Google is set to phase out third-party cookies in its Chrome web browser starting from June, with the goal of completely removing them by the end of the year. This move will require companies to substitute third-party data with their own data. In a cookie-less world, three technologies will be crucial: marketing automation, artificial intelligence, and data governance systems.
For many years, controversial cookies have enabled the gathering of information and data about consumers and users to create their profile and meet their individual needs for commercial purposes and online advertising. Users have had the option to accept or reject these cookies. However, it appears that this practice is coming to an end.
While the exact date is yet to be determined, Google will start phasing out third-party cookies from June 2023, with the aim of completely eliminating them by the end of the year. The successor to cookies may be Topics, a personalized advertising system in which the browser locally determines the topics that are of most interest to the user based on their browsing history.
Eduardo Esparza, VP General Manager for Spain and Brazil at Tenerity, a specialist in profitable loyalty, believes that we are currently in a turbulent time regarding what the next tool will be for Internet giants to capture and sell data.
He states that online advertising is changing and evolving rapidly and continuously. However, companies must now prioritize measures that leave little room for error and respect user privacy. In this regard, he suggests that loyalty programs are an effective tool for capturing data and managing it ethically.
According to the latest study by this company, businesses are allocating up to 40% of their budget to the technological field in order to gain better understanding of their customers, foster stronger relationships with them, increase satisfaction, and improve various key performance indicators.
“Investing in technological systems that help create value through data, personalization, and customer experience will be crucial for adapting to the post-cookie era,” the Tenerity company states.
Tenerity’s experts suggest that companies should implement the following systems throughout 2023:
- Based on data from Salesforce, 60% of users are willing to share personal information in exchange for more personalized advertisements, recommendations, and a better overall experience. Therefore, it is expected that establishing First Party Data platforms, which collect data with the user’s prior consent, will be crucial. This will help companies gather data and have traceability without relying on third parties.
- The combination of marketing automation technologies with artificial intelligence and machine learning will be crucial following the disappearance of cookies, as it enables understanding customers and building strong relationships with them. Such tools enable us to tailor our approach to the needs of users, thereby increasing their satisfaction. For companies, this translates to a significant improvement in results.
- Data governance systems are crucial for companies to ensure appropriate use of data. Users are increasingly aware of the importance of protecting their privacy and data transfers. In fact, 46% of users have accessed their Google Account at some point to adjust the Privacy Review, indicating that this is a matter of concern. Data governance systems help to enhance the quality and comprehensiveness of data, reduce management costs, facilitate access to this information for all departments within the company, and enable proper handling of the data.
Eduardo Esparza say:
“The trend for companies is to adopt systems that enable them to protect data for ethical reasons, rather than just regulatory compliance, and this is true. Companies that fail to adopt technological solutions will miss the chance to capture consumers’ attention. This will result in a loss of their competitive position, as compared to their rivals who use data collection and management systems effectively, enabling them to discover audiences that have not yet been explored. By anticipating their needs and preferences, they can uncover new market opportunities.”