traditional online advertising methods leave much to be desired. With the average consumer seeing upwards of 10,000 digital ads every day, it can be exceptionally difficult for advertisers to cut through the noise and engage with their ideal consumers in a meaningful way. 

Understanding this perfectly, the VitaCup team stays on the lookout for innovative advertising solutions that can help them achieve better business outcomes.

The beverage company partnered with Permission, the leading provider of permission-based Web3 advertising solutions to explore Permission Ads, the industry’s first Demand Side Platform offering crypto rewards to consumers in exchange for their consented, first party data — this led to VitaCup and Permission launching the first crypto-rewarded advertising campaign to run on the open web.

To test out this hypothesis, VitaCup launched a campaign that targeted some users with ASK rewards while also engaging a control group without any mentions of crypto. 

Results: Hypothesis validated with improved metrics across the board

As it turns out, the VitaCup team’s hunches were correct. Thanks to Permission, VitaCup experienced:

1. Increased clickthrough rates (CTRs). When compared to the non-ASK-enabled campaign, the ASK-enabled campaign delivered a 400 percent increase in CTRs for VitaCup. Additionally, compared to benchmark data about programmatic display ads from Google and Forbes, ASK campaigns saw a 98 percent increase in CTRs. It turns out consumers are more likely to perform desired actions when they’re getting something in return.
2. Higher engagement. VitaCup also saw a 38 percent CTR lift when comparing category-specific (in this case, food and beverages) CTRs of non-ASK-enabled campaigns to ASK-enabled campaigns. In other words, coffee and tea drinkers were 38 percent more likely to engage with ASK campaigns when viewing beverage-related content.
3. Increased ROI. With Permission, VitaCup was able to reduce its effective cost-per-click (eCPC) rates by an impressive 84 percent. As a result, their campaign generated a significantly higher return on ad spend (ROAS) compared to simple site retargeting.

“I was surprised by the 400% positive CTR lift over the industry average and that coffee drinks were more likely to engage with an ASK rewarded campaign.” – Brandon Fishman, VitaCup Founder & CEO

With Permission, VitaCup has found a powerful solution that can keep pace with their growth and future-proof their online advertising needs as we move further into the Web3-driven future. In large part, that’s because Permission solves three critical advertising objectives:

1. Accelerating business growth via reward-based advertising
2. Solving data challenges with compliant opt-in, first-party data capture

Building 1:1 relationships with customers throughout each stage of the consumer journey (e.g., awareness, acquisition, and retention).

Ready to create a success story of your own? Let’s get started.

Permission.io is proud to announce that it is now a member of the IAB Tech Lab. As a member of the organization, Permission will have the opportunity to contribute to industry discussions and decisions that are shaping the future of digital advertising.

The IAB Tech Lab is a non-profit community that falls within the IAB (Interactive Advertising Bureau) and develops foundational technology and standards that enable growth and trust in the digital media ecosystem. It is a member-driven community of digital publishers, ad technology firms, agencies, marketers, and other industry pioneers. IAB Tech Lab members collaborate to develop industry best practices, guidelines, and implement technology to shape the direction of the rapidly changing industry.

The IAB Tech Lab and its members are focused on four key themes: brand safety and ad fraud; identity, data, and consumer privacy; ad experiences and measurement</>; and programmatic effectiveness.

Permission plans to participate with fellow IAB Tech Lab members and lend our team’s expertise in developing new industry standards as the word of digital advertising shifts into Web3. Specifically, Permission will initially contribute in the areas of Data Transparency Standards, Global Privacy, and Distributed Ledger and Cryptography Emerging Technologies.

To kick things off, CEO, Charlie Silver sat down with the IAB team to discuss Permission.io, Permission Ads, and how crypto is playing a role in the permission-based advertising economy.

Click here to see his insightful interview.

About The IAB

The IAB (Interactive Advertising Bureau) is a non-profit organization that seeks to empower the media and marketing industries to thrive in the digital economy. They do this by engaging in activities such as developing industry standards, conducting research, and providing legal support for the online advertising industry.

Brand loyalty can feel a bit slippery. We all know it when we see it, but how does a company get it? Is it something you can strategically build? Once you earn it, can you lose it?

