The term “seismic shift” is used a lot these days, but there’s no other way to describe what is happening in the digital marketing world with the phasing out of third-party cookies by major browsers like Chrome, Firefox, and Safari, which will take full effect in 2024.
Site owners are being advised to audit their third-party cookie reliance and assess how they will be impacted. This development, which aligns with global privacy regulations such as GDPR and CCPA, is propelling first-party data into the limelight, presenting marketers with both challenges and opportunities.
A world without third-party cookies
As third-party cookies go the way of the dodo, first-party data will become increasingly important. Directly collected from your customers, this type of data is pivotal in building robust marketing strategies, especially since, as the Digital Marketing Institute explains, it’s more reliable, costs less to acquire, targets the right customers, offers transparency and ensures compliance.
So, if a user fills in a form on your website, that's first-party data. Similarly, transactional data such as purchase history or product usage is also considered first-party data. It can be acquired through multiple channels, such as website analytics tools, customer registration forms, online surveys, and customer relationship management (CRM) systems. Interactions on social media platforms and email responses can also provide valuable first-party data.
Although it necessitates a digital marketing strategy rethink in terms of ad targeting, buying and optimisation, by focusing on leveraging these sources, businesses can gather insightful and reliable customer data (that which customers are willing to provide) to understand their preferences, habits and behaviours.
Strategies for harnessing first-party data
Because first-party data tends to be more accurate, it has the potential to yield better results when incorporated into a marketing strategy. By analysing purchase histories and product usage data, businesses can identify patterns and predict future behaviour, enabling them to offer timely and relevant incentives to keep customers engaged and loyal.
Writing for Gartner, Jackie Wiles advises marketers preparing for the cookie-less future to first establish a foundation for first-party data management. That means ensuring that it’s secure, accessible and effectively utilised by the relevant stakeholders.
The next step is to find ways to incentivise customers to share their data, perhaps through downloadable content, discount or reward schemes and even competitions. In short, “getting consumers to volunteer information about themselves requires a compelling value proposition.”
Embrace the cookie-less future
This reliable, cost-effective and compliant data source, acquired directly from customers, offers unparalleled insights into customer preferences and behaviours. By effectively managing and leveraging first-party data, businesses can not only predict future behaviour but also offer relevant incentives, ultimately driving customer engagement and loyalty. As we move towards a more privacy-focused world, the effective utilisation of first-party data will become an increasingly vital component of successful marketing strategies.
Businesses need to stay focused on what they do best, so this kind of proactive and innovative marketing necessitates the services of a specialist digital marketing team. Partnering with League Digital would be the smart choice for your business – come and see why.
