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This week Google announced it will keep third-party cookies running in Chrome. In its announcement, Google said it will “introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing” instead of deprecating third-party cookies. Essentially, they’re making it easier for users to opt out instead of tossing cookies out the window.
Does this mean you can wipe the sweat off your brow and return to third-party data business as usual? Not so much. According to Google’s research, 92% of leading marketers believe using first-party data to continuously build an understanding of what people want is critical to growth. First-party data must remain central to your marketing optimization strategy to maximise revenue growth and prepare for the future. Here’s why.
It’s unlikely that this is the final word on third-party cookies in Chrome. When the change of plans was announced, Google said, “...cookies will remain in Chrome while alternatives are underway,” so this is far from the end of the story.
It appears Google decided to keep the third-party cookie party going to balance the needs of marketers and user choice with appeasing regulators who saw the proposed replacements as a consolidation of power within Google’s ad empire.
While the most recent decision solves the third-party cookie problem for now, that could change at any time. Regulations of third-party data and cross-platform tracking could get tougher. Google could come up with another alternative tomorrow. This is not to mention that Chrome is the only browser that does not block third-party cookies by default. The only certain thing is that the end of third-party tracking is nigh, so it’s best to be prepared.
The best thing about first-party data is that you already have it, so there’s no reason not to use it. First-party data contains rich insights about your prospects and customers that you can use to optimise the entire buying experience and drive more revenue.
It also provides a competitive advantage since you own and maintain exclusive access to it. While third-party data can be accessed by anyone, the first-party data you capture from customer interactions is unique to your business and extremely valuable for audience targeting, ad optimization, crafting messaging, and more.
Companies often have large amounts of untapped first-party data at their disposal, including subscription data, CRM data, purchase data, app data, and data from consumer phone calls to their call centres and locations.
The “untapped” part of the equation is the problem. While you have and are constantly generating large amounts of first-party customer data, you must have the right technology to gather, analyse, and take action on it. Luckily, the latest AI-powered martech makes it easier to do this and stream the data to your ad platforms, CRMs, and other parts of your martech stack that can turn first-party data into actionable insights and real-time optimizations.
The shift to first-party data is a boon for marketers because it more accurately reflects your most valuable customers.
First-party customer data is more accurate because it is collected directly from your user interactions, providing specific, granular, and real-time insights that are highly relevant to your business's customer base. In contrast, third-party consumer data relies on aggregation and inferences, so it’s less precise and more prone to inaccuracies.
First-party data is gathered directly from interactions like phone calls, website visits, app usage, and customer feedback. Since the data is specific to customers who engage with your brand, it’s highly relevant and can be tailored to match your ideal customer’s behaviour and preferences. This allows you to target the highest-intent audiences and most valuable customers possible.
This also makes it the best source for determining customer intent. Phone calls, for example, are an amazing source of intent data because your customers tell you what they want and why they called in their own words. This data can be used for ultra-precise ad optimization and audience targeting because it perfectly reflects your customer’s needs.
On the other hand, third-party data is aggregated from many sources and includes inferred information about consumers who have not directly interacted with your business. This data may be gathered from audiences that don’t match your customer profile and have low or no intent to buy what you’re selling, so you may be wasting valuable ad budget targeting unqualified leads based on third-party data sources.
First-party data is more privacy-friendly because it involves direct interactions between businesses and users, fostering transparency and trust. The direct collection and control over the data facilitate compliance with privacy regulations like GDPR and CCPA by ensuring explicit user consent, data accuracy, and ease in managing user rights and requests. In contrast, third-party data, with its indirect collection methods and potential for multiple exchanges, poses greater privacy risks and complicates regulatory compliance.
When will the third-party cookie apocalypse finally arrive? It’s anyone’s guess, but it’s likely to be soon. The earlier you implement a first-party data-driven approach to your marketing, the better prepared you’ll be when that day inevitably arrives.
Want to learn more about how marketers use first-party data to improve ad targeting and drive more revenue? Check out these resources:
