Over the past few years, advertisers have been hearing about Google’s apparent abandonment of third-party cookies. This is a big deal and one that most people in the advertising industry are watching closely because of the impact it will have on their ability to target and track consumers in their online behavior. The inability to easily track consumer search and purchase data has had a huge revenue impact on advertisers, but it has impacted other businesses as well.
However, business owners often do not understand how these changes will affect their ability to advertise their products and reach new consumers. Recently, Google announced that it would delay the changes until 2024, giving business owners and advertising leaders a chance to keep up. Here’s what you should know about how this move will affect your business and how you can prepare for it.
First, how did we get here?
Privacy concerns have prompted consumers and industry gatekeepers to question our data tracking systems online. Consumers are increasingly aware of how their data is being monetized, and the exploitation of covert data is a major consumer red flag. In fact, 80% of consumers say they would willingly abandon a brand if their data was used without their knowledge.
At the same time, the need for personalization is on the rise, and consumers are starting to look to businesses for omnichannel solutions that make their purchases easy and save time. Both personalization and omnichannel experiences require the use of data to perform well.
These two consumer sentiments collide in the current digital advertising paradigm, in which private data is often used for gain outside of consumer interests. Recent actions by legislators and tech giants have attempted to reconcile these interests, and the future of digital advertising hangs in the balance. To give your business a bright future, take smart steps to prepare for either decision.
Partner with publishers who are prescient
Notably, stay away from third parties Cookies may only increase the stronghold of advertising giants like Meta and Google, and weaken access to reputable data sources for other publishers, the advertising ecosystem.
Fortunately, many publishers already have an understanding of privacy-compliant identity solutions. Partnering with publishers who have access to such data for programmatic advertising can be an important solution for business owners moving forward. Additionally, we can ask publishers how they accommodate the end of third-party cookies.
Learn about new identity solutions
As Google is about to drop cookies, the digital identity industry is Flourish. The global market for this industry is expected to grow to $49.5 billion by 2026. Why? New privacy-compliant identity solutions will set the stage for the future of digital advertising.
Some promising solutions include contextual targeting, which uses natural language processing to match content to consumers without intrusive privacy practices and addressability, and aims to use less private Data sources to identify and anonymize consumers.
Own your data
At the end of the day, advertisers who own their own data will be better off to meet the challenges of the new digital advertising ecosystem. Now is the time to optimize your data capture, get your customers on-board and develop a marketing strategy that will continue to deliver value to your consumers.
Additionally, honing your first-part data strategy presents an opportunity for business owners who take their task seriously. Building deeper, more transparent, and value-driven relationships with your audience and their data can take your advertising efforts to unprecedented heights.
While Google is leaning toward decisions that will dramatically change advertising and marketing, change is the only constant in this space. Businesses were successful before third-party cookies, and many businesses will continue to thrive without third-party cookies. To stay ahead of change, business owners must stay informed and act ready.
