Cookie Crunch: Navigating the Digital Landscape in a Post Third-Party Cookie Era

New Year's resolutions are looming, and while I may be contemplating cutting back on those irresistible sweet treats, today we're talking about a different kind of cookies—the virtual ones that have been on the chopping block for what feels like an eternity. So, where do we stand on this cookie conundrum? Here's the latest:

Come January 4th, 2024, Google is rolling out its new Tracking Protection feature. Essentially, it's putting the brakes on websites using third-party cookies by default. At first, it'll hit about 1% of Chrome users globally. And if all goes well, Google plans to pull the plug on third-party cookies for everyone by the second half of 2024. Good news for consumers, but not-so-great for us marketers, right? We'll get into that later. When researching this topic, I did come across an interesting stat, did you know that 80% of marketers still depend on data from third-party cookies? Am I surprised? No.

First, I think it's important we cover what the loss of third-party cookies means to advertisers.

Third-party cookies enable browsers to track and share user identities across multiple sites, facilitating targeted advertising. They help drive reach, personalization, tracking and measurement and ad targeting. Sounds great, so why remove them? Well, as consumers began to understand the tracking properties of browsers, they began to express their discomfort with the invasive tracking and "personalized ads". This in turn led to the introduction of privacy laws and a rise of Consent Management Platforms (CMPs), empowering users to control cookie settings. While, browsers like Safari, and Firefox, removed third-party cookies due to the many privacy concerns, Google the largest player, inevitably would have to follow suit.

Many of us and our respective organizations have been preparing for this day for quite some time. Millions of pixels have been dispensed covering this very topic and how to best prepare for it, but I thought I would contribute to this conversation with four things that I believe marketers should be working on in preparation for the inevitable third-party cookie to crumble.

The four key areas of focus include:

1. The prioritization of your first-party data
2. Understanding the alternative targeting opportunities
3. Investing and building strong SEO practices
4. Integrate social listening into your tactics

Prioritization of Your First-Party Data

Due to the many targeting and personalization opportunities that existed through third-party cookies as marketers, we did not prioritize our first-party data sources. Sadly, it was more of an afterthought. While hindsight is always 20/20, we likely should been nurturing these data sets all along, me included.

When thinking about your first-party data sets, it is important that you begin with auditing your current data collection process. Make sure you are prioritizing things like location, preferences, interest and even purchase history. Then shift your attention to analyzing your existing data sets. Be sure to include things like CRM, user behaviour analysis tools, social media analytics etc. The idea is to determine patterns and trends within these data sets. As you begin to get more comfortable with your data then it's important to start filling in any data gaps. Ultimately, your north star should be looking to build as close to a 360-degree view of your customer's journey as possible.

An interesting nugget, in case you missed it, Acxiom and their Real ID product are beginning to build steam. Recently IPG announced their identity resolution product which is powered by Acxiocm, which just goes to show you that ID resolution and 360-degree consumer view are possible.

Understand Alternative Targeting Opportunities

While marketers will agree that our targeting landscape is changing, but is it? Like anything an evolution will happen, and more tools will eventually become available. As we wait for these, there are three targeting methods that you can turn to now. They are contextual targeting, cohort-based targeting, and lookalike audiences.

1. Contextual targeting — delivering relevant ads based on content. Instead of tracking individual users, focus on delivering ads that align with the content they are consuming. Although not new, contextual targeting has regained popularity and is back with a vengeance, like the QR code! By analyzing the content users engage with, you can serve ads that resonate with the topic, theme, or interest, increasing the chances of capturing their attention.
2. Cohort-based targeting — the privacy-friendly way to reach your audience. Group users with similar attributes into anonymized cohorts and deliver personalized ads without tracking individuals. This method allows you to target users based on shared characteristics such as location, age, and interests. By understanding the commonalities among users within a cohort, you can tailor your ads to effectively engage this specific audience segment. Here is a great piece from Adroll on cohort-based targeting.
3. Lookalike audiences — expand reach based on user similarities. Build lookalike audiences with similar attributes to your engaged audience. Utilize social pixels or first-party data lists to create segments for potential customers who share preferences and behaviours with your existing audience. This approach allows you to extend your reach to new users who exhibit similar characteristics to those who have already shown interest in your brand, increasing the likelihood of attracting new customers.

These alternative targeting opportunities offer several benefits. Contextual targeting ensures that your ads are relevant to the content users are consuming, increasing the chances of engagement. Cohort-based targeting respects user privacy while still allowing you to deliver personalized ads to specific audience segments. Lookalike audiences help you expand your reach by targeting users who exhibit similar attributes to your existing engaged audience.

