5 Ways Third-Party Cookie Deprecation Will Impact Marketers
For years, the cookie has been “crumbling” and the cookieless future has been a hot topic amongst marketers. And now we are seeing this become our reality as Google - the last of the big browsers to hold out - has begun to phase out its support of third-party cookies in Chrome.
With so much buzz, it can be hard for marketers to distill down the key things that they need to know. At Chicory, we have been preparing for this and believe that although this shift will come with some challenges, overall, this will be an opportunity for our industry to reset and reinstate a new level of creativity in marketing.
Below are the five key things that marketers should be aware of as third-party cookie deprecation advances.
Watch Out for Shifts in Your Budget and Resource Planning
Concerns over the viability of digital advertising will result in strategic budget shifts and the adoption of new advertising tactics. The time and resources required to test alternatives may lead to delayed planning, budget cuts, or investment in initiatives other than working media dollars.
You May Experience an Increase in Data Efficacy Concerns
Many retailers rely on cookie-based probabilistic data to account for in-store cash transactions, raising data efficacy concerns. Retailers most at risk are those that do not have robust loyalty card programs or those that have a large percentage of cash transactions.
Retailers Will Most Likely See Some E-commerce Data Limitations
High online traffic does not equate to high-quality authenticated traffic. Retailers will be limited in their ability to build out their first-party data supplies if they are unable to authenticate users. Additionally, those who have not developed robust contextual offerings may find themselves especially vulnerable to these limitations.
You Will See Heightened Challenges on the Open Web Due to Low Traffic Authentication
Off-site retail media will be challenged by low publisher authentication, limiting the usability of first-party data for deterministic targeting. Advertisers will need to rely more on probabilistic targeting which raises additional data efficacy concerns, especially at premium CPMs and large spend commitments.
There Will Be New Measurement Challenges Across Sources
Consistent measurement will be difficult without third-party cookies to stitch together data across websites and walled gardens. Without a “single source of truth,” marketers will need to figure out their own best measurement practices. This - not targeting - could well prove to be the biggest impact to marketers given the move away from third-party cookies.
Although these challenges will be hurdles for marketers to overcome, there will also be benefits to come with this shift. Marketers will need to focus on creating a user experience that encourages authentication to be able to build out their first-party data. Not relying on third-party cookies will give marketers the ability to get more creative again and rethink how they are engaging with their customers in a valuable way.
For more on third-party cookie deprecation, check our hub.