The phase-out of third-party cookies has deep implications for tracking and targeting in marketing. It requires a proactive shift in the way marketers approach ad targeting, and a revision of the tools and techniques used to deliver targeted content to consumers.
A good first step is for marketers to understand the role third-party cookies play in their campaigns today. Do you use them to retarget website visitors? Do they help drive decisions about which content to send? Are you leveraging them to track performance across campaigns and channels?
Digital marketing maturity is the new normal
In a recent BCG study, nine of ten marketers say that first-party data is important, but only a few use its full potential. According to the report, while first-party data is data that brands collect directly, it is not data they own. Ownership is in the hands of consumers, and the data comes with restrictions that require explicit permission on how it can be used.
Many consumers are happy to have their data used in ways that benefit them, if they understand what that means, while others are cautious. Regulators have stepped in with new rules to protect consumers’ data rights, and the major web browsers are moving toward more user control over the data collected from them. Responsibility and best data practices have become prerequisites in data-driven marketing.
The report highlights two core values brands will have to adopt. First, transparency: the ability to give users complete control over consent while being upfront about the reasons for collecting data and the potential benefits to the brand. Second, value: the incentives that come with consenting, such as a better user experience.
Digitally mature brands go further in implementing data best practices. They develop both an internal and external code of data responsibility rooted in good conduct and stewardship.
The case for a first-party data strategy
A survey by Treasure Data explores the impact of rising costs on consumers, how inflation is changing spending habits, and what marketers are doing in response. The survey confirms that businesses and consumers alike are being squeezed by tightening budgets, forcing them to reevaluate priorities. Seven in 10 (69%) marketers have already had to cut budgets due to rising business costs, and many are bracing for further reductions, particularly within larger businesses. Marketers also admit they waste 38% of their budgets due to poor optimization of customer data, a significant loss of almost $6 million based on the average marketing budget over the past six months being more than $15 million.
In an interview with Exchange Wire, Sandy Ghuman, Managing Director at Silverbullet, highlights how publishers are adapting to first-party data, and how brands can navigate the current economic climate. She says, “Today (and tomorrow) gaining trust and delivering a true value exchange is vital for brands of all shapes and sizes, and with online regulations becoming stronger and discussions of data ethics more prevalent, privacy must become a priority as we close out 2022 and step into 2023 and beyond.”
She adds, “Strategy will prove critical in the privacy-first era. Brands and agencies must adhere to continuously changing timescales and regulations. A large part of safeguarding for the unknown is building a future-proofed data strategy centered around privacy. We know ad tech is continuously evolving, and that understanding is crucial to ultimately drive a better experience for the customer and better performance.”
With all this fragmentation, marketers are constantly challenged to identify the right channels to reach their target audiences, then figure out the best ways to leverage each one with the right first-party data strategy.
Preparing for 2023 starts with getting that plumbing right. Talk to our team about building a first-party data strategy that holds up.