By Isabella Cruz (Junior Strategist) and Wender Oropeza (Web Developer & Technical Leader)
This article analyzes the impact of eliminating third-party cookies in digital marketing and explores alternatives that prioritize user privacy. We will examine the advantages and disadvantages of first-party data, contextual targeting, zero-party data, and second-party data as strategies for advertising segmentation.
The future landscape for advertisers and brands is also analyzed, emphasizing the importance of trust, transparency, and ethics in data collection to build lasting relationships with consumers. The article concludes with a call for innovation in privacy-respecting tracking tools and investment in the collection and analysis of proprietary data.
In the current context, digitalization, accelerated by the pandemic and increasing privacy demands, is shaping a new digital paradigm that brings substantial changes and opportunities in the marketing industry. This shift redefines how we connect with audiences and how we conceive and utilize information.
We will address some technical and ethical issues, as well as explore significant alternatives that arise from this new paradigm.
For the first half of 2024, the disappearance of third-party cookies has been announced. These small data files, used by websites to track users’ online behavior for marketing purposes, will become obsolete due to growing concerns about online privacy and new regulations. It is crucial that brands find effective alternative methods to gather data on user behavior.
Nevertheless, due to increasing concerns about online privacy and future regulations, it is crucial that brands find effective alternatives to gather data on user behavior. Here are some alternatives that could be considered:
Data-driven strategy as a response to challenges.
One promising option is first-party data, which is data collected directly from users’ websites. Although this approach is more ethical in terms of privacy, it raises questions about the accuracy and relevance of the collected information (McKinsey, 2023).
Another alternative is contextual targeting, based on displaying ads according to the content users are viewing at a specific moment. However, its effectiveness largely depends on the ability to interpret the user’s intention based solely on the context. This option is particularly valuable for gaining insights into user behavior, interests, intentions, preferences, and lifestyle.
Additionally, zero-party data, data that users intentionally or consciously share with brands, is a very valuable alternative. To successfully gather this information, something must be offered in return; that is, content marketing, personalization, and promotional strategies will be fundamental.
As a user pointedly commented on this topic: “Stop stalking and start deeply understanding audiences.” This highlights the importance of being strategic in measurement, data collection, and decision-making.
What comes next?
The debate over the elimination of third-party cookies has generated mixed opinions: Users are in favor of this measure, while advertisers, especially those from small and medium-sized businesses, view it with skepticism.
Before the cookie era, servers stored limited user data, such as IP addresses and access times, but what happens now? The key lies in having well-configured servers that can collect as much data as possible and combine it with zero and first-party data strategies.
Online advertising will experience significant changes, as companies will depend more on the highest bidder and less on individual user identification, as the rejection of cookies by users leads to a loss of revenue for websites that rely on advertising.
According to El Confidencial (2024), some sites have begun to implement small payments for rejecting cookie tracking, a change supported by the AEPD and the European Union, although not well received by all users.
It is important to highlight that in this new landscape, cybersecurity becomes even more crucial. Without cookies, we could face malicious cookies that steal sensitive data and compromise user security. Although some see this change as necessary to protect privacy, it also poses significant challenges in terms of security and online trust.
Extracting data from websites will become more difficult, potentially increasing the relevance of platforms like HubSpot. And of course, it also means an increase in data costs and a possible concentration of the market in the hands of a few large companies.
Trust, connection, and ethics: The challenges of digital marketing today.
Now, the questions revolve around the effectiveness of these alternatives in terms of accuracy, relevance, and cost for advertising segmentation and data-driven decision-making.
However, beyond these technical issues, brands face a fundamental challenge: earning the trust of consumers in an ever-changing digital environment. Transparency, ethical data collection, and respect for user privacy are imperative for building enduring relationships in this new digital landscape.
It is essential that brands are honest with users about how they use their data and provide clear options for its management. Obtaining user consent before collecting their data and using it transparently and responsibly are crucial practices. Also, offering users the option to opt-out of tracking is vital for building trust.
Furthermore, innovation should focus on creating tracking tools that respect privacy, offering personalized experiences without invading users’ privacy. This opens the door to collaboration among peers, publications, and second-party data to understand customer behavior and to invest in advanced technology, such as AI.
The challenge lies in balancing the delivery of relevant experiences with respecting users’ autonomy over their data. Investing in the collection and analysis of proprietary data, obtained directly from users with their consent, will be fundamental for personalization and strategic decision-making.
In conclusion, The end of third-party cookies invites a profound reflection on the future of digital marketing. This is an opportunity to build an ecosystem that respects privacy, where trust is the foundation of relationships between brands and consumers. Adapting to this change will be essential for the success of digital strategies in the new era of privacy. The digital landscape is dynamic and demands constant adaptation. Brands must be prepared to embrace change and explore new ways to connect with their audience, always respecting ethical principles and privacy.
At The Ideas Factory, we integrate creative brand-building solutions for companies of all sizes. If you want to adapt to this new digital landscape and ethically connect with your audience, contact us. We can help you innovate in data collection and analysis, ensuring the privacy and trust of your consumers.
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