Google's unexpected u-turn on the phasing out of third-party cookies in Chrome signals a major shift in the digital advertising landscape. While the legal requirements for using these cookies has not changed, this move emphasizes user choice and consent, marking a potentially positive development for the advertising industry. However, we as an industry shouldn't become complacent. We saw with the iOS 14 updates in 2020 that over 60% of iOS users opted out of tracking when given the option. Third-party cookies have been a fundamental part of the web and user tracking for almost thirty years, helping businesses and marketers gain insights on user behaviour. They are?small pieces of text sent to your browser by a website you visit. They help that website remember information about your visit, making it easier to visit the site again and making the site more useful to you. But the future of cookies is clearly up for question in a world where people are becoming more and more concerned about how companies are using their data. User privacy is no longer just an ethical requirement but a legal one as well. Up until now, cookies have been a massive source of data and insights, allowing businesses to track users browsing and purchasing behaviours throughout their owned digital properties by using META/TikTok Pixel integrations as well as Google Ads and programmatic tracking techniques.?
Google had initially planned the phase-out of third-party cookies on Chrome for 2022, this has been postponed four times with the new deadline of early 2025. Google has already disabled third-party cookies for one per cent of Chrome users with the intent of analysing them as a test group.
In a world without third party cookies, what is the marketing industry doing to protect consumer rights while still being able to effectively judge the effectiveness of their campaigns? Despite these multiple extensions of the deadline for cookie phase-out, businesses, agencies and media owners need to focus on breaking the status quo and focus on partnering closely to ensure that consent is obtained, regulations are complied with and making sure that more robust methods of measuring campaign performance are implemented and tested before the phase-out of third? party cookies. Such methods might include the implementation of server-side web analytics, conversion APIs across social platforms and enhanced conversions and server-side tagging for Google campaigns. The Mixed Marketing Modelling (MMM) approach has also emerged as a popular statistical approach for businesses preparing for the impending phase-out of third-party cookies. Evolving from traditional marketing analytics, MMM integrates various data sources to assess the effectiveness of marketing efforts across multiple channels and touchpoints without relying on third-party cookies.
Instead of tracking individual user data, MMM looks at different types of data collected from various sources to get a big-picture view of marketing performance, such as first-party data, such as website analytics, CRM data, and sales and marketing data.
Here’s how it works in simple terms:
- First-Party Data: This includes information that businesses collect directly from their customers. Examples are website analytics, CRM (customer relationship management) data, sales data, and data from marketing campaigns.
- Combining Data Sources: MMM combines first-party data with other data sources to analyse how different marketing channels (like TV, online ads, social media, etc.) are performing. This helps businesses understand which channels are most effective and how they contribute to sales and other goals.
- Statistical Analysis: Using statistical methods such as multiple linear regression, MMM looks at patterns and trends in the data. It can show how different marketing efforts work together and how external factors (like seasonality or economic conditions) impact marketing performance.
- Holistic Insights: MMM provides a comprehensive view of marketing effectiveness. It helps businesses see the big picture and make informed decisions about where to invest their marketing budget.
By using MMM, marketers can get valuable insights into their campaigns without depending on third-party cookies. This method allows them to measure the return on investment (ROI) and make data-driven decisions.
All of these changes require that the wider marketing industry puts more focus on building trust with its consumers and clearly demonstrating that their rights and their data are being protected. We must emphasise the need for clear consent mechanisms that allow users to decide how much of their data they are willing to share and what services their data can be utilised for. Examples of these include:
- Keep Consent Process Simple and Clear: Make sure the "Allow" or "Reject" buttons for sharing data are super easy to understand. Additional sharing options can be highlighted under an additional option called something like "Advanced Setting"
- Give Users a Reason to Engage: Offer perks or rewards for folks who agree to share their information. Think discounts, coupon codes, or sneak peeks at exclusive content.
- Spell Out the Perks of Sharing: Let users know exactly what's in it for them if they agree to sharing their data. Tell them how it will make their experience better.
- Make It Effortless to Change Their Minds: Keep the exit door wide open! Make sure users can easily switch off data sharing whenever they want. This includes removing any of their existing data from your data base.?
After all, if we educate the consumer around their rights and data collection practices with complete transparency, this will build trust between businesses, brand owners and their customers. By emphasising the user benefits of data collection such as personalised experiences, improved services and targeted recommendations they are more likely to view data sharing as a mutually beneficial exchange rather than a one-sided transaction and will be more likely to consent to sharing third party cookie data.
Rowan Struwig
Digital Account Director
