Top 3 Things B2B Marketers Must Do NOW to Prepare for a Cookie-less Future

By early 2025, the marketing landscape will be completely different. Google’s long-anticipated phase-out of third-party cookies, first announced seven years ago, is finally approaching. Originally expected in 2024, the timeline has now shifted to give advertisers and marketers more time to adjust and strategize. Importantly, this phase-out does not affect all cookies.

What’s Changing and What’s Staying?

Google’s plan focuses on eliminating third-party cookies primarily used for advertising and cross-site tracking purposes. These cookies help advertisers deliver targeted ads but are considered intrusive by many privacy advocates. On the other hand, first-party cookies, which websites use for essential functionalities like session management and remembering user preferences, will remain unaffected.

Understanding the Impact of Third-Party Cookies

What are Third-Party Cookies?

Third-party cookies are small text files placed on a user’s device by a website other than the one they are currently visiting. These cookies are primarily used to track user behavior across multiple websites, gathering data on preferences, interests, and browsing history. This information is invaluable for advertisers, publishers, and ad exchanges as it allows them to deliver highly targeted ads based on the collected user behavior. By tracking user behavior, third-party cookies enable the creation of detailed user profiles, which are then used to serve ads that are more likely to resonate with the target audience.

Why are Third-Party Cookies Being Phased Out?

The phase-out of third-party cookies is driven by increasing concerns over user privacy and data security. Internet users are becoming more aware of the extensive data collection practices, which impact consumer trust, and are seeking greater control over their personal information. Regulatory frameworks like the General Data Protection Regulation (GDPR) have heightened scrutiny of data protection practices, compelling companies to prioritize user privacy. In response, major web browsers such as Google Chrome, Safari, and Firefox are discontinuing support for third-party cookies. This shift necessitates that advertisers and publishers explore alternative methods for tracking user behavior and delivering targeted ads while ensuring compliance with data protection regulations.

Fortunately, marketers still have the advantage of collecting data from their individual properties, such as websites, apps, or physical stores. This is what we refer to as first-party data. Customers willingly share their interactions through first-party data. Since this information is gathered from direct contact with customers, it is considered credible, realistic, and trustworthy.

1. Leveraging First-Party Data

First-party data is the goldmine of the digital marketing world. Collected directly from users through interactions on a website or app, this data includes email addresses, purchase history, and browsing behavior. Unlike third-party data, first-party data is gathered with the user’s consent, making it more reliable and valuable. Leveraging first-party data allows businesses to build stronger relationships with their customers, deliver personalized experiences, and refine their marketing strategies. Data management platforms play a crucial role in effectively leveraging first-party data.

To effectively leverage first-party data, businesses can employ several techniques:

• Collecting User Data: Utilize forms, surveys, and feedback mechanisms to gather valuable information directly from users.
• Analyzing User Behavior: Monitor and analyze how users interact with your website or app to gain insights into their preferences and interests.
• CRM Systems: Implement customer relationship management (CRM) systems to manage and segment user data, enabling more targeted marketing efforts.
• Personalized Content: Create and deliver personalized content and recommendations based on the specific preferences and interests of your users.

By focusing on first-party data, businesses can enhance their marketing strategies and foster deeper connections with their target audience.

The Importance of First-Party Data

First-party data is a crucial component of a cookieless future. It refers to the data that a company collects directly from its customers, such as through website interactions, mobile apps, or email subscriptions. This data is unique to the company and offers a high level of trustworthiness and authenticity. First-party data allows businesses to build direct relationships with their customers, deliver personalized marketing efforts, and improve customer experiences.

In a cookieless future, first-party data will become even more valuable as it provides a reliable way to track user behavior and deliver targeted ads. Companies that have invested in collecting and leveraging first-party data will be better equipped to adapt to the changing landscape. Moreover, first-party data is compliant with data privacy regulations like GDPR and CCPA, making it an essential component of a comprehensive cookieless strategy.

Examples of First-Party Data Collection

• Demographics: Collected through platforms like GA4, including age, gender, ethnicity, and geographic location.
• Contact Information: Gathered through website forms or direct communication, such as email sign-ups or contact submissions.
• Website Activity: User behavior metrics, such as clicks, views, and search queries. Analyzing website activity provides valuable customer insights that can help tailor marketing strategies.
• App Usage Behavior: Including session duration and in-app purchases.
• Purchase History: Details on past transactions, product preferences, and order frequency.

2. Harness Zero-Party Cookies

Zero-party cookies remain a valuable asset for marketing strategies; these cookies carry information that customers voluntarily share with a specific brand.

Zero-party cookies can be collected from:

1. CRM (Customer Relationship Management) integration
2. CDP (Customer Data Platform) deployment

While zero-party cookies can raise concerns about online tracking, the interchangeable benefits can encourage users to willingly share their data. Adhering to data protection regulations such as the California Consumer Privacy Act (CCPA) is a decisive point for acquiring consumer trust and encouraging users to share their data. Merging data into a unified repository helps mitigate data fragmentation, ensuring a more streamlined and efficient data management process.

Additionally, businesses should showcase their privacy policies (which comply with regulations) that precisely outline the type of data being collected and its intended use.

