Future-Proof Your Marketing: Harness First-Party Data with Google Ads Enhanced Conversions

The digital marketing landscape is experiencing a profound transformation as third-party cookies are phased out, compelling businesses to reassess their data strategies. Google’s recent advancements in AI-powered creative tools, such as image-to-video transformation and AI outpainting, highlight the growing importance of first-party data in crafting personalized, high-impact campaigns. Google’s Enhanced Conversions, a privacy-centric solution, is emerging as a game-changer by enabling advertisers to leverage first-party data more effectively. This shift isn’t just about compliance—it’s about future-proofing marketing strategies in an era where consumer trust and data accuracy are paramount. Companies like Subaru have already demonstrated the power of integrating first-party data with Google Ads, achieving measurable improvements in cost per conversion and ad performance. As marketers navigate this transition, the ability to harness first-party data and AI-driven tools will separate industry leaders from the rest.

I. Challenges in Leveraging First-Party Data

While first-party data offers unparalleled accuracy, its implementation is fraught with challenges. Internally, organizations must build consensus across departments—from legal to IT—to establish robust data infrastructure. Externally, data fragmentation remains a significant hurdle, especially for businesses like Subaru, where customer interactions span multiple touchpoints, including dealerships and online platforms. Before 2016, Subaru’s data was siloed across departments, making it impossible to connect online browsing behavior with offline purchases. The solution required not just technological integration but also cultural change, as teams had to align on the value of unified data for Google Ads optimization. For many businesses, the first step is overcoming internal resistance and investing in systems like Customer Data Platforms (CDPs) to consolidate disparate data sources for seamless Google Advertising integration.

II. Case Study: Subaru’s Data Integration Journey

Subaru’s transformation into a data-driven marketer began in 2016 with the creation of an integrated marketing platform. By 2020, the company unified its customer data under "SUBARU ID," a single identifier linking online and offline interactions, from test drives to service appointments. This was powered by Treasure Data CDP, which enabled Subaru to analyze customer behavior holistically. Machine learning models identified high-intent buyers, allowing dealers to prioritize leads with the highest conversion potential. The key to Subaru’s success was its phased approach: first, consolidating internal data, then integrating with external platforms like Google Ads. This groundwork ensured seamless adoption of Enhanced Conversions later, proving that long-term data strategies yield compounding returns.

III. Linking First-Party Data with Google Ads

For Subaru, integrating first-party data with Google Ads served two critical goals: understanding potential customers earlier in their journey and accurately measuring video ad performance. Traditional methods relied on broad demographics, but Enhanced Conversions and Customer Match within Google Advertising allowed Subaru to target users based on actual behaviors, such as website visits or brochure requests. By sharing hashed customer data with Google, Subaru improved bidding efficiency while maintaining privacy compliance. The results were striking—a 20% reduction in cost per conversion and a 14.5% increase in catalog requests for specific models. These tools also enabled Subaru to attribute offline sales to digital campaigns in Google Ads, a previously elusive metric.

IV. Results and Benefits of Enhanced Conversions

The tangible benefits of Enhanced Conversions extend beyond Subaru. Advertisers using this feature in Google Ads report higher accuracy in conversion tracking, especially for cross-device and offline actions. For example, video ads, often considered "top-funnel" tactics, became measurable drivers of dealership visits and test drives. Enhanced Conversions also optimize Google’s AI-driven bidding, ensuring budgets are allocated to high-performing segments. In Subaru’s case, the synergy between first-party data and AI reduced wasted ad spend and increased ROI—a compelling case for businesses hesitant to transition from third-party cookies.

V. Broader Applications of AI and Data Integration

Google’s Performance Max (P-MAX) campaigns illustrate the upcoming frontier of AI-driven marketing in Google Ads. By automating ad placements across Search, YouTube, and Display, P-MAX maximizes reach while minimizing manual effort. Case studies from MonotaRO and Ito-Yokado highlight its versatility: MonotaRO achieved a 48% higher ROAS, while Ito-Yokado replaced declining flyer campaigns with digital ads, driving an 890% return on ad spend. These successes underscore AI’s role in unifying fragmented strategies, from prospecting to remarketing in Google Advertising.

VI. The Role of Brand Equity in Pricing Power

Marketing’s impact extends beyond customer acquisition—it directly influences pricing power. Kantar research reveals that strong brands can command prices up to twice as high as competitors, with reduced price elasticity. A skincare brand’s 14% price hike, supported by brand-building campaigns, led to a 7% revenue increase despite lower sales volume. Similarly, McCain Foods reduced price sensitivity by 47% over nine years through consistent branding. For CFOs skeptical of marketing’s ROI, these metrics bridge the gap between brand investment and profitability.

These outcomes highlight the tangible financial returns of brand equity, bridging the gap between marketing expenditure and CFO-level profitability metrics. For businesses seeking to replicate such results, tools like Topkee’s TTO attribution platform can quantify the impact of brand campaigns on pricing resilience. Additionally, Topkee’s AI-powered creative production ensures brand messaging aligns with equity-building goals.

VII. Generative AI in Retail and CPG Marketing

Generative AI is revolutionizing retail by enhancing creativity and efficiency. Retailers using AI tools report a 57% improvement in customer experience, with applications ranging from personalized styling recommendations to automated ad content. For instance, AI-generated product descriptions and visuals enable faster campaign deployment, crucial for capitalizing on trends like Black Friday. Security is another upside—55% of retailers leveraging AI detect fraud more effectively. As generative AI matures, its ability to hyper-personalize experiences at scale will redefine customer engagement.

Topkee’s AI-driven creative suite exemplifies this shift, offering automated ad content generation and data-driven personalization at scale. For instance, Topkee’s tools analyze consumer behavior to produce tailored ad creatives, similar to how leading retailers use AI to match products with individual preferences. As generative AI matures, its ability to deliver context-aware, scalable personalization—will redefine engagement strategies. Retailers adopting these technologies, whether through in-house solutions or partners like Topkee, gain a competitive edge in converting browsing into sales while optimizing marketing spend.

Conclusion: The Future of Data-Driven Marketing

The convergence of first-party data, AI, and privacy-compliant tools like Enhanced Conversions in Google Ads is reshaping marketing. Businesses that invest in integrated platforms, as Subaru did, will gain a competitive edge in targeting and measurement. Meanwhile, AI-driven campaigns and brand-building strategies will unlock pricing power and operational efficiency. For marketers, the path forward is clear: embrace data unification, leverage AI for automation, and align branding with financial outcomes. Those ready to take the next step should consult Topkee's experts to tailor these strategies to their unique needs.

Appendix: 

• Subaru’s First-Party Data Integration
• Google P-MAX Campaign Success Stories
• Brand Equity and Pricing Power
• Generative AI in Retail