These questions and their answers have far-reaching consequences for businesses, and we’re going to show you exactly how you can develop and improve your brand loyalty.

Let’s go.

What is Brand Loyalty?

“The greater your command of brand loyalty, the less you must worry about price sensitivity and competitive promotions-and the less you must pay for marketing.” — Jim Mullens [*]

Brand loyalty can be defined as a consumer’s commitment to celebrate and be a part of a brand’s story, even when presented with perfect substitutes.

Customers that have brand loyalty tend to:

1. Be repeat buyers
2. Buy at a higher frequency
3. Spread a brand by word-of-mouth
4. Engage with marketing activities
5. Defend a brand in controversy

Brand loyalty varies in strength, but it can sometimes be so strong that customers sacrifice convenience, price, or other buying considerations to remain loyal. In other words, they can sometimes behave counter to their own economic interest in order to elevate their status, be a part of a tribe, or save time on decisions.

Are customer loyalty and brand loyalty the same thing?

While customer loyalty often extends into brand loyalty, they are not the same thing. Say you raised your prices or altered your offer, your brand loyal customers are likely to stick around, but habitual customers who lack brand loyalty could opt for a substitute. For example, if someone who usually buys Bounty paper towels saw a good sale on a store brand and chose the store brand over Bounty, then that’s an example of a loyal customer who doesn’t have strong brand loyalty.

Why Does Brand Loyalty Matter?

Via Yotpo

The benefits of managing and growing brand loyalty in your business are enormous. Here are just a few:

1. Gives you an instant audience for new products
2. Allows you to take risks
3. Empowers brand evangelists
4. Helps you defend against price elasticity

Companies With Fantastic Brand Loyalty

You know it when you see it, and brand loyalty is evident in the intersections between culture, social behavior, and buying behavior.

Here are a few companies with incredible brand loyalty:

Apple

Apple’s fanbase is legendary. Diehards buy every new iPhone with the tenacity of a religious zealot, and nothing could make them switch to the dreaded “green text”. Even when a particular update or product is disappointing, the idea of switching brands is anathema.

Apple built its brand loyalty on a relentless pursuit of tasteful minimalism and a stunning record of innovation.

Other mechanisms include:

1. Pairing hardware with unique software and IP.
2. Making owning multiple Apple products a seamless and better experience.
3. Using its high prices to tap into the psychology of status.

REI

If you know anyone who is into backpacking, they’re probably a fan of REI. REI is an outdoor apparel and equipment company that has a stellar reputation.

They built their brand loyalty by:

1. Dominating a niche space
2. Championing quality (being selective about inventory)
3. A cheap lifetime membership that gives access to exclusive offers
4. 1-year “no-questions-asked” returns for members
5. Giving fantastic customer service both in-store and online
6. A general willingness to trust the customer and take short-term losses for long-term loyalty

Trader Joe’s

Trader Joe’s fans are so in love with TJ’s products that a man named Pirate Joe built an entire business smuggling Trader Joe’s products across the Canadian border until he was sued and shut down[*].

Trader Joe’s created its brand loyalty by:

1. Being unabashedly themselves (e.g. not having traditional vegetable aisles)
2. Having a reputation for treating their staff well (customers feel good about contributing to a kind company)
3. Creating a wide group of exclusive products instead of relying on third-parties
4. Staying in touch with trends, particularly plant-based foods
5. Devoting additional labor and resources to customer service

How to Build Brand Loyalty

“Rewarding loyalty for loyalty’s sake–not by paying people for sticking it out so the offering ends up being more attractive–is not an obvious path, but it’s a worthwhile one. Tell a story that appeals to loyalists. Treat different customers differently, and reserve your highest level of respect for those that stand by you.” — Seth Godin

Quality over quantity

Assuming you are trying to build long-term loyalty, avoid sacrificing quality for growth. If your business is thinking about subbing in a cheaper material or outsourcing an aspect of your business because it would save money, think carefully about how this could impact the experience of your brand. If it would sacrifice too much, don’t do it.

