If you are struggling to remember the last time you went on a website that didn’t include a pop-up about cookies, that you either had to accept (the easy option) or reject (usually involving a good couple of minutes unchecking boxes before you even get to use the site), then you aren’t alone.
The EU cookie law (ePrivacy Directive) came into effect in 2002 and was created to regulate the processing of personal data, more specifically, the use of cookies on websites.
This meant that companies had to install a pop-up notice to let users know that they were being tracked and given the option to consent.
However, this is all about to change as both Google and Apple are doing away with third-party cookies (3P) and device identifiers, meaning that marketers and businesses will have to change the way that they reach their target audiences.
There are a lot of rumours floating around about what will replace this technology, with a lot of uncertainty adding fuel to the fire, so let’s break it down and discuss what cookies are, what the alternatives are, and what changes you can make to your strategy to combat these.
The Baking Basics: Demystifying the role of cookies in marketing
Cookies are small pieces of data that websites store on your browser and serve as snippets of information exchanged between your browser and the websites you visit.
These text files play a crucial role in enhancing your online experience by remembering your preferences and tracking your activities.
When it comes to marketing campaigns, cookies play a significant role in adding effectiveness and personalisation.
They provide marketers with insights into consumer behaviour, allowing them to tailor their messages and deliver targeted advertisements to the right audience at the right time.
By understanding user preferences, browsing patterns, and purchasing habits through cookies, businesses can refine their marketing strategies, engage customers, foster brand loyalty, and increase conversion rates.
Cookies enable marketers to serve personalised content, ensuring that customers receive relevant offers and recommendations.
By leveraging cookie data, businesses can continuously improve their campaigns based on real-time insights, just like refining a recipe.
Understanding customer tastes and interests through these digital markers helps create tailored experiences that resonate, building a stronger connection between brand and consumer.
However, this has made a lot of people question their privacy online, and understandably so.
Ad Tech companies have been harvesting and collecting data online for years and have amassed a huge amount of information on everyone who uses the internet, with very little control or regulation, and selling this information and (misinformation) to digital advertisers.
Subsequently, these advertisers have been feeding the Ad Tech beast by falling into their trap.
They were told that targeting was the key to success and many marketers are paying for ‘hyper targeting’, under the illusion that this will make their advertising more appealing to their target audience.
However, the proof is in the pudding, and this theory has been disproven as more people became fed up seeing too many adverts (often for things they have already purchased and would be unlikely to need duplicates of) and have added ad blocker extensions to their browsers.
Baking Up Success: Exploring the sweet alternatives to third-party cookies
With third-party cookies going the way of the dodo, several other ‘solutions’ have come to the forefront. These include:
- Google Privacy Sandbox
The most simplified way to describe the Google Privacy Sandbox is that it will allow online advertising without needing third-party cookies.
Google launched this tool to allow websites to see user information that doesn’t compromise the user’s privacy.
- Fingerprinting
A more meddlesome version of online tracking that is more invasive than cookies.
Digital fingerprinting occurs when a business or company creates a unique profile of you based on the information stored on your devices and browsers.
This includes what software you have, any add-ons and extensions, hardware, and even set-up preferences.
This all happens entirely on the servers’ side and therefore cannot be blocked by your browser, however, you can avoid this by:
- Using a VPN
- Disabling JavaScript and Flash
- Using private mode on your browser
- Updating your system and browser as required
- Federated Learning of Cohorts (FLoC)
Created due to the necessity of avoiding other more invasive ways of tracking, like the previously discussed ‘fingerprinting’, this advertising solution keeps data on separate browsers.
FLoC then assigns these browsers to a bigger group (aka cohorts) which consists of browsing data from thousands of users.
These cohorts will initially update every seven days and, depending on the user’s browsing history, will reassign to a different grouping that align more with their interests.
Recipe for Success: Key moves to future-proof your business without third-party cookies
Just under half (45%) of US and UK advertisers have not changed their advertising approach for five years and almost three-quarters (71%) of this same group have no plans to do anything differently in the coming year.
Google and Apple plan to completely phase out third-party cookies by 2024, so if you are one of the 71%, you still have time to review your digital strategy and come up with a new marketing plan that does not rely on this data.
We have pulled together the top five steps your business should be taking now to get ahead of the phase-out:
- Migrate to GA4
GA4 took over from Google Analytics on 1st July 2023, so your dashboard will already look different to what you were used to.
This upgraded version works across both apps and websites and supports tracking on both formats.
Instead of using third-party cookies, GA4 utilises machine learning and statistical modelling, and Google Tag Manager tracks the user ID (the unique identifier assigned to individual users, allowing for anonymous tracking of their behaviours and activities on websites or apps.)
This means that the user will stay anonymous, but their behaviours will be recorded, allowing marketers to understand more about how people are using your site.
- Gather First-Party Data
First-party data is information that you own and has been collected by your assets, such as:
- Surveys (online and offline)
- Sign-up forms/ newsletters
- Polls
This data has several benefits over third-party data as you can’t lose any rights to it, you don’t have to spend money buying it from someone else and it will be unique to your business (not to mention more accurate).
What you decide to put into it will be what you get out of it so focusing on first-party data collection and finding out what methods work best for your audience should be high on your marketing strategy priorities.
- Invest in Market Research
Determining who your audience is basic marketing 101. Cookies were an easy solution, but market research will now be crucial to identify where your potential customers/ users are without cookies.
You can get to know what your customers are using, and testing, via a mix of online and offline tools such as:
- Focus groups
- Observing behaviours
- Polls
- Targeted surveys
- Social media
- Analytics
- Feedback Q&As
- Buyer Personas
Finding what works for your existing customers opens the door to potential new customers, so getting to know what makes them tick will be paramount.
If you have a physical store, as well as an e-commerce presence, don’t forget to include offline data and combine this with your online data. This will help build a more rounded picture of your audience and open up more opportunities for targeting.
- Personalisation
When was the last time a brand or company made you feel special and appreciated and you didn’t feel like a number on a spreadsheet or a walking bag of money?
80% of customers who experience a personalised approach from brands are more likely to spend money with that brand so if you are looking to level up your marketing, utilise your first-party data and focus on personalisation.
- UX Design
A well-performing, strategically designed website is essentially your ‘shop window’, and monitoring how users are navigating the site and being aware of their journey will have a huge impact on your customer.
Employing the skills of a UX designer to audit your site and make improvements will help you understand the user experience of your customers and help you target their online behaviour.
Mixing up the marketing dough: embracing a cookieless landscape
While the concept of no third-party cookies may initially seem alarming to marketers and businesses alike, it is a huge opportunity to refresh the strategy and build a stronger foundation.
Utilising your owned media assets like your website, apps, and newsletters to build first-party data can help you connect with your customers and discover new audiences to target, while they maintain their privacy and you get more accurate information which your competitors won’t have access to.
Finding out what makes them tick, what their pain points are and personalising their experience will encourage future spending and improve your campaigns.
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TL;DR:
- Google and Apple are getting rid of third-party cookies, forcing marketers to find new ways to reach their target audiences.
- This article explores alternatives like Google Privacy Sandbox, fingerprinting, and FLoC.
- It also provides steps for businesses to adapt, including migrating to GA4, gathering first-party data, investing in market research, personalising experiences, and focusing on UX design.
- The cookieless future presents an opportunity to build stronger connections with customers while respecting their privacy and gaining more accurate information.