When the Cookies Crumble, Marketers Scramble

Data privacy has justifiably emerged as a flashpoint topic in recent years. When we perform a search or purchase a product online, thousands of pieces of information are collected about us and a digital profile is created and then is often shared with data brokers. The underlying issue is that consumers don’t know the extent of the data that is collected and to whom it’s sold.

Companies like Google and Apple are beginning to look for ways to change how data is collected and distributed as they adjust their data privacy policies to reflect consumer concerns and new regulatory frameworks. But what exactly does this mean for businesses and their marketing teams who rely on this data to reach their ideal customers?

Big Tech Is Making Data Less Accessible

The push for data privacy is by no means a new development. New laws like California’s Consumer Privacy Act appeared in 2018 and gave users the right to know where their data is going and even opt out of it if they wish to.

Now, some of Big Tech’s giants are giving users more control over their data. Apple’s iOS 14.5.1 update, for example, requires apps to ask users for their permission on whether or not their location and activity can be tracked across apps and websites. The controversial update dealt major blows to advertisers and reignited a notable feud with tech behemoth Facebook. Facebook responded in kind, claiming that billions of people are able to access email, social networks and news because they are paid for by ads that leverage user data. So far, the update has not gone in Facebook’s favor with a minuscule opt-in rate of about 5 percent of users based in the United States.

Apple’s upcoming iOS 15 update will add another layer of privacy for users, but also provide another headache to marketers.

Data privacy has justifiably emerged as a flashpoint topic in recent years. When we perform a search or purchase a product online, thousands of pieces of information are collected about us and a digital profile is created and then is often shared with data brokers. The underlying issue is that consumers don’t know the extent of the data that is collected and to whom it’s sold.

Companies like Google and Apple are beginning to look for ways to change how data is collected and distributed as they adjust their data privacy policies to reflect consumer concerns and new regulatory frameworks. But what exactly does this mean for businesses and their marketing teams who rely on this data to reach their ideal customers?

Big Tech Is Making Data Less Accessible

The push for data privacy is by no means a new development. New laws like California’s Consumer Privacy Act appeared in 2018 and gave users the right to know where their data is going and even opt out of it if they wish to.

Now, some of Big Tech’s giants are giving users more control over their data. Apple’s iOS 14.5.1 update, for example, requires apps to ask users for their permission on whether or not their location and activity can be tracked across apps and websites. The controversial update dealt major blows to advertisers and reignited a notable feud with tech behemoth Facebook. Facebook responded in kind, claiming that billions of people are able to access email, social networks and news because they are paid for by ads that leverage user data. So far, the update has not gone in Facebook’s favor with a minuscule opt-in rate of about 5 percent of users based in the United States.

Apple’s upcoming iOS 15 update will add another layer of privacy for users, but also provide another headache to marketers.

Well, it may not be after this release. Users will be able to hide their personal email and use a pseudo-one-time email that forwards to their inbox.

Deliverability nightmare.

Also, did we mention it prevents email services from tracking open rates and collecting the type of device used and location? Apple: Two. Rest of the world: Nil.

Meanwhile, Google is going to throw out third-party cookies altogether. Given that Google is the top search engine and many businesses rely on it for their marketing campaigns and organic traffic, this is a major win for consumers but a potentially devastating move for marketers.

This may seem like a fire drill for CMOs, but as any good marketer knows, marketing is never static. Data collection is changing, and the best line of defense is to have a plan and stay in the know.

To better understand why this is such an issue, we have to understand third-party cookies first. Third-party cookies are pieces of code added to your device to track activity and display relevant ads.

For marketers, they’re important as they help with cross-site tracking, retargeting visitors, and ad-serving (the collection of data to help advertisers better understand trends and ad performance). Of course, this isn’t the only type of cookie that advertisers rely on to effectively reach their target audiences. First-party cookies, for example, collect and return data to the owners of a website that a user visits.

So, with other cookies available, why is eradicating the third-party cookie so concerning to the marketing community? Approximately 80 percent of advertisers rely on third-party cookies to understand consumer behavior and develop relevant ad campaigns.

Without these third-party cookies, this substantial chunk of the marketing community will have to find new ways to research and reach their target audience. It’s only natural for these individuals to be concerned about the future of data.

But a better question to ask is, how do we navigate data privacy changes?

While marketers face more restrictions to receiving the customer information they need to sell effectively, their most imminent task will be finding the sweet spot in balancing these changes. Before abandoning their plans completely, marketers should look to the future for a timeline reality check and implement plans today that will help them prepare for the crackdown on data privacy to come.

The good news for marketers is that Google isn’t going to retire third-party cookies until 2023. Although they have recognized the need for change, they still understand that data collection is important and wish to produce new tracking systems that cater to the needs of consumers without eradicating the online advertising industry.

Unfortunately, this poses a major issue for current advertisers. No one is exactly sure what they’re going to do, and Google isn’t entirely sure either. Some sources like Wired state that Google will replace third-party cookies with the artificial intelligence system Federated Learning of Cohorts.

However, this proposed system has already attracted some concerned individuals who believe that discrimination may be an inherent attribute of the system that can be quite impactful.

Why do we mention this? Although Google seems set on FLoC now, there may be new developments that cause them to shift over to a new system.

So, what do you do if you’re a marketer currently trying to navigate these new changes? A few ways that you may be able to thrive in the face of data privacy laws and company changes include:

–      Conduct deep research into how other brands have thrived without having to turn to third-party cookies for their marketing news.

–      Stay on top of new developments released by Google to understand better which systems they may choose to implement and how you can best prepare for these changes.

–      Focus your strategy more on cookies that won’t be eliminated once third-party cookies have been removed.

–      Leverage other brands that align with your company’s goals and mission to attract new customers without the need for third-party cookies.

–      Understand that the eradication of third-party cookies does not mean that third-party data is leaving the scene.

–      Perform a little email housekeeping with your contacts now while your data is accurate.

As long as you’re willing to be flexible and research new ways to adjust as you look to the future, your organization should be able to navigate these recent changes.

The world that we live in relies heavily on tech for advertising purposes. But if there’s one thing that all businesses are used to by now, it’s the fact that tech is constantly changing and transforming. For many, the gradual shift to account for well-known data privacy issues is by no means surprising. Even so, many are concerned with what it means for the future.

If you approach third-party cookies the same way you would any change made to other technology you rely on to operate your business, adjusting to these new data privacy policies will be more than possible.