The data doesn’t lie:

Via Yotpo

Harness reciprocity

Reciprocity is a fundamental effect in human psychology that ties back to our most basic instincts. If someone does a favor for us, we feel bound to do a favor for them. Or even more powerful, if we do a favor for someone, we are more likely to do another favor for them.

Use reciprocity to build brand loyalty by giving back to your customers. Maybe you surprise them with an extra item in your order. Or maybe you extend a free trial to someone who needs a bit more time to decide. All of these small moments of reciprocity add up to form a group of people who respect you and want to see your business succeed.

Be consistent

Consistency is another core psychological principle your business needs to respect. Consistency is related to reliability, and it boils down to expectations vs. reality and quality control. A breach in consistency may be interpreted as a betrayal, which can make customers turn on you. So whatever you do, do it well and don’t change anything without being explicit.

Take a stand

It’s riskier, but if you align your business values with those of your core customers, you can develop brand loyalty faster. You could donate a portion of sales to a particular organization, use your brand as a platform for what you believe in, and choose to voice your opinion instead of staying silent during sensitive moments.

For example, if you were a “zero-waste” drink company, you may want to consider discussing environmental concerns.

Personalize your messaging

People want to be known. Talk to them like they are individuals and do your best to develop actual relationships. Nothing is more important to brand loyalty than the relationships you build, and these grow deeper and faster with personalized messaging and hands-on approaches like phone calls over robocalls, recognizing their buying history with you during customer service calls, and segmenting your email list to be more specific. These tactics may be more expensive to implement, but they are worth it.

Invest in customer service

Mistakes are inevitable, so how you handle them matters. Examine your customer service apparatus and see if there are opportunities where you can bend a bit more for your customers. Seek to understand and satisfy first, and watch your repeat customers grow and grow. This is also a fantastic way to get reviews — people love to tell stories about good experiences.

Develop community

Another clever way to build brand loyalty is to create a space for value and connection to happen outside of your products and services. Maybe you sell cameras and set up a place for creators to meet each other. Or perhaps you moderate a forum on email marketing if you’re an ESP platform.

Reward loyalty

Whatever you do, build mechanisms that reward brand loyalty. From Chick-fil-A’s reward program to flight points, “getting something back” for spending is a critical component of building loyalty. The trick? The program has to be good, which usually means being more expensive, but when designed correctly, the results are worth it.

Plus, new technology like cryptocurrency are presenting some fascinating opportunities to create monetary incentives around brand engagement. Imagine being able to give consumers a crypto kickback for every ad they watch and every purchase they make. That tech would encourage users to seek out new opportunities to interact with your brand, increase engagement during the ad experience, and build goodwill through reciprocity and rewards. It does wonders for ROI, and it’s where the internet is headed.

See how attaching crypto to your ads can have an incredible effect on your marketing ROI.

Threats to Brand Loyalty

Negative changes in a product

55.3% of consumers are brand loyal because they love the product, and poor product quality is the number one reason why a brand would lose a loyal customer (51.3%) [*].

One bad experience with a product can lose a long-term customer. People are terribly unforgiving, which is why having good customer service is so important.

Macro Trends

Change is usually good, but if you’re caught on the wrong side of it, you could be left in the dust. Environmental concerns are a great example. If your business uses a ton of plastic, you may be losing customers over time who don’t want to contribute to that degree of waste, and the flow could be slow enough to disguise where you’re hemorrhaging.

Dishonesty and Controversy

We’re looking at you, Papa John’s. After founder John Schnatter’s infamous racial slur, sales plummeted by 16%[*]. With clear substitutes for cheap pizza, Papa John’s was at particular risk for losing customer and brand loyalists.

Your next steps with brand loyalty

Your first step is to build an action plan. Start with a top-down analysis of all of your customer-facing mechanisms and see how you can promote the elements of brand loyalty we discussed above. Then, turn that into a to-do list and start making it happen. The sooner you can make these changes, the better.

ASK: your new secret power for creating unrivaled brand loyalty

Brand loyalty is built on relationships and respect, and while some tools let you attempt this at scale, many fall flat and feel impersonal.

Instead of treating people like cash cows, start respecting them by using the ASK cryptocurrency to compensate and pay people for their data and time. By using ASK as the vehicle for your marketing incentives, you can dramatically increase your short-term conversion rates and generate long-term good will, which builds brand loyalty.

