Most recently Google announced that it would stop using third-party cookies in Chrome by 2024. Marketers around the world got challenged by this statement. In essence, this means they will need to reconsider all their marketing strategies, and some of them in a more radical way to cope with this "new normal" that is looming on the horizon.
What is a Cookie?
Cookies are text files that store information about user behavior on various resources all over the Internet. They contain the following data:
Type of operating system of the user;
The site visiting time;
Account - login and password to enter the site;
Products and pages viewed by the user.
Cookies are stored on your computer each time you visit the site. When a person visits the resource again, text files are sent to it. They are used to identify the user. The site receives information about the past actions of a person and can offer relevant ads, and track the effectiveness of marketing campaigns.
A cookie is a piece of data from a website that is stored within a web browser and can be retrieved at a later time.
Types of Data
First-party data (also known as 1P data) refers to data that is collected and owned by a business or organization from its own sources, such as its own websites, apps, and customer interactions rather than being obtained from a third party. As a result, it can be more accurate and relevant than third-party data, which is often collected from a variety of sources and may not always be directly relevant to a particular business. Businesses can use first-party data for a variety of purposes, including targeted marketing, customer segmentation, and personalized recommendations. It can also be used to improve the customer experience, such as by providing more relevant content and offers.
These are the primary cookies that one company has received and then sold or transferred in the process of partnerships or collaborations between companies. It is often considered a more valuable type of data than third-party data, as it is typically more accurate and reliable, and is often collected with explicit consent from the individual whose data is being shared. For example, a company that specializes in collecting and analyzing customer data may share this data with a partner company that is looking to better understand its target audience. Second-party data can be used for a variety of purposes, including targeted advertising, market research, and customer insights.
They are created by other sites, not those visited by the user. These include advertising systems that track behavior of visitors to resources. Marketers use this data to target or run remarketing campaigns so called "catch-up" ads. Third-party data is often considered less valuable than first-party data, as it is collected indirectly and may not be as accurate or reliable. In addition, the use of third-party data is subject to data privacy regulations, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. Companies must ensure that they are collecting and using third-party data in compliance with these regulations. There are concerns about the potential misuse of third-party data, including the potential for unauthorized access or disclosure of personal information. In response to these concerns, there have been efforts to restrict the collection and use of third-party data, including the recent adoption of measures such as the refusal of third-party cookies.
Remarketing is an advertising strategy. It is used to re-engage potential buyers who have interacted with the brand.
Impact of Cookie Refusal
Cookies are small pieces of data that are stored on a user's device when they visit a website. They are used for a variety of purposes, including to personalize the user's experience on the website, to track their behavior and preferences, and to serve targeted advertisements.
In addition, the refusal of cookies may affect the accuracy of website analytics and the ability of website operators to track and understand user behavior. It may also make it more difficult for advertisers to serve targeted ads to users, as they will not have access to the cookie data that is typically used to personalize and target ads.
Overall, the refusal of cookies may result in a less personalized and potentially less functional user experience on the website. It may also impact the ability of website operators and advertisers to understand and reach their audience. This could lead to a decrease in the effectiveness of targeted advertising and a decline in the value of third-party data. In this context, first-party data may become more important as a source of information for companies and advertisers looking to understand and target their audience.
Benefits of First-Party Data
Customized and enhanced experiences: First-party data can be used to customize the user experience on a company's website or products, which can improve customer satisfaction, experience, and loyalty.
Improved targeting: First-party data can be used to better understand and target specific segments of a company's audience, which can improve the effectiveness of marketing and advertising efforts.
Greater trust and transparency: First-party data collection is strictly subject to data privacy regulations and is better positioned among other data types due to increased transparency, enhanced security, greater control for individuals, and increased accountability.
Limitations of First-Party Data
Limited scope: First-party data is typically limited to interactions with a company's own products or services, and may not provide a comprehensive view of an individual's behavior or preferences.
Data quality: The quality of first-party data may be affected by a variety of factors, including the accuracy and completeness of the data collected, as well as the methods used to collect and store it.
Single source: First-party data is typically collected from a single source, such as a company's website or customer database. This can limit the insights that can be gleaned from the data, as it may not provide a comprehensive view of an individual's behavior or preferences.
Do you see these changes as a challenge or an opportunity for your marketing efforts? Share your thoughts in the comments below. We'd love to hear from you!
Disclaimer: This blog post is for general informational purposes only. It is not intended to be, and should not be relied upon as, legal, or as a recommendation of any particular legal understanding. Please consult a qualified professional for specific advice related to your individual circumstances.