Using First-Party Data to Fuel AI-Powered Marketing in Google Ads

AI is only as good as the data you feed it, which is why building a strong first-party data foundation is essential to getting the most out of AI-powered marketing in Google Ads. First-party data refers to the information you collect directly from your customers, such as website visits, email interactions, and purchase histories. This is often a blind spot for SME’s and in-house teams. Leveraging this data is critical for making Google Ads AI work efficiently, improving ad performance, and creating personalised campaigns that resonate with your audience.

In this email, we’ll discuss how first-party data drives AI success and share actionable steps you can take to strengthen your data collection strategy.

Why First-Party Data Is Essential for AI in Google Ads

Google Ads AI relies on data to make accurate predictions, refine customer segmentation, and optimise campaigns. The better your data, the more effective AI will be in helping you achieve your business objectives. According to the Google CMO Guide, “Your data fuels your AI. Collect and centralise first-party and proprietary data securely and compliantly, and make it accessible for marketing”

For SMEs, this means the more you know about your customers—whether it’s from form submissions, email sign-ups, or purchase histories—the better AI can help you target those customers and similar high-value prospects.

How SMEs Can Build a Strong First-Party Data Foundation

For many small businesses, collecting data may seem daunting, but it doesn’t have to be. Many already have the systems in place, start by leveraging theses tools you already have in place, such as your website analytics (Probably Google), CRM systems, or email marketing platforms.

Once this is in place your focus will move gathering more insights through customer interactions and building a secure, centralised data storage solution. But lets focus on the building blocks

Here are three key steps to building a solid first-party data foundation:

Consolidate Data Across Core Touchpoints: Gather data from your core customer touchpoints - website visits and email. For your website, and vital for Google AI Google Analytics 4 or Google Tag Manager will help centralise this data securely and ensure compliance with privacy laws.

Learn more about Google Analytics 4 here.

Learn how to set up Google Analytics 4 here.

Tracking the right things in Google Analytics 4 matters - this guide helps explain events and how to set them up

Focus on Data Quality: It’s not just about collecting as much data as possible—it’s about collecting high-quality, actionable data. Make sure your data is clean, accurate, and updated regularly to ensure AI can use it effectively. Ensure that your audience consents to data collection, especially under current privacy regulations like GDPR (for european customers)
Offer Value in Exchange for Data: Customers are more likely to share data if they see a benefit in doing so. Consider offering discounts, exclusive content, or personalised experiences in exchange for email addresses or purchase preferences. As the guide notes, “over 90% of consumers are willing to share their personal information for the right incentive”

The No Jargon Marketer POV

For smaller businesses, building a solid first-party data foundation is essential for making the most of AI-powered marketing. Without accurate, high-quality data, Google Ads AI won’t be able to effectively target your audience or optimise campaigns. SMEs that invest in data collection are not only improving their current marketing efforts but also setting themselves up for long-term success as AI becomes an even bigger part of digital advertising.

Collecting first-party data can take time, and it requires effort to ensure compliance with data privacy laws. However, by starting small and focusing on quality over quantity, you can gradually build a robust data foundation that will significantly enhance your marketing performance.

That’s it from The Lab for now. You can access the full Google CMO report here:

Google_CMO_Guide_Deck.pdf

As always any questions, ping a reply to this email and i will respond

Cheers

mc AKA The No Jargon Marketer

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