For example, let’s say a new customer starts a free trial for your SaaS company, and you know that when people invite a team member into your platform, your sales conversion rate increases by 30%. In other words, sharing the platform with a team member is a critical KPI for your team.

Now, let’s say instead of just having a prominent CTA, you attach a cryptocurrency value to that KPI, say 100 ASK. This creates a monetary incentive to take that critical step with you, and the effect this has on conversion rates is incredible.

That’s the power of ASK, and you can start using it right now.

See what we’re all about.

Permission Announces Availability on Google Cloud Marketplace to Accelerate Permission-Based Advertising

Permission will integrate into Google Cloud Marketplace, expanding access to its infrastructure for marketers to build opt-in audiences and reward consumers for engagement.

Permission, a leading provider of permission-based digital advertising, today announced the availability of its blockchain validator node and blockchain full node on Google Cloud Marketplace. With both of these offerings available on Google Cloud Marketplace, users will have access to Permission’s secure private blockchain to send transactions, test and install dApps, while earning Permission’s ASK token, the currency for permission.

When it comes to advertising, Permission enables marketers to build opt-in audiences and ask permission for engagement, therefore ensuring users have control over their data use and are rewarded for what they choose to share. The company’s infrastructure is designed to help brands address fundamental problems in digital advertising such as compliance with global privacy regulations, ad blockers and ever-changing ad tech trends that call for a new and improved permission-based advertising model. As a result, companies can build better trust and loyalty while improving their ROI and the overall Web 3.0 experience.

Two key Permission offerings are now available on Google Cloud Marketplace:

Permission Validator Node

The Permission validator node essentially validates the network, solving the proof-of-work puzzle and therefore maintaining the network’s integrity. Users will be able to run the validator node on a Google Cloud server, which will enable them to participate in the consensus mechanism and earn ASK for running the node. This opportunity will be available for approved Permission partners only. Details on the validator node application process will be released soon. While members are welcome to spin up validator nodes on their own, those nodes will be unable to earn ASK until they are accepted into the Permission network.

Permission Full Node

The Permission full node allows users to run a full Permission blockchain node on a Google Cloud server, making it possible to access the Permission blockchain in a truly private, self-sufficient and trustless manner. The node verifies all the transactions and blocks against consensus rules by itself, which means users won’t need to take any extra steps to verify trust in the network because they will be able to verify data themselves with this client. The Permission blockchain node will also allow for more secure installation of dApps. In turn, Google Cloud will have the ability to reach potential new customers interested in running nodes on a Google Cloud server.

“Our mission is to lead the web toward a new engagement model, one that enables users to own, control and profit from their time and personal information, while engaging with the web as they might normally do,” said Charles Silver, Founder and CEO of Permission. “At the same time, Permission has built tools and infrastructure that power a highly-effective, consent-based advertising model, enabling brands to engage with willing consumers to increase ROI, drive conversion, and build trust. We look forward to working together with Google Cloud to usher in the next wave of permission-based advertising.”

Permission marketing is the marketing strategy starchild of the early 2000s, and for good reason. Grounding marketing in respect and user privacy has repeatedly proven its value, and some of the common practices of permission marketing are so widespread today (e.g. email opt-ins and lead magnets), that it’s hard to imagine a world without them.

But even when something starts in the zeitgeist and settles into industry practice, it’s easy to overlook the fundamentals that make it great. We’re going to give a thorough overview of Permission Marketing, explain how to use it in your own business, and talk a bit about the future of permission marketing.

What Is Permission Marketing?

Seth Godin, the famous marketer and blogger who coined the term in 1999, defines permission marketing as “the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them.”

Godin’s brilliant observation was that as attention became more scarce and consumer control over information rose, interruptive marketing would become less and less effective. And how can businesses succeed in a world of attention scarcity? By asking permission to communicate.

At its core, permission marketing is about respecting modern consumers. It is the antithesis to traditional interruption marketing, which steals time from consumers. TV commercials, telemarketers, and street advertisers are all examples of interruption marketing.

