Google’s much anticipated ‘Cookieless Future’ is finally upon us. This titanic change has been talked about for nearly 4 years and has seen multiple deadline extensions during this period. Here is what you need to know about it all.
What’s actually happening and who does it impact?
In response to an ever increasing demand from consumers to protect online privacy (and pressure from regulators) Google announced that 3rd Party Cookies will be phased out of their Chrome browser.
This was a massive blow to the ad space as although the importance of privacy is undeniable, the reality is that the digital ad ecosystem has relied on 3rd Party Cookies for everything from tracking through to targeting and as a result their removal genuinely jeopardises the running and measurement status quo.
What are 3rd party cookies, how are they collected, and who uses them?
A 3rd Party Cookie is a Cookie that is placed on a user’s device by a domain that is not the domain of the site that user is visiting. The purpose of this is to collect data for the 3rd Party, which typically then either gets directly used by that 3rd Party or sold on to an AdTech company (or both) for them to use.
Advertisers and Social Media platforms have historically relied heavily on this data to inform targeting strategies as it gives them the ability to tailor ads (or offer tailored targeting) to the personal data provided and this has unsurprisingly proved to be highly effective when it comes to digital campaigns.
With the industry being so heavily reliant on 3PC then this change represented a massive risk to the performance of existing campaigns. As a result, the entire industry has had to pivot in order to find new ways to achieve the same outcomes without infringing on new privacy regulations.
The importance of first party data
The number one solution to this problem is for advertisers to try and maximise the quantity and quality of their owned data. This 1st Party Data will become the foundation of all customer centric targeting moving forwards so it needs to be as good and plentiful as it can possibly be.
1st Party Data can be collected from website, apps, social media platforms, advertising analytics and any other properties that are owned by the advertiser. The importance of this data cannot be understated and as a result we recommend making a conscious effort (and investment…) to build out these lists.
How to get hold of first party data
Nearly all of the major ad platforms offer campaign types that allow you to prioritise building out your CRM and although some industries will already be very familiar with these (e.g. B2B), for others it will have never been a priority. Lead Gen campaigns are perfect for driving these sign ups directly. LinkedIn may have built its reputation on these campaign types, but the rise in popularity across Facebook and Google shows how the mentality of the advertising space has already begun shifting.
Equally, the importance of diversifying your ad platform portfolio has never been higher. Even if you ignore the less than ideal news stories that have come out about Facebook and X in recent times, the breadth of audience profile that can be found across the likes of Snap, Reddit, Quora, Twitch and more is now too significant to ignore. The aim has to be to find as many new potential CRM members as possible and this expansion gives you the biggest possible pool to fish in.
Finally, with all of this centring around the brand, the brand properties and the value of the brand to potential customers then it should go without saying that actual investment in Brand is absolutely essential. Gimmicks and shortcuts won’t cut it in the cookieless future and genuine value is required if you want to survive and ultimately thrive.
Maximising the value of your first party data
1PD has been pushed for years by Google as a route to improving campaign performance and giving you an edge over the competition. However, the Cookieless changes have now meant that this has moved from a ‘nice to have’ to a ‘top tier priority’ and there are three main ways to get the most from your 1st Party Data:
Customer Match
Uploading customer lists to the platform fills some of the 3PC gap and should deliver even better performance by ensuring that your bespoke audience is appropriately targeted.
Enhanced Conversions
Modelled conversions based on joining the dots between the visual drop off in a buyer’s journey and the completion of a sale.
Offline Conversions
This focuses on filling some of the gaps that 3PC leaves by incorporating confirmed sales and thus reinstating your ability to track, measure and optimise to results that better reflect reality.
Embrace AI
The biggest benefit to incorporating this 1st Party Data though is undoubtedly the knock-on effect that it has on the various ‘Smart’ features within the platform. Google’s AI thrives on data – the bigger the amount of high quality data the better – so introducing premium 1PD audiences as well as more complete 1PD measurement means that optimisations are as informed as possible and better able to take actions that will ultimately deliver against your goals.
Third Party Cookies are going and there is no way of changing that, but it shouldn’t be viewed as all doom and gloom. Privacy is important and the industry wide push towards quality has seen us take huge steps towards doing things better. On top of this, if you embrace the new world and take 1PD seriously then this is one of the few genuine opportunities to get ahead of any lacklustre competitors and gain an edge in an ever more competitive market.
