How Should You Alter Your Marketing Strategy in A Cookie-Less World
Four things Young Should Know About The Death of A Cookie
With cookies fading into oblivion marketing is imminently headed for a major makeover in the immediate future. With Mozilla letting go cookies from Firefox in 2019, followed by Apple decision of banning all third-party cookies from Safari in March 2020, and Google’s announcement of its plan to remove third-party cookies from Chrome browser by 2022, third party cookies will soon be extinct.
Why is this such a big deal for digital marketing?
Cookies have been the most important tool to create user-personas and helped in identifying target audiences since the advent of digital marketing along with helping marketers analyze the impact of digital advertising. With cookies gone, marketers will be left clueless about how to identify and approach their customers.
Why are cookies being phased out?
Privacy regulations such as the General Data Protection Regulation (GDPR), ePrivacy Directive, and the more recent California Consumer Privacy Act, effective from January 1, 2020, mean consumer privacy will be given priority over marketing needs. Consumers too, prefer buying from companies who protect their personal information instead of sharing it with others for advertisement purposes. Apple set a great example towards compliance with its announcement about giving iOS 14 users control over data sharing on an app by app basis.
How will phasing out cookies impact marketing?
With the phasing out of third-party cookies marketers will have trouble in ‘identifying’ their consumer or knowing their traits and in analyzing their online behaviour or spending patterns etc. in the absence of cookies. Since the marketers may no longer be able to target their audiences with relevant and personalized tech-ads confusion will ensue as one won’t be able to know their ROI vis-à-vis their digital campaigns.
What is the way forward? | Options for marketers in a cookie-less world?
· Use first-party and second-party cookies: Third party cookies were widely used for retargeting, cross-site tracking, and ad-serving and are being let go as they were posing a threat to user privacy and posed a security risk as well. To continue driving engaging, meaningful, and targeted marketing campaigns first-party and second party cookie data can be used along with cookie-less third party data. Brands now need to deploy multiple data sources and AI should be involved here. (Ask us about our cookie-less world solution here.
· Data accuracy: With third party cookies fast moving towards becoming a thing of the past, gathering the apt data for the ‘right identity’ or creating the right ‘user-persona’ is the need of the hour. To do so, one needs to know about the customer purchases across platforms – online and offline platforms. This is challenging as a lot of confusion in identifying a customer can be caused due to the use of the same digital device i.e. laptop, mobiles etc by multiple people.
· Knowing that the consumer is continuously evolving: Consumer personas keep on changing, and hence ‘identity’ needs to be updated every now and then. Identity management solutions implemented via AI and Machine Learning can be of immense help here. For example, phone numbers, postal addresses, as well as email addresses of consumers keep changing. Brands need to be abreast with these changes. Once the process to identify the customer correctly is set in place, brands can connect with their consumers in a better manner and can meet customer expectations efficiently.
· Aim for unification: While a brand may be chasing sales and growth, having the right data/‘identity’, delivering a great customer experience, should all be an equal part of the process in order to target the consumer in the right manner. Predictive modelling which takes various data sources and applies ML to discover your potential customer is a great tool for marketers to have in a cookie-less world. Kellogg’s and Coca-Cola among others are also already using this unified approach.
We at Infinite Analytics believe that the ethical usage of data is the only way to operate in this ever evolving world. Our ability to map location intel with other data gives us insights to consumer behavior, an important piece in the marketing matrix. For example to identify where a coffee chain would want to open the next store in Mumbai, we layered the map of the city + our prosperity index + Colleges + Office Hubs + Number of people going to Colleges and Office Hubs + Number of people sitting in existing coffee shops + Number of people taking away coffee and got our answer to where to open the new coffee shop.
If you would like to know which location our tool suggested, drop in a line at [email protected]