Data Collection Strategies

To prepare for a cookieless future, businesses must develop effective data collection strategies. This involves collecting data directly from customers through various channels, such as:

1. Website Interactions: Collecting data through website interactions, such as form submissions, purchases, and browsing history.
2. Mobile Apps: Collecting data through mobile apps, such as in-app purchases, usage patterns, and location data.
3. Email Subscriptions: Collect data through email subscriptions, such as open rates, click-through rates, and conversion rates.
4. Customer Feedback: Collecting data through customer feedback, such as surveys, reviews, and ratings.

Businesses must also ensure that they have the necessary infrastructure in place to collect, store, and manage first-party data effectively. This includes investing in data management platforms, customer relationship management (CRM) systems, and data analytics tools.

3. Integrating and Deploying Data Solutions

In a cookieless future, integrating and deploying robust data solutions is crucial for effective data collection, management, and utilization. This involves implementing data management platforms (DMPs), customer data platforms (CDPs), and other data solutions that can help businesses harness the power of their data.

To integrate and deploy data solutions, businesses should follow these steps:

• Assess Current Data Infrastructure: Evaluate your existing data infrastructure to identify gaps and opportunities for improvement.
• Choose the Right Solutions: Select data solutions that align with your business goals and objectives, ensuring they can handle the specific needs of your organization.
• Implement Data Governance: Establish data governance policies and procedures to maintain data quality and security, ensuring compliance with regulations.
• Train Employees: Educate your team on best practices for data management and analysis to maximize the effectiveness of your data solutions.
• Monitor and Evaluate: Continuously monitor the performance of your data solutions and make necessary adjustments to optimize their effectiveness.

Adapting to a Cookieless Future

Adapting to a cookieless future requires a fundamental shift in marketing strategies. This involves:

1. Building Direct Relationships with Customers: Businesses must focus on building direct relationships with their customers through various channels, such as email, social media, and customer service.
2. Delivering Personalized Experiences: Businesses must use first-party data to deliver personalized experiences to their customers, such as targeted ads, content recommendations, and product suggestions.
3. Investing in Data Analytics: Businesses must invest in data analytics tools to gain insights into customer behavior, preferences, and interests.
4. Developing Alternative Tracking Methods: Businesses must develop alternative tracking methods, such as using device IDs, IP addresses, and browser fingerprinting, to track user behavior.

Alternative Tracking Methods and Identifiers

In a cookieless future, businesses must develop alternative tracking methods and identifiers to track user behavior. Some of these methods include:

1. Device IDs: Using device IDs to track user behavior across devices and platforms.
2. IP Addresses: Using IP addresses to track user behavior and deliver targeted ads.
3. Browser Fingerprinting: Using browser fingerprinting to track user behavior and deliver targeted ads.
4. Contextual Targeting: Using contextual targeting to deliver ads based on the content of a webpage or app.

Businesses must also invest in developing alternative identifiers, such as:

1. Email Addresses: Using email addresses as a unique identifier to track user behavior and deliver targeted ads.
2. Phone Numbers: Using phone numbers as a unique identifier to track user behavior and deliver targeted ads.
3. Customer IDs: Using customer IDs as a unique identifier to track user behavior and deliver targeted ads.

Creating a Comprehensive Cookieless Strategy

Creating a comprehensive cookieless strategy requires a holistic approach that involves multiple stakeholders and departments. Businesses must:

1. Conduct a Data Audit: Conduct a data audit to understand the types of data being collected, stored, and used.
2. Develop a Data Strategy: Develop a data strategy that outlines how data will be collected, stored, and used.
3. Invest in Data Analytics: Invest in data analytics tools to gain insights into customer behavior, preferences, and interests.
4. Develop Alternative Tracking Methods: Develop alternative tracking methods and identifiers to track user behavior.
5. Train Employees: Train employees on the importance of data privacy and security, and ensure that they understand the company’s data strategy.

Take These Steps Now to Prepare for a Cookie-Free Future with User Privacy in Mind

All in all, a cookie-less future is inevitable, but instead of panicking, you can take strategic actions now to stay ahead of the competition. Focus on storing first-party data in a centralized system to prevent data silos, practicing good data hygiene to keep information current, and adhering to data privacy standards to build trust with your customers. Additionally, incentivize data sharing by offering valuable privileges, and optimize your marketing campaigns by engaging users at peak times. Additionally, businesses should explore alternative tracking methods to continue delivering targeted ads without relying on cookies.

Frequently Asked Questions

Which technique has the potential to replace cookie targeting?
Contextual targeting is a great candidate; it shows ads in a specific context so that they are relevant to what customers are interested in at that moment instead of targeting them based on their personal data or previous behavior.

How can predictive analytics help with a cookie-less future?
Predictive analytics plays an important role in forecasting customer behavior; it utilizes sophisticated algorithms that analyze historical data, which aids in long-term user engagement.

What points encourage customers to share their data with a business?
Clarity is the key; most customers do not mind sharing their data as long as the business is transparent about how the data will be used and asks for their permission for its collection.

Get Prepared for a Cookie-less Future with Avid Demand

Are you fully prepared for a cookie-less future? Get in touch with Avid Demand today to grasp the techniques that will help you on your mission to broaden your customer base in a cookie-less future.

Bassem Salem November 15, 2024

Bassem Salem is a Senior Paid Media Manager at Avid Demand. He has extensive experience managing successful campaigns across nearly all ad platforms.