[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/03\/a-post-third-party-cookies-world\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/03\/a-post-third-party-cookies-world\/","headline":"Third party cookies going away: Preparing for privacy-first web with CDP","name":"Third party cookies going away: Preparing for privacy-first web with CDP","description":"Can marketing survive a privacy-first web? These case studies show that not only can they survive, but they may also thrive.","datePublished":"2021-05-03","dateModified":"2024-05-15","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/#Person","name":"Tracey Wallace","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/","identifier":367,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/21377d3250d3cee37a219265f855ca86717424033839661349c4b6845d2250cc?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/21377d3250d3cee37a219265f855ca86717424033839661349c4b6845d2250cc?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/Anon_ident_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/Anon_ident_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/03\/a-post-third-party-cookies-world\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/sap-sapphire-general\/customer-data-sapphire\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},"Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/e-commerce\/","name":"E-Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/E-commerce","http:\/\/www.wikidata.org\/entity\/Q484847"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/marketing-general\/","name":"Marketing","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Marketing","http:\/\/www.wikidata.org\/entity\/Q39809"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/seo\/","name":"SEO","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Search_engine_optimization","http:\/\/www.wikidata.org\/entity\/Q180711"]}],"wordCount":1520,"keywords":["CDP | Customer Data Platform","Consumer Privacy","Marketing ROI","Retail","ROI","Search","Third-party Cookies"],"articleBody":"Google plans to eliminate third-party cookies in favor of a more privacy-compliant approach by 2025. This should be cause for interest, not alarm. Our collection of and relationship with data will continually evolve. \u00a0In March 2021, Google issued a statement saying it won’t offer or use alternatives that allow individual ad targeting, either\u2014the goal, a privacy-first web. They have since softened their stance, delaying third party cookies going away.\u00a0Apple also has unveiled plans that will make it harder for mobile apps to collect third-party data that helps advertisers send targeted digital ads. What does this mean? Prepare for changes to third party cookies because to ignore that writing on the wall is risky.      Face the music: Apple privacy changes hit e-commerce marketing                Apple privacy changes are right around the corner, and marketers who rely on Facebook ads are bracing for major impact. Here's what you need to know.      What are third party cookies? And what’s the difference between 1st, 2nd, and 3rd party data?Third party cookies are cookies placed by a domain other than the website you are visiting.Third-party data is the acquisition of data from neither the first party nor the second party, but rather through strategic placement of data gathering cookies by a third-party. It seems complex, but the core data and the associated levels are straightforward.First-party data comes from the source, second-party data is acquired through the sharing of first-party data.Third-party cookies and clear-cut attribution will soon be marketing tools of the past, yet that future is hard to imagine today. Keep in mind that time is money, the value of first party data grows over time, so acting now is priceless. Real quick, let’s establish what a cookie is: A cookie is literally a text file with small amounts of data stored on your browser.Are third-party cookies bad? Eh, everything in moderation and with a dose of honesty. Most organizations rely heavily on cookies and attribution to:Understand customersLearn more about prospectsInvest in various digital channels\u00a0What will the future of marketing look like? Can marketing budgets survive a privacy-first web without third party cookies?Well, there are several organizations already warming up to the cookie-less future \u2013 claiming updated advertising practices are more effective. Could we really be moving toward greater trust and more accurate advertising?\u00a0      5 years after the end of third party cookies, envisioning heroes amid the wreckage                What will the end of third-party cookies mean for CPG companies? Three scenarios we might see five years from now.      Which data is found in a cookie? What is a cookie crawl?A cookie crawl is an automated, systematic search of web pages to index content. The find on one page will then send the crawl forward through the internet. Data such as personal email cannot be turned up in this kind of crawl unless the information had been deliberately shared by a user on a web form.An evolving strategy: How eBay changed its mind about PPC and third party cookiesThird-party cookies are powerful advertising tools. In a November 25, 2020 Freaknomics podcast episode, the hosts dive into why:\u201cThanks to the cookies on your phone or computer \u2014 such a cute name for such a powerful tracking device \u2014 you are constantly telling the companies who installed those cookies exactly what you are interested in. You also tell them where you live; what you wear and listen to and eat; which political party you hate less than the other.