The death of the third-party cookie isn’t the end of the world. While some marketers might think a cookie-less data world spells out the demise of targeted campaigns, it doesn’t. But it means finding new ways to target audiences with greater precision.
While markets don’t have to worry for now, following Google’s latest announcement, going cookie-less stands to benefit consumers and marketers. Increased privacy is one of the wins for the public. And for companies, it’s the ability to drive better outcomes from advertising. Embracing change is all about modifying your mindset so you see the positives and opportunities. It’s time to discover why a world without cookies is actually a good thing.
Cost-Effective Targeting
Marketing campaigns cost money. Even if there isn’t a huge ad spend earmarked in the budget, someone’s got to make a campaign happen. And from a staffing perspective, time means money. The C-suite wants to see a return on resources spent.
So, while the data from third-party cookies can help deliver profitable outcomes, it’s not always the most cost-effective. Think of it as emailing a generic promo message to anyone visiting your website. Yes, you’ll get a few conversions. But, you’re more likely to get more unsubscribes, spam reports, and non-responses.
Third-party data told you these people might be interested. Yet, the truth is, the information isn’t granular enough. On the other hand, data models like predictive audiences get to the specific people most likely to convert. A predictive audience leverages data you collect directly from customers, focusing on their behaviors. Instead of wasting resources on consumers who aren’t interested, you’ll reduce your cost per conversion and cut out third-party costs.
Increased Consumer Privacy
Here’s the deal. People don’t really understand what companies are doing with their data. Pew Research Center says 67% of the public has little to no understanding of how organizations use their personal data. And when people don’t understand something or believe they have control over it, concerns go off the chart.
The center’s research also says 81% of Americans have concerns about how companies are using their data. When you go online, you don’t want someone to be able to watch and track every move you make. Nonetheless, it’s essentially what third-party cookies do. It’s like being a teenager and having your parents tag along on every social outing — intrusive and overbearing.
A cookie-less data world gives consumers a better understanding of how their data is being used. It also hands them back the reins. Do they want to share their preferences with a company they buy from weekly? Sure, no problem. But maybe not when it comes to a random website they’ve been visiting for only a few minutes.
Enhanced Accuracy
Accuracy goes back to the reliability of third-party data. OK, so a cookie tracks what consumers do online. You get a big-picture view of what topics and products are pulling people in. Yet, clickbait doesn’t always translate to genuine long-term interest. With third-party cookie data, you’ve got aggregate information that may be misleading (at least on the surface).
For instance, maybe you start exploring the websites of athletic shoe manufacturers and retailers. Third-party cookies would take this as a sign you’re interested in buying a new pair of running shoes. But what if you’re browsing those sites because you’re scoping out the competition or conducting research for a story? You don’t fit into the category of ready-to-buy.
Furthermore, you may not fit into an athletic shoe company’s target market at all. Maybe you can’t stand the idea of running or hitting the gym. If you get any kind of marketing communications about athletic gear, you ignore them at best. First-party data eliminates these errors by leveraging information from a company’s consumers, including prospects. Marketers can personalize messages, refine lists, and glean precise insights.
Relationship-Building Opportunities
A cookie-less world means you have to act less like a spy and more like a trusted partner. Consumers want genuine connections with brands. They’re also more willing to buy when those connections exist. Research shows 76% of consumers will purchase from a brand they feel linked with. Plus, 57% of people will be more likely to boost their spending with brands they relate to.
Gathering first-party data through surveys, online chats, and customer relationship management systems requires relationship-building. You can’t take a back seat to the process. You have to engage, take initiative, and help consumers see your brand’s value. Data from third-party cookies may be convenient, but it doesn’t lay the groundwork for trust.
Would you answer if a stranger knocked on the door to try to sell you something? Say you do happen to open the door out of curiosity or to get your dog to stop barking. Once you find out the person is making a pitch, would you engage in meaningful conversation? There’s only a slim chance. Relying on third-party cookies for marketing campaigns sets you up for the same scenario.
The Benefits of a Cookie-less Data World
When things you’re used to threaten to shift, it can be unsettling. Using predictive behavioral tools and first-party data stands to become the norm. The increased cost-effectiveness, consumer privacy, accuracy, and relationship-building that come from it are reasons to celebrate. A cookie-less data world is a step in the evolution toward less invasive, more relevant outreach.