In the swiftly evolving landscape of digital advertising, a seismic shift is imminent. The demise of third-party cookies, which have long been the cornerstone of marketers' data-driven strategies. For years, utilizing web-based cookies and other personal identifiers enabled companies to track people online and target their advertising to specific types of users.
Google’s Chrome browser is poised to take a pioneering stance by blocking third-party cookies by the end of 2024—an action already embraced by Safari and Firefox. However, the challenges for advertisers extend beyond the impending cookie disruption. Notably, alternative tracking methodologies are also encountering mounting pressure, as exemplified by Apple's interventions within the in-app realm –requiring app providers to obtain explicit consent from consumers before tracking them using device identifiers.
With consumers’ expecting hyper-personalisation, gathering customer insights and data are crucial to deliver on the customers’ expectations and reach a target audience overall. This unfolding scenario presents marketeers with a unique challenge, compelling them to rethink and recalibrate their strategies.
Chapter 1 Challenging times for customer engagement? Definitely manageable!
Amidst this transformative period, a central theme emerges: the rise of transparency and value exchange. The effectiveness of personalised advertising hinges not only on tailored content but on the degree to which users are informed and empowered participants in the data-sharing process. According to the PwC customer loyalty survey of 2022, 82% of respondents expressed their willingness to share personal data if it leads to a better customer experience.
An example can be found in the international coffeehouse chain, Starbucks. The global coffee chain leverages customer data to personalise offers and marketing campaigns through its loyalty program, which has over 16 million members in the United States. They acquire data by combining loyalty systems, payment cards, mobile apps and even in-store equipment. The acquired data is processed through artificial intelligence in their "Digital Flywheel" program to suggest new products based on customer preferences. Starbucks also delivers mass campaigns tailored to specific consumer segments, including promotions for seasonal menus and relevant offerings. As third-party cookies and device identifiers decline, marketers find themselves at a crucial crossroads: risk falling behind or embrace alternative methods of data collection.
Chapter 2 Is first-party data sufficient?
Leading companies will have to leverage proprietary consumer touchpoints (e.g. own websites and apps) to amass first-party data. These data are collected in a passive manner, with user consent, resulting in a deeper understanding of user preferences. Recognised as a valuable resource, first-party data enables insights into user behaviour while maintaining a direct line of communication. However, relying solely on first-party data has its limitations, as the understanding of the complete customer journey and the creation of detailed user profiles require a broader approach.
For companies to genuinely comprehend their audience, they require insights into a user's intentions, preferences, and way of life. The adoption of zero-party data emerges as a strategic solution. Zero-party data are willingly shared by users in exchange for valuable incentives such as personalised product recommendations, exclusive access, or discounts. This mutual exchange not only fosters trust but also provides advertisers with a more comprehensive and nuanced view of individual preferences.
Chapter 3 Alternatives for a marketer in a privacy-first world
The emerging reliance on first and zero-party data raises a crucial question: How will marketeers address the generation of new leads and customers? A combination of three solutions will be considered best practice by leading companies in the future: Contextual advertising, collaborations & partnerships, and AI & machine learning. Contextual advertising is gaining prominence, where ads are placed based on the content of the web page rather than individual user data. This ensures relevancy and can still deliver effective results without relying on tracking personal information. Moreover, collaborations and partnerships with other platforms or websites (second party data) can also help marketers expand their reach and access new customer segments. By tapping into shared audiences, they can target potential customers based on mutual interests or demographics. Furthermore, AI and machine learning algorithms will play a significant role in analysing available data to identify patterns and predict consumer behaviour.
Chapter 4 CDP emerges as a strong solution
In the pursuit of a holistic understanding, leading companies turn to Customer Data Platforms (CDPs) to seamlessly amalgamate data from a diverse spectrum of sources. By incorporating data from zero, first, second and permissible third-party origins, CDPs empower marketeers to construct intricate user profiles and decipher intricate customer journeys.
This comprehensive approach ensures that brands, especially those in the B2B space, can offer highly personalized user experiences and employ targeted advertising strategies based on CRM insights, all while safeguarding the privacy of their users. The utilization of CRM data within the CDP framework further enhances the depth and precision of customer communication, facilitating stronger customer engagement and improved business outcomes.
In a landscape characterised by the waning influence of third-party cookies and device identifiers, the successful marketeer of tomorrow will be defined by their adeptness in navigating these transformative strategies. Leading companies will have to prepare for the changing marketing landscape by evaluating its impact, identifying necessary data and alternative audience reach methods, and establishing a data capture structure like a customer data platform (CDP). As the curtain falls on an era, a new narrative of personalised engagement and enhanced customer insights beckons, reshaping the future of digital advertising.
Contributors are Nicholas Dochy, Sr consultant, Timothé Karoui, Sr Manager and Bart Brusselmans, Customer Transformation Lead.
Thriving in a cookieless world
A first-party data strategy
Contact us