“Permission is like dating. You don’t start by asking for the sale at first impression. You earn the right, over time, bit by bit.”

The goal of permission marketing is to create a relationship so powerful that your audience looks forward to your communication. On his blog, Seth Godin says, “real permission works like this: if you stop showing up, people complain, they ask where you went.”

Permission marketing includes practices like lead magnets, content marketing, email opt-ins, opt-in value exchange ads, and any other format that explicitly asks permission before marketing to a prospect.

The 6 Commandments of Permission Marketing

There are a few tenets Godin recommends thinking about when engaging in any permission marketing:

1. Anticipation: people will anticipate the service/product information from the company.
2. Personalization: the marketing information explicitly relates to the customer.
3. Relevance: the marketing information is something that the consumer is interested in.

These are a good start, but I’d also add in:

1. Consent: The marketer should always ask and obtain consent before beginning or altering an agreed-upon relationship in any way.
2. Transparency: It is the responsibility of the business to be as transparent about their intent as possible and enable control of the relationship to the customer.
3. Data Minimization: Data types such as first-party data should be used at the minimum amount necessary to ensure relevance and personalization.

These commandments are all important from a marketing perspective, but your choices around data collection and control are now also a legal concern with the passing of data privacy laws like the CCPA, CPRA, and GDPR.

Fortunately, permission marketing and the legality of data privacy play nicely with each other.

The Most Common Channels of Permission Marketing

The ideas behind permission marketing are used in all channels these days, but here are some of the most common ways businesses use it.

Permission Marketing in Email

Email marketing that runs on permission marketing means having a list that is entirely created with opt-ins — no email scraping or buying allowed. These can be created via RSS feed opt-ins or regular newsletter opt-ins after a customer reads a blog.

Permission Marketing in Social Media

If you think about it, social media, excluding the advertising functionality, is built on permission. Users choose to follow you. They choose to watch your stories or subscribe to your channel based on the value you give them.

Approach your social media with a value-first perspective instead of a sales-first perspective, and you will have a much higher chance of seeing a positive ROI through social media.

Permission Marketing in SMS Marketing

You have to be careful with SMS marketing since texts are so personal, but SMS marketing is a great way to use permission marketing if a customer wants to hear from you. You need to be explicit and narrow with your use of texts, but as long as you’re transparent, it can be a great asset.

The most popular examples of permission marketing in SMS includes:

1. Appointment confirmations
2. Giveaway opportunities
3. Contests / event marketing

Permission Marketing in Content Marketing

This is arguably the most popular avenue for permission marketing. Companies around the world have recognized the value of creating great content and information for free as a way to get in front of potential customers.

In fact, that’s exactly what we’re doing with this blog. The idea is to demonstrate expertise and give value upfront — that way you build goodwill and respect in the eyes of your prospective customers.

By having their content rank on search engines, companies can drive users to their site and encourage them to opt-in to a newsletter or sales call via lead magnets (more content behind an email wall) or contact forms.

The Benefits of Permission Marketing

There are all kinds of upsides to operating under a permission-based marketing model, but some of the big ones are:

1. Increases Conversion Rates

Because permission marketing operates by consent, each person who gives you permission to be marketed to by default is a more qualified prospect. In other words, the act of raising their hand and saying “talk to me” qualifies them as someone worth talking to.

This fact offers fundamentally higher conversion rates at the top of your funnel in terms of email open rates and customer engagement and all the way to the bottom of your funnel in terms of close rate and customer lifetime value.

2. Lowers Costs

Because a lot of permission marketing strategies such as content marketing are inbound (customers finding you) instead of outbound (you finding the customer), costs are lower.

For example, it is much cheaper to email thousands of opted-in subscribers than it is to mass mail a city with physical mailings.

3. Reduces Churn Rates

Another benefit of consent and personalization is that it fosters real relationships. Customers feel understood and begin to proactively rely on your business for certain information, tools, or services. This strengthening of customer relationships lowers churn rates on email lists and encourages repeat purchases.

4. Prepares Your Business for Data Privacy Regulations

California and the EU are leading the charge against invasive data practices that have ripped customer data ownership away from users and given it en masse to huge internet companies by passing comprehensive data privacy laws that subject companies to massive fines for breaches.