\u201dCompanies use this information to get relevant messages in front of you, on your various devices. And they pay a lot of money to do so.eBay asked that question to the tune of $1 billion a year they spent on various marketing activities. More than half of that budget was going toward targeted digital ads.\u00a0They hired consultants to help determine the ROI of that spend. They talked about a variety of different mathematical theories to use to measure it – none of which sat well with the consultants.Finally, they landed on a natural experiment with paid search ads, or PPC.First, they turned off branded keyword ads. They also turned off ads for specific searches like \u201cused guitar.\u201d eBay expected sales to drop by 5%. Instead, they dropped by half of a percent \u2013 statistically equal to zero.\u00a0\u201ceBay believed that for every dollar they\u2019re spending, they\u2019re getting roughly a dollar-and-a-half back, meaning 50 cents of net profits,\u201d said Steve Tadelis, a researcher on the project for eBay in 2011, on the Freakonomics podcast. \u201cAnd what we showed is that on average, they\u2019re losing more than 60 cents on every dollar.\u201d      What is CPRA? California Privacy Rights Act: Basics and Overview                As CPRA and the privacy-first web continue to gain traction, organizations need to adapt. Customers demand transparency about the collection and use of their personal information. Planning now saves you fines and headaches in the future.      What happened without third party cookies?The story made headlines, but few companies tested out a similar experiment with their own ads. Third-party cookies have become an online security blanket. And researchers like Tadelis conceded that the paid ads worked better when targeted at consumers who weren\u2019t already familiar with eBay, or who weren\u2019t already eBay customers.\u00a0\u201cTargeting really is key,\u201d said Tadelis. \u201cIf eBay would be able to better target ads to customers that are not frequent customers, that\u2019s where you would get the real bang for the buck.\u201dSo, targeting works \u2013 but only marginally. Let\u2019s look at another case study.Bacardi puts first-party data to the test (And it beats third party cookies)In October 2020, Bacardi ran a test for a new product in a new market \u2013 using 100% anonymized data rather than the individualized third-party cookies companies typically have access to on platforms like Google and Facebook.\u00a0The campaign went like this: The company wanted to promote Bombay Sapphire in the UK to see if it would increase sales in the region. To do so, the company \u201ctook 10,000 anonymized identities of people who had visited the gin brand\u2019s distillery or website, and sent them offers like promotional emails or Instagram ads promising drink recipes and early access to new products,\u201d writes Alexandra Bruell for the Wall Street Journal.\u00a0The result was a 9% increase in click-through rate as compared to campaigns Bacardi had run before using third-party data. Moreover, \u201cthe new campaign also saw a 14% increase in cost efficiency as measured by a cost-per-click metric.\u201dIt gave the Bacardi marketing team confidence in the new privacy-first web policies of companies like Google and Apple and a future without third party cookies. Quality customer data can still be acquired with third party cookies going away.      What is CIAM: Benefits, security features, build vs buy decision in 2025                What is CIAM, and how can it protect your business and boost CX? This guide has everything you need to know about CIAM.      A privacy-first web instead of the third party cookies reality\u201cWe will need to hold and own a lot more of our own consumers\u2019 data ourselves, and rely less on the gatekeeping of Google and Apple or borrowing in other people\u2019s data,\u201d said Sebastian Micozzi, senior vice president of digital transformation at Bacardi. \u201cThis challenges us to look at new data sets.\u201dWhile this may be a new challenge for brands that have gotten used to unlimited consumer data access, it can be a welcome improvement to current metrics.After all, the former chief marketing officer of Unilever, Keith Weed told Freakonomics, \u201cThe more relevant you are to the audience, the more interested they\u2019ll be in your message, and the more interested they\u2019ll be in your message, the more likely they are to buy your product.\u201d And the most relevant you can be to your audience is having them already know you, and give you permission (i.e. consent) to advertise to them. A transition from third party cookies dependence to customer profile strategy and the benefits of customer data platforms might be necessary, but more than that, it’s promising!This content is hosted by a third party ( player.simplecast.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowRe-earning consumer trust after backlash against third party cookiesAs of 2019, 72% of people feel that almost all of what they do online is being tracked. 81% say that the potential risks they face because of data collection outweigh the benefits, according to a study by Pew Research Center.Re-earning the trust of customers with consent management and CX improvements available through CDP is the path forward. The trust of consumers on the web may be the catalyst needed for online shopping to hit the market penetration rates we know are possible thanks to China\u2019s wide-spread e-commerce success.\u00a0The U.S. lags, but with privacy fixes on the horizon, and many businesses already seeing success, it might not for long.\u00a0  Do you really know your customer? Find out how a CDP uncovers the insight you need to power CX that drives growth. 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