Customer identity key to enhancing user interactions and marketing strategies
In a surprising turn of events, Google has postponed its plan to phase out third-party cookies, initially set for 2025, and has announced that it will abandon the cookie depreciation altogether, following prolonged industry objections. This move raises questions about the long-term viability of third-party cookies for customer acquisition and retargeting, prompting marketers to reconsider their dependency on these cookies.
Google's decision follows a series of delays and backtracking on its cookie deprecation initiative. The search giant initially removed third-party cookies from 1% of its Chrome browser users in January of this year, but faced further pushback from the industry and legal concerns. The announcement to eventually abandon the cookie depreciation came in July.
The prolonged saga of Google's cookie policy has likely left many marketers feeling a sense of relief, but it also necessitates a deeper examination of their dependence on third-party data. Particularly concerning is the lack of clarity around Google's proposed user-controlled 'blanket consent' model.
For over two decades, third-party cookies have been indispensable for marketers, enabling them to identify customers, track shopper behavior, and power their marketing efforts. However, this over-reliance on cookie-based tools has been exposed following research from Wunderkind's 2024 CMO State of the Union Report. Nearly two thirds (63%) of marketers are heavily reliant on third-party cookies to support their customer engagement strategies. This heightened dependence is not without concern, with nearly 3 in 5 marketers expressing worry about Google's cookie cull before its surprising reversal.
In response to the growing uncertainty surrounding third-party cookies, marketers are seeking alternative solutions to maintain effective customer engagement. These alternatives include zero and first-party data technologies that foster direct, personalized connections with customers.
A greater emphasis is being placed on the collection of first-party data. Retailers, in particular, are turning to first-party data as an alternative to third-party cookies, with three-quarters (75%) already implementing first-party data in their customer engagement strategies. Over half of retailers (52%) are also employing zero-party data.
By prioritizing first-party data, brands and retailers can reduce their dependency on third-party cookies and address the broader challenge of the privacy-centric web. Successive changes, such as the introduction of GDPR, the increased adoption of ad blockers, and Apple's ATT, have all centered user control and consent. By moving towards zero- and first-party data-led strategies, brands can 'own' both their audiences and their channels rather than 'renting' them.
In addition to the shift towards first-party data, customer identity management and the ability to effectively identify non-logged-in website traffic remain crucial for achieving personalization at scale. As such, many retailers are now focusing on reducing third-party cookie reliance by prioritizing first-party database growth and leveraging owned channels, such as email and text, to reach customers directly, personally, and cost-effectively.
Pexels/Sofya Zakharova
- The delayed and reversed decision by Google on cookie depreciation has pushed marketers to explore alternative technologies for maintaining effective customer engagement, such as zero and first-party data solutions.
- The growing uncertainty surrounding third-party cookies and the gradual shift towards privacy-centric web practices have necessitated a focus on finance and business strategies that prioritize first-party data collection.
- The widespread use of third-party cookies in marketing and business foridentifying customers, tracking shopper behavior, and powering marketing efforts has been challenged in recent years, with the rise of technology solutions like zero and first-party data management.
