4 ways to survive third-party data deprecation

In 2020, Google announced it will disable third-party cookies on its Chrome browser. For advertisers who relied heavily on third-party data, this was a major blow. While Google has since announced a delay in third-party data deprecation—with a full phase-out now expected in 2024—this only delays the inevitable. What can marketers and advertisers do to survive this massive move by the world’s largest search engine?

What are third-party cookies?

Third-party cookies are trackers placed by third-party advertisers and not the website owner. This is in contrast to first-party cookies, which are embedded by the website owner and only track your activity and display related ads within the site.

Here’s a third-party cookie example: Let’s say you visit an online apparel shop for the first time and look up yoga pants. A third-party site collects the information. You exit the site and later check your email. Lo and behold, on the side, there’s an ad for the same yoga pants you looked up earlier. This isn’t a coincidence. This is third-party cookies at work, and many advertisers implement cookies as part of their lead generation process.

What is data deprecation?

Deprecation—not to be confused with depreciation—means to discourage the use of something. Data deprecation, therefore, means to discourage the use of a particular modality of data collection. Deprecation is normally enacted by search engines and software developers to limit the use of data for advertising purposes.

Based on the above explanation, you can probably guess that third-party cookie deprecation is the discontinued use of third-party cookies. Consequently, companies can no longer implement this as part of their campaign efforts.

Why is Google removing 3rd-party cookies?

Third-party cookies have long raised the ire of the public and regulating bodies due to privacy concerns. Laws have been put in place to ensure greater data privacy in the digital age. This includes bills like the European Union’s General Data Protection Regulation in 2016 and the US Data Protection Act of 2021. Google’s move is a show of good faith that it takes privacy laws and consumer privacy protection seriously.

How to overcome third-party deprecation

For advertisers, this can be a moment of uncertainty. After all, third-party cookies have been a tremendous part of mapping out the customer journey and determining behavior profiles. However, change isn’t always a bad thing. Companies can stay one step ahead with the following modifications.

1. Prioritize first-party data

Remember that first-party cookies are still allowed, so this is an area to really focus on. Use first-party data to create highly personalized journeys and bring more value to customers. As always, be transparent and make it clear what data is collected, and give opportunities for customers to voluntarily opt in by joining email lists or completing surveys. Highlight the incentives customers get in return for their time or patronage. 

With third-party cookies off the table, customer strategies will need to make first-party data the cornerstone of any lead acquisition campaign.

2. Focus on contextual ads

Contextual ads rely on machine learning to determine optimal ads based on the web content’s page. In other words, if you’re on a yoga blog, then you might see an ad for yoga pants or yoga mats after leaving the site. Ads can also be based on other parameters, such as what visitors enter into the website’s search bar.

While this may sound similar to third-party cookies, the two aren’t the same. Contextual adverts don’t rely on intimate personal data and are fully compliant with the General Data Protection Regulation (GDPR).

3. Hone in on consent management

In a cookieless world, you’ll have to focus more aggressively on alternative data collection methods, such as first-party cookies, email leads, and social media. For each method, implement a separate consent management policy. This is critical for compliance with regulating entities like the aforementioned and globally-accepted GDPR. Consent management is an organized way of ensuring that customers understand that their actions are being recorded and that they consent to it as a condition of interacting with the site/company.

4. Leverage data sharing via data clean rooms

Data clean rooms aren’t limited to major players like Google, Amazon, and Facebook. Look for data clean rooms that serve your niche. Cross-examine your data with those of sponsors, joint affiliates, and other industry partners.

Build data co-ops between you and companies with like-minded but non-competing interests. Examine one another’s data sets. Use their first-party data as your third-party data insight.

Are you ready for Google’s third-party cookie deprecation?

The above strategies require careful management through a customer data platform. With Lytics’ Decision Engine, you can organize and synchronize data through a single and intuitive dashboard. With third-party cookies crumbling, now is the time to explore new ways to track the ever-intricate customer journey. Let Lytics be a part of your changing strategy.