Consent and minimizing data use are fundamental to these laws, so by approaching all of your marketing through the lens of permission and consent, you will by proxy prepare yourself better for these legal responsibilities.

The Downsides of Permission Marketing

While permission marketing is a fantastic approach, there are some downsides to consider.

1. Takes More Time

Because a lot of permission marketing strategies like SEO, blogging, and email marketing can take time to build up and execute upon, you may not see as much short-term revenue as you would from interruptive advertising.

This is especially true for more established businesses that have never invested in permission marketing beforehand.

2. Still Relies on Interruptive Marketing

There’s an irony in permission marketing called the initiation paradox, which essentially says that you need to interrupt a customer to earn their consent. This is evident in permission marketing but is not absolute.

For example, you could interrupt a customer’s time with genuinely useful information that they can then choose to act on, which would prove the paradox, but you can also create blogs that users find by proactively searching for terms and topics relevant to them — and then they can choose to hear more from you.

That wouldn’t support the paradox because the customer controlled every aspect of the relationship.

3. Requires More Care and Upkeep

Sticking true to permission marketing isn’t always easy. You have to respect your customers by not going beyond what was promised, and it takes a lot of labor and time to give your customers a positive, valuable, and entertaining experience.

It’s the difference between building your own email list by spending hours and hours releasing guides and giving advice and just buying an email list and slapping a sales discount on it. The latter is way easier, but the former is so much more effective in the long run.

Permission Marketing Best Practices

1. Divide Your Marketing Into Customer Lifecycle Stages

It’s useful to think of your customers as if they were on a journey. A journey from not knowing who your company is to being an evangelist who loves sharing you with the world. This is commonly referred to as a “marketing funnel” because you’re pulling people from the top to the bottom.

The easiest way to think about your funnel is by dividing your customers into stages, or levels. The most common levels permission marketers use are:

1. Awareness: Are aware of their problem but not the solution.
2. Consideration: Are evaluating their choices for the solution they need.
3. Decision: Are determining if your solution is the right choice for them.

Then, you can build content that speaks to users at each stage. For example, in the consideration stage, you could create a blog that talks about all of the specific solutions available to a customer’s problem. So if you were a password manager, then you could write about all of the different types of password managers available.

But even within those are more layers and distinctions worth thinking about. For more on customer lifecycle stages, go here.

2. Provide an Obvious Way to Deepen The Relationship

As an extension of the “stages” idea, you need to always give the customers a direct way to ascend to the next level of engagement.

If they are on a blog, they should have a way to get on the email list. If they are on the email list, they should have an opportunity to buy a product. If they’ve bought a product, they should have the chance to buy again or buy a different, high-value product.

Give your customers a chance to opt-in at every point.

3. Make Iteration Fundamental to Your Strategy

Part of permission marketing is always improving your messaging, and improving your messaging is best accomplished by being more personal, more useful, and more relevant.

This should never feel “completed”, and iterating on your marketing across each segment should be an ongoing project.

4. Invest in Long- and Short-Term Strategies

Because permission marketing can take a bit to get off the ground, you should invest in short-term marketing strategies such as PR and more traditional marketing to bolster your permission efforts.

For example, you could take a great piece of content you wrote and advertise it to potential customers, or you could pay for a feature on someone else’s list.

These are great ways to be presented to new audiences — especially if every time you engage in these marketing actions you do so with the idea that you’re trying to give a potential customer something useful.

The Future of Permission Marketing

Permission marketing will continue to be more and more ingrained into marketing as time goes on. Zero-party data and blockchain both offer interesting opportunities for permission marketing.

The transparency of blockchain also gives the entire internet ecosystem a fascinating opportunity: the chance to return data ownership to users and compensate users for interacting with ads.

This is the ultimate expression of permission-based marketing because users opt-in to the advertising of their choice, which best matches companies to potential users and improves the experience for both businesses and customers.

Conclusion

Permission marketing is the industry standard for online marketing and for good reason. By grounding yourself in respect-based engagement and personalization, you can attract the best prospects for your company at the lowest cost while encouraging long-term customer retention.