Third-Party Cookies: An Unexpected Ending or New Beginning?
The digital world is undergoing an unprecedented transformation: the end of the third-party cookies. Users have grown more conscious of how businesses are tracking their data, and they have begun to fight back against this invasive online experience.
Google is planning to go cookie-free by January 2022, whereas other tech giants like Facebook and Apple are making similar attempts to change how their users are monitored online.
Many digital marketers and businesses risk losing revenue of 10 billion USD if they don’t discover a better way to effectively handle their users’ data. Let’s delve further into this to discover the post-cookie world.
What are Third-Party Cookies?
Third-party cookies are tracking codes or small files placed on the browsers by third-party platforms or the websites the users visit. They gather a plethora of data, including location, age, and preferences of the users and their browsing habits. They also track target customers’ most visited websites and how much time they spend on each.
AdTech platforms or publishers have long used third-parties cookies to monitor their website visitors, enhance their user experience, and gather data to post ads to the relevant audience at the appropriate time.
Why Are Browsers Going Cookie-Less?
A study by Deloitte shows that the emotional traits that customers believe most match with their preferred brands are honesty (77%), integrity (79%), and trustworthiness (83%).
The growing suspicion of third-party cookie users is one of the primary reasons for the termination of third-party cookies, as consumers cannot prevent websites from accessing their data.
Despite having the greatest market share of about 64%, Chrome is not the first browser to disable third-party cookies. The second and third most popular browsers, Safari and Firefox, have already discontinued tracking their users using third-party cookies.
Which Cookies Are Allowed?
It is important to note that all types of cookies will not be disabled in early 2022. First-party cookies generated by advertisers which are not shared with any third party will remain in place.
First-party cookies collect data relevant to users, such as saved orders in the carts, purchase and search history, etc. Furthermore, these cookies are the least likely to be blocked by users. Only 5% of users block first-party cookies, implying that users are willing to accept these cookies for a better experience.
Who will take over for Cookies?
Major tech companies have released several alternatives. Subscription billing management is one of the most popular alternatives which enable you to boost customer interaction, improve revenue predictability, estimate client lifetime value, and manage inventory effectively in the following ways:
- Customized Data:
Subscription billing management can become the key source for collecting high-value data from the first party via registration, payment, and contextual and behavioral data. An effective billing system will also enable businesses to collect legitimate data from credible sources like surveys, registration walls, etc.
- Extensive Customer Analysis:
Publishers can quickly develop and explore every part of their offering and pricing using contemporary subscription management software, making real-time adjustments. It will help them to promote acquisition, improve revenue, and decrease churn.
- Multiple Data Extraction Strategies:
A modern subscription billing platform can facilitate the data collection process by preserving and standardizing a wide range of client data elements, including bespoke data, to influence strategy, marketing, product proposals, and ad targeting.
- Flexible Subscription Proposition:
It is essential to have a subscription billing system built on an open data foundation that allows different data extraction ways to third-party systems. Its real worth emerges when information is shared throughout a larger first-party data network of linked solutions.
In a Nutshell
Targeted marketing will need a significant adjustment in approach for many businesses post January 2022. Brands that prioritize understanding their consumers, developing trust, and transparently gathering data will be best suited for success.
The most important thing is to assess the implications and devise a strategy that will allow you to retain digital advertising efficacy beyond 2021.