For years, third-party cookies have been the backbone of online advertising, allowing marketers to track user behavior across the web and deliver targeted ads. But this era is drawing to a close, driven by growing privacy concerns and stricter regulations. As major browsers like Safari, Firefox, and soon Google Chrome bid farewell to these tracking morsels, marketers must adapt their acquisition strategies to thrive in a cookieless future.
What are third-party cookies?
Third-party cookies are snippets of code placed on a user’s browser by a website other than the one they are currently visiting. These cookies have been instrumental in tracking user behavior across different sites, enabling advertisers to target ads based on users’ browsing history and preferences. For example, if you browse for running shoes on one site, you might see ads for similar products on a completely different website. This cross-site tracking has been essential for precise behavioral targeting, audience segmentation, and ad measurement.
Privacy concerns and regulations
However, the use of third-party cookies has raised significant privacy concerns. Many users are unaware of the extent to which their activities are tracked, leading to discomfort and distrust. These concerns have driven regulatory actions like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States, which mandate stricter controls over user data and consent.
In response to these concerns and regulations, major browsers like Safari and Firefox have already started blocking third-party cookies. Google Chrome, the most widely used browser, is set to follow suit by the end of 2024. This shift marks the end of an era for digital marketing, forcing marketers to rethink their strategies.
Decreased ability for precise behavioral targeting
Without third-party cookies, marketers face a reduced ability to perform precise behavioral targeting. The granular data that allowed for detailed audience segmentation and personalized ad delivery will no longer be readily available. This limitation means that marketers will need to find new ways to understand and reach their audiences.
Measuring ad performance and attribution
Another significant challenge is the difficulty in measuring ad performance and attribution across multiple websites and platforms. Third-party cookies have provided a straightforward way to track conversions and attribute sales to specific ads. Without them, marketers must rely more on first-party data and develop new models for attribution, making it harder to prove the return on investment for ad spend.
Increased reliance on first-party data
As third-party data becomes less accessible, the importance of first-party data—information collected directly from a brand’s own digital properties—will increase. This shift requires marketers to build robust data collection strategies on their own platforms, such as websites and mobile apps.
Importance of first-party data
First-party data includes information collected from direct interactions with customers, such as website visits, purchase histories, and CRM data. This data is incredibly valuable because it comes from individuals who have already engaged with the brand, offering insights into their behaviors, preferences, and needs. By focusing on first-party data, brands can build stronger, more direct relationships with their customers.
Tactics for collecting first-party data
To effectively gather first-party data, marketers should prioritize obtaining opt-in consent from users. Transparency about data collection and its intended use can build trust and encourage users to share their information. Offering incentives or value exchanges, such as discounts or exclusive content, can also motivate users to provide their data.
Progressive profiling is another effective tactic. This approach involves gradually collecting more detailed information about users over time, rather than asking for all data upfront. For example, a brand might start by asking for an email address during the initial interaction and then request additional information, like preferences or purchase history, in subsequent engagements.
Leveraging customer data platforms (CDPs)
Customer data platforms, or CDPs, are critical tools for unifying and activating first-party data. CDPs aggregate data from various sources, creating a comprehensive view of each customer. This unified data can then be used for personalized marketing efforts, enhancing the relevance and effectiveness of campaigns. For instance, if a user frequently visits a website’s sports section, a CDP can help tailor content and offers related to sports.
In the cookieless environment, email marketing emerges as a first-party data hero, offering a direct and personal channel to engage with customers. Unlike other forms of digital marketing, email allows for a one-to-one connection, where subscribers willingly share their preferences and interests.
Building your email list
To capitalize on the power of email marketing, marketers should focus on building their email lists by offering valuable lead magnets. These can look different depending on the industry you’re in, be it an ecommerce company (think coupons, promotions, etc) or an insurance provider (research reports, whitepapers). Encouraging newsletter signups, offering valuable content, exclusive offers, and personalized experiences can entice users to subscribe and share their information. This not only helps in growing the email list but also ensures that the data collected is accurate and willingly provided by the users.
Enhancing offline customer data
Marketers should also enhance their offline customer data by integrating email addresses and other relevant information. By doing so, they can create a comprehensive view of their customers, combining online and offline interactions. This holistic approach allows for better segmentation and targeting, leading to more effective marketing campaigns.
Leveraging email insights
Email marketing provides a wealth of insights that can be used to refine acquisition strategies. Tracking engagement metrics such as open rates, click-through rates, and conversion rates can help marketers understand what resonates with their audience. Additionally, using surveys and feedback forms within emails can gather direct input from customers, further enriching the first-party data pool.
Second-party data sharing partnerships
In addition to first-party data, second-party data—data shared between trusted partners—can supplement a brand’s data collection efforts. These partnerships can involve data exchanges or collaborations where both parties benefit from each other’s audience insights. For example, a fitness app and a sportswear brand might share data to enhance their marketing efforts.
Emerging identity solutions
As third-party cookies phase out, emerging identity solutions and alternate identifiers are gaining traction. These include contextual targeting, where ads are served based on the content being viewed rather than user behavior, and cohort-based targeting, where users are grouped based on shared interests or demographics.
Robust martech infrastructure
To navigate these changes, a robust marketing technology (martech) infrastructure is essential. This includes tools for identity resolution—connecting various data points to build a cohesive customer profile. Investing in technologies that support data integration and analysis will be crucial for adapting to the new landscape.
Challenges in attribution modeling
Attribution modeling, which assesses the contribution of various marketing efforts to conversions, becomes more complex in a cookieless world. Traditional models that rely on third-party cookies will need to be rethought. Marketers must find new ways to track and measure interactions across different touchpoints.
Potential solutions
First-party measurement tools and data clean rooms offer potential solutions. Data clean rooms allow brands to collaborate with trusted partners in a secure environment, enabling them to match and analyze data without directly sharing it. Multi-touch attribution models, which consider multiple interactions leading to a conversion, can also provide a more comprehensive view of campaign performance.
The deprecation of third-party cookies marks a significant shift in digital marketing, but it also presents an opportunity for brands to strengthen their acquisition strategies. By focusing on first-party data, building strategic partnerships, and investing in robust martech infrastructure, marketers can adapt to this new reality.
The death of the cookie doesn’t have to signal the end of effective marketing. Instead, it can be the catalyst for more meaningful and sustainable customer relationships. By rethinking data strategies and leveraging new technologies, marketers can continue to deliver personalized and impactful campaigns, ensuring long-term success in a privacy-first world.
Stephen Taunt is an Email Marketing Strategist at Data Axle. With over a decade of data and client relations experience under his belt, he has worked within multiple industries ranging from the music business to global aviation media. In his current role, Stephen develops targeted and personalized email marketing strategies that optimize engagement, conversion, and customer retention, while closely monitoring key performance indicators to drive measurable success for clients.