Third-party cookies are quickly disappearing, which comes with problems for many businesses and marketing agencies.
Why are they disappearing? Well, they have sustained an unfortunate reputation. First, consumers did not care that they existed. But when they started to track consumer behavior across multiple websites, many consumers felt spied upon and found it an intrusion into their privacy. With the disappearance of third-party cookies, many companies will have difficulty tracking their audiences.
Fun fact! According to eMarketer, about 82% of ads relied on cookies, and more than 77% of websites had one or more tracking cookies.
What also did not help was that third-party cookies were never really accurate in what they were made for, providing precise targeting and measurements for marketers. According to Comscore, 55% of cookie-based measures are overstated, and 35% of cookie-based demographic targeting is inaccurate.
Third-party cookies are inefficient and are not helping brands succeed in providing personalized experiences or in providing them with a unified view of customer activity.
With all these privacy-conscious consumers, how do we continue to provide them with personal experiences without invading their privacy?
Consumer trust will be high on every business’s list.
People are knowledgeable that they share information across the web and with whom. Therefore brands must be transparent toward consumers. This means that consumer trust and data governance will be a strategic priority.
Suppose your business manages to gain consumer trust by ensuring their privacy. You will have a sustainable competitive advantage, which is something every company should pursue. Want to find out about other ways to gain consumer trust, read this blog by Hubspot.
We expect to see more data-centric roles within businesses in the coming years. These roles will be focused on managing and safeguarding the mountains of data that companies now possess.
In addition to having strong IT skills, these data stewards must also be well-versed in compliance and privacy law. They will be responsible for creating policies on data governance and usage.
First-party data will be essential.
Marketers have long been struggling to keep up with the ever-changing landscape of the internet. Recently, with the addition of Google, Apple, and Mozilla’s pledge to block third-party cookies, it seems as though things are only going to get more complex.
The end goal for marketers remains the same: build digital experiences that focus on consumer trust and create long-lasting relationships.
To do this in the current climate, marketers need to be able to collect first-party data, which can then be used for analysis and activations. This shift in focus will be essential for companies that want to succeed in the long run.
So what is first-party data?
First-party data is information a company collects about its customers through its channels. This data is typically collected through online forms, surveys, and customer interactions.
First-party data is precious to companies because it provides insights into customer behavior and preferences. Additionally, first-party data can be used to create targeted marketing campaigns and personalize the user experience.
While first-party data is an essential asset for any business, it’s also important to remember that this data should be treated with care. First-party data is subject to strict privacy laws, and companies must take steps to protect this data from unauthorized access.
Companies should also be exploring second-party partnerships with other brands. When collecting first-party data, it can be powerful to layer it with second-party data since you will be able to create look-a-like personas based on that.
Second-party data is first-party data shared among companies, but be sure that your customers consent to share their data!
Real-time personalization is going to be key
What is it?
“The ability for a company to present contextually relevant content to each customer or prospect at any interaction point.” (redpointglobal, 2022).
For example: showing a consumer Apple accessories on your website since he clicked on your Apple advertisement yesterday.
We think your ultimate goal as a company should be to be as relevant as possible to your customers while not invading their privacy or over-personalizing. Yes, that is also a danger; if you are too specific with personalization, you will also create a feeling of intrusion, so beware of that!
Here at CroudX, we are implementing personalization by collecting first-party data. With the first party, we create ‘customer performance analytics’. You can observe changes in behavior between new and returning clients, as well as how this connects to other countries.
To close this article off
The ability to respond quickly and adapt to changes in the marketplace can mean the difference between success and failure. The quickly declining third-party cookies are having a huge impact on all of us.
While some companies are struggling to adjust, others are thriving. The key is being able to identify the changes that are happening and then responding quickly and effectively.
It is not the strongest of the species that survive, nor the most intelligent, but the one more responsive to change.” ~ Charles Darwin
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