The digital marketing industry is rapidly changing, and the end of third-party cookies is just one of the many developments that businesses need to be aware of. With Google expected to phase out these cookies from the end of this year, businesses must adapt their digital strategies to survive in this new era. This article aims to explore how this change affects the industry and what steps businesses can take to navigate it successfully.
Third-party cookies have been used by advertisers to track the online behavior of users, which is then used to inform targeted advertising. This system has been criticized for its intrusive nature and, as a result, we have seen more privacy-focused legislation emerge, such as GDPR. Another factor is the growing concern for user privacy which influenced Google’s decision to eliminate third-party cookies. This change in the industry will give way to new methods of data collection and audience identification.
The end of third-party cookies presents challenges as well as opportunities. For example, advertisers may find it more difficult to identify their desired audience, making targeted advertising less precise, and returning to more generalist approaches. However, with the right approach, businesses can use this change to their advantage. First-party data, data that is collected directly from users who have engaged with your business, will become essential in audience identification. This makes collecting data from visitors important for businesses, and developing products such as newsletters, email marketing campaigns or loyalty programs that generate first-party data will become more crucial.
Fortunately, there are already many options available to businesses looking to capitalize on first-party data. For example, businesses can utilize web analytics such as Google Analytics, allowing you to examine the behaviour of your website’s visitors. For businesses that use a Customer Relationship Management (CRM) system there are further options, with CRM data such as email addresses and contact information proving valuable for personalized marketing.
Another area for businesses to consider is contextual advertising. This is where adverts are placed on websites with relevant content, rather than with an audience in mind. Contextual advertising can be useful to reach new audiences who may have interest in your products or services but are not yet part of your database. This approach will not rely on the collection of user data, so businesses won’t be impacted by changing privacy laws.
The end of third-party cookies presents both challenges and opportunities for businesses. However, with the right approach, businesses can ensure they remain competitive in the digital marketing industry. The emphasis on first-party data and contextual advertising will require businesses to create more targeted, user-friendly experiences. Ultimately, audience identification and user privacy will be at the heart of modern digital marketing, and businesses that can adapt and offer a good customer experience will stand out. Taking the right actions now will positively impact the future of your business in a cookieless world.