If you’re up to date with the latest from Google, then you’ve most likely heard the news that Google Chrome plans to phase out third-party cookies this year. If you haven’t been keeping up, we’re here to help you prepare for a cookie-free future and understand what it means for data collecting and advertising.
BUT FIRST, WHAT ARE THIRD-PARTY COOKIES?
If you’re like most brands, your digital advertising campaigns are probably managed by a third-party “adware” or advertising platform that streamlines the complicated job of targeting and serving your ads across the internet for you.
Third-party cookies are one of the primary tools these platforms rely on to track individuals as they browse the web and use their activity to collect user information for advertising purposes. For example, if you search for engagement rings on Google and visit a specific company’s website to view their offerings, you might start seeing various ads promoting a different company’s engagement rings on sites such as Facebook.
When a person is served an ad that is extremely relevant to them at the time, maybe because of a recent search, like in the example above, or even a purchase they made or an article they’ve read, they become suspicious that someone is listening or tracking their every move.
The collection and use of users’ personal data has come under question as more people become aware of the value of their own information. This has caused a shift in the digital advertising landscape, resulting in important updates like Google phasing out third-party cookies, as well as a demand for more transparency and control over how this data is used.
UNDERSTANDING THE IMPACT OF COOKIES FOR DATA COLLECTING
Google’s sunsetting of third-party cookies does not mean the end of targeted digital advertising by any stretch—it just means that advertisers and advertising platforms will have to be more innovative in how they reach prospective customers.
Currently, multiple data sets—not just third-party cookies—are used to create an audience pool for ad campaigns. Understanding these data sets is more crucial than ever for effective audience targeting.
Zero-party data refers to information that individuals willingly and proactively provide to businesses or organizations such as surveys, preference settings, feedback forms, or direct communications. This provides valuable insight into customer preferences, interests, and intentions as it is provided directly by the individuals themselves.
First-party data is information collected directly from individuals who interact with a brand or organization and is owned and controlled by either the advertiser or publisher. This provides insight into existing customers’ behaviors, preferences, and interactions with a brand across various touch points such as websites, mobile apps, and offline channels. Advertisers can use this data to segment audiences, personalize messaging, and retarget users based on their past actions.
Second-party data refers to first-party data collected by one entity and shared to another for mutual benefit. This data is obtained through a direct relationship between the data provider (seller) and the data recipient (buyer). It allows advertisers to access additional insights about specific audiences beyond their own customer base.
Third-party data, which is not the same as third-party cookies, refers to data that did not originate with the buyer or seller. Its origin is with a third party. This includes various types of information, whether it be demographic, interest, or intent based.
Each type of data offers unique advantages and insights, allowing advertisers to refine targeting strategies and deliver more personalized and relevant messages, all while trying to maintain a confidence of compliance to those being reached.
GET READY FOR THE END OF THIRD-PARTY COOKIES NOW
With the elimination of third-party cookies on Google Chrome, companies must be ready to engage in more creative data collection and consumer targeting strategies. Fortunately, for most marketers, the onus of this relies heavily on the advertising platforms and ad agencies they’ve entrusted to manage their digital marketing campaigns.
As a marketer, the smartest thing you can do is to make sure you have partners in place who can help you navigate the cookie-less future in a way that protects your brand from growing privacy regulations without sacrificing the incredible ROI that digital advertising can deliver.
For more information on media strategy and planning please contact Fern Friedberg, Media Director, at ffriedberg@devaneyagency.com.