Prepare for a cookie-less future in advertising and e-commerce
7 min read
7 min read
by Milica Stankić
Third-party cookies are essential for tracking user activity, customizing advertising, and boosting conversions in the realm of digital marketing and e-commerce. The use of third-party cookies is, however, fast dwindling due to rising data privacy concerns and privacy restrictions. As a result, companies and marketers need to prepare for a world without cookies in advertising and online sales. Businesses will survive by embracing new technology, taking a privacy-first stance, and emphasizing user experience. This blog post will cover techniques for adjusting to the new environment, assess the effects of these changes on e-commerce, and investigate the consequences of a world without cookies. So let’s get started!
For many years, cookies have been crucial to online marketing and e-commerce. They are tiny text files kept on a user’s computer or mobile device that hold facts about their online behavior, including browsing history, preferences, and login information. Websites and advertisers utilize this information to customize user experiences, display appropriate adverts, and monitor user activity.
Third-party cookies, or cookies from websites other than the one the user is viewing, have come under fire recently, though. Privacy advocates and regulators have highlighted concerns regarding the gathering and sharing of user data without consent or transparency, resulting in increased scrutiny and regulation in the past few years.
Also, the most common web browser, Google Chrome, wants to phase out third-party cookies by 2023, as do web browsers like Safari and Firefox. Their extinction will significantly impact businesses and marketers using third-party cookies for ad targeting and measurement. Without third-party cookies, it will be more difficult to trace user behavior throughout the internet, restrict the capacity to customize adverts and make campaign evaluation more difficult.
The cookie-less future, however, also offers a chance for companies to reconsider their marketing plans and concentrate on creating deeper connections with their clients. Businesses may prosper in a post-cookie environment by switching to first-party data, embracing new technologies and solutions, and taking a privacy-first stance.
Third-party cookies are on the decline, as mentioned, and businesses will need to adjust to a new reality where user data is less accessible. Switching to first-party data is a crucial step in preparing for this transformation.
Information that has been obtained directly from clients or users who have interacted with a company or its website is known as first-party data. Email addresses, past purchases, and internet usage are some examples of this data. Businesses have complete control over using and storing first-party data because it is obtained with the user’s permission.
will be even more crucial for businesses to create personalized experiences and boost conversions in a post-cookie era. Since first-party data originates from the original source and is less likely to include errors or be the victim of fraud, it is more trustworthy than third-party data. Offering more individualized experiences and promotions also enables businesses to forge closer bonds with their clients.
First-party data can be gathered by businesses in a variety of ways, such as email sign-ups, account creation, loyalty programs, and surveys. It is crucial to give people specific, convincing reasons for sharing their data and to be open and honest about how the data will be used.
To navigate the cookie-less future, organizations will need to adopt new technologies and solutions in addition to switching to first-party data. In this section, we’ll look at some of the cutting-edge tools and strategies that businesses can use to target customers and offer tailored services without third-party cookies.
Instead of depending on user data or third-party cookies, contextual advertising entails displaying adverts that are relevant to the content of the website or app. For instance, a website about fitness or running can have an advertisement for running shoes. Without personal information, contextual advertising can effectively reach consumers and deliver valuable and pertinent advertising.
Without third-party cookies, identity resolution is the process of identifying and tracking users across various devices and channels. This can be done via logins, mobile device IDs, or email addresses. Identity resolution enables companies to build more comprehensive consumer profiles and offer individualized experiences across many touchpoints.
Businesses must develop a privacy-first strategy that respects consumers’ privacy and preferences as they prepare for a world without cookies. By putting user privacy first, businesses can win over more customers, protect user data, and comply with new privacy regulations.
Data collection and use should always be transparent! Companies should be open and honest about the data they gather and the ways in which they use it. Additionally, users must be allowed to opt out of data collecting, and clear and unambiguous privacy rules must be provided.
Users’ choices and permission should be taken into account! Users’ preferences for how their data is used should be respected, and businesses should acquire their consent before collecting and using their data. This includes giving users the option to opt-out or have their data deleted and opt-in options for data gathering.
Respect for privacy laws is another crucial aspect that must be considered. Businesses must abide by regional laws and other privacy standards. This entails giving users proper warning and gaining their consent in a clear and unambiguous manner before collecting their data, protecting that data, and enabling users to access, alter, or delete it.
As we’ve stated, digital marketing and advertising will be significantly impacted by a world without cookies. But what about online shopping? E-commerce companies will be significantly impacted by the fall of third-party cookies. Businesses will need to make investments in new technology and solutions to create tailored experiences, target their audience, encourage conversions, and perform successful retargeting and remarketing campaigns in order to get ready for this transformation. While this change may bring on some difficulties, there is also a chance for businesses to stand out from rivals and forge closer connections with their customers.
E-commerce revenue has largely been driven by targeted advertising, which enables companies to market to consumers with offers and products they’ll find useful. Without third-party cookies, companies must rely on alternative targeting strategies, such as contextual advertising, to reach their target market. Ad campaigns may become less effective due to this change, especially in sectors that largely rely on third-party data.
A key factor in the success of e-commerce is conversion rate optimization (CRO). CRO uses data insights to determine the best conversion-driving strategies, including calls to action, checkout procedures, and product page optimization. Any business should rely on alternative data sources, such as first-party data and consumer feedback, to power CRO initiatives without third-party cookies.
To make up for lost sales and encourage repeat business, retargeting and remarketing efforts are crucial for e-commerce enterprises. To identify visitors who have visited a website or abandoned a basket and provide personalized messages, many campaigns mainly rely on third-party cookies. Without third-party cookies, companies would have to rely on other types of information, such as email addresses and device IDs, to properly deliver their messages.
Lastly, the cookie-free future offers substantial chances for companies to forge closer ties with their customers, but it also has a number of drawbacks and restrictions. Businesses must be ready to invest in emerging technologies and solutions, adhere to customer preferences and privacy laws, and maintain continuing updates and maintenance. Even though these obstacles might be formidable, they are not insurmountable, and companies that can successfully negotiate this new environment will be well-positioned to prosper in the post-cookie era.