Marketers and third-party cookies — can you name a better combo?
A few years ago, you really couldn’t. But with Google phasing out third-party cookies in 2024, marketers are busy Exploring new strategies for collecting user data.
While 2024 may seem far down the road, more than half of marketers say their company is already exploring alternative targeting solutions.
And it’s no surprise, as 85% of marketers say their marketing activities rely on third-party cookies to some degree, and 77% say Google’s phasing out of third-party cookies will make marketing easier for them. will make it more difficult.
So let’s take a look at what solutions marketers are turning to as a replacement for third-party cookies and the unexpected impact it’s having on marketing budgets.
What third-party targeting options are marketers exploring
Of the 54% of marketers who say their company is exploring alternative targeting solutions, more than half are considering using social media for targeted ads as a replacement for third-party cookies. Collecting first-party data from your customers is another top strategy, as is the Google Topics API.
Let’s take a quick look at each of these.
Using social media for targeted ads
Social media offers advanced targeting tools to get your ads in front of your target audience.
Collecting first-party data from your customers
First-party data is collected directly from your customers, but how exactly do you get to it and what do you do once you have it?
First-party data can be collected from many sources – like your website, surveys, email, SMS, CRM hubspoteven more.
Once you have first-party data, use it to gain high-quality insights about your audience and create a personalized experience for them.
Considering more than half of marketers Don’t know basic demographic information on your target audienceAmong other important data points, going to a first-party perspective may end up working to your advantage.
Google Topics API (Privacy Sandbox)
Although not yet released to the public, more than half of marketers looking for alternatives to third-party cookies are checking out the Google Topics API. In short, it will categorize the sites people visit into different topics. Those categories are then used to show relevant ads.
For example, someone who frequently visits sports-related websites may be shown an ad for a live sports streaming service, without the specific site information they visited being shared with advertisers. Users can also control which topics they engage with.
A Universal ID is a unique user ID that allows companies to identify users across different websites and devices. It functions similarly to third-party cookies with a few key advantages:
- Universal ID provides cross-device tracking, creating a more seamless experience and reducing data loss
- Universal ID eliminates duplicate information, which means more accurate sample sizes
- Universal ID solutions can be built with first-party data, offering targeting while respecting privacy
Despite more than 1 in 3 marketers looking for a universal ID looking for alternatives to third-party cookies, it’s new, growing, and definitely worth keeping an eye on.
All of the solutions we’ve mentioned so far still rely on user data and targeting. Contextual advertising is all about placing ads in the right places. For example, placing an ad for a pair of headphones on a blog dedicated to music production.
In other words, ads are displayed based on the content being shown, not by tracking the user’s past behavior.
Marketing budgets are increasing to accommodate data privacy changes
While the disappearance of third-party cookies means that your marketing strategy will have to change, it is also an opportunity to develop more precise targeting methods that respect consumer privacy.
If that’s not enough motivation, marketing budgets are on the rise due to data privacy changes. Nearly half (48%) of marketers say their budget has changed this year to compensate for changes to data privacy, with 71% of them reporting an increase in their marketing budget.
This means you might find some extra budget to explore some of these options and see what works best for your marketing strategy.
And it can actually improve your data strategy – over 30% of marketers in our survey say data privacy changes have had a positive impact on their overall marketing strategy.
We did some additional research and found that increasing budgets is one of three ways marketers are benefiting from the data privacy change – follow the links to learn how marketers are seeing the positive impact.
What’s next for data privacy change
A major challenge in dealing with data privacy changes is that they are actively evolving.
We know that regulations are getting tighter and consumers are becoming more concerned about how their personal information is used.
But how exactly the changes to data privacy will affect marketers and which solutions will become the industry standard is still up in the air.
The best thing you can do is prepare for a privacy-first future by exploring new targeting solutions and implementing them into your future planning.
This is a big change, but keep in mind that all marketers face the same challenge. some will be more prepared than others — and marketers Most ready for customization Best results will be seen when the time comes.