For example, a travel company can leverage cohort-based targeting to reach users in specific locations with personalized ads tailored to their travel preferences. By analyzing the content users consume, a fashion brand can use contextual targeting to deliver ads that align with the latest fashion trends or specific fashion interests. By creating lookalike audiences based on its existing customer base, an e-commerce company can expand its reach to potential customers with similar preferences and behaviours.

Invest and Build Strong SEO Practices

If you didn't prioritize your SEO (Search Engine Optimization) before, you should be doing so now. The deprecation of third-party cookies has significantly elevated the importance of SEO, because of the value search platforms are placing on content. Neil Patel suggests optimizing time to value, enhancing site navigation, building tools, and diversifying your strategy (post link). So where should you start? Here are some suggestions:

1. Conduct an SEO Audit: Start by conducting an audit of your website's current SEO practices. Identify areas for improvement in terms of content relevance, site structure, and user experience. This will help you understand where to focus your efforts and make necessary optimizations.
2. Optimize Content for Targeting: With the deprecation of third-party cookies, it's important to enhance your content relevance for effective targeting. Conduct keyword research and optimize your website's content to align with the interests and needs of your target audience. This will help improve organic search visibility and attract relevant traffic.
3. Prioritize User Experience: User experience is crucial for SEO success. Ensure that your website is user-friendly, easy to navigate, and provides valuable content. Optimize page load times, improve mobile responsiveness, and make sure your website is accessible to all users. This will not only improve your search engine rankings but also enhance user satisfaction.
4. Embrace First-Party Data: As the focus shifts towards first-party data and consent-driven approaches, invest in strategies to collect and leverage your customer data. Implement methods to obtain user consent and use this data to personalize user experiences and target your audience effectively.
5. Build Brand Authority: Invest in creating high-quality, valuable content that establishes your brand as an authoritative source in your industry. Publish informative blog posts, whitepapers, case studies, and other relevant content that showcases your expertise. This will not only attract organic traffic but also contribute to building brand authority and credibility.
6. Stay Updated with SEO Best Practices: SEO is an ever-evolving field, so it's important to stay updated with the latest trends and best practices. Follow reputable SEO blogs, attend industry conferences, and engage with SEO communities to stay informed about algorithm updates, new techniques, and strategies.

By investing in strong SEO practices, you can enhance your website's visibility, improve user experience, and adapt to the changing landscape of online advertising and data privacy. There is also a great article that Brian Dean wrote on building an SEO strategy in 2024 which I would strongly encourage you to take a look at here.

Social Listening

In the absence of third-party cookies, social listening becomes an even more valuable method to address data gaps and gain insights into customer sentiments and interests. By actively monitoring social media channels, you can tap into ongoing discussions and extract valuable information about your brand.

Social listening tools, such as Sprinklr , Hootsuite , Brandwatch and others, empower advertisers to manage audiences by identifying and suppressing those with negative sentiments towards your brand.

By leveraging social listening in a cookie-less environment, you can:

1. Extract Insights: Monitor social media conversations to gain insights into customer perceptions, preferences, and needs. This information can help you understand your audience better and make data-driven decisions.
2. Personalize Interactions: Utilize social listening data to personalize your interactions with customers. Tailor your responses and communication based on their specific interests, concerns, and preferences. This personalized approach can help build stronger connections with customers and enhance their overall experience.
3. Monitor Competitor Conversations: Social listening allows you to keep tabs on conversations and sentiments related to your competitors. By monitoring what customers are saying about your competitors, you can identify areas where you can differentiate yourself or address gaps in the market. This can help you stay competitive and seize opportunities.

In a world without third-party cookies, social listening becomes a valuable tool for understanding your audience, personalizing interactions, and staying competitive.

Closing thoughts

Marketers and organizations alike must embrace data privacy and transparency as consumers actively seek it. By sharing a comprehensive and easily accessible privacy and cookie policy, providing consent management options, offering clear opt-out choices, and keeping users informed about changes in data collection practices, marketers can meet consumer expectations and maintain trust.

I also believe that the transition to a cookie-less environment presents an opportunity for marketers to tap into their creative roots. It challenges us to think outside the traditional "box" and prioritize the consumer in our decision-making. This shift can lead to a more consumer-centric approach, aligning with the principles that should have been at the core of our marketing strategies all along.

References and Literature:

Consumers want more transparency on how businesses handle their data, new Cisco survey shows - Newswire.ca

Crisis To Clarity: Promise Of First-Party Data In A Post-Cookie World - Forbes.com

Customer Data: Designing for Transparency and Trust - Harvard Business Review

Customer Data Privacy Practices - Think with Google

Google’s turning off third-party cookies entirely in the second half of 2024 - The Verge

Top 5 Customer Data And AdTech Considerations For Marketers Heading Into 2023 - Forbes.com

Top Performing Brands Prioritize First-Party Data Acquisition and Advertising Agility - Gartner

The future of third-party cookies, discussing the deprecation - Epsilon