As the retail industry grows and privacy becomes more important, using strong first-party data is becoming crucial for success. Introducing strict standards for measuring results will also help retail media networks provide trustworthy data that brands need.
The End of Third-Party Cookies and Its Effects
Google plans to stop using third-party cookies by the third quarter of 2024. This is a big change because these cookies have been important for understanding user behavior and making ads more personal. Experts from the Forbes Agency Council explain that this change will greatly affect how ads are targeted and personalized, which could lead to less effective ads and potentially lower profits.
Moving Towards First-Party Data in Ads
Despite the upcoming change, 78% of programmatic ad purchases in the U.S. retail still rely on third-party cookies, according to eMarketer. This dependence is risky because it may lead to less effective ad targeting and lower returns on investment. Experts suggest that marketers should start using first-party data, which comes directly from customers and provides more reliable insights for better ad campaigns.
Building Better Relationships and Data Quality
In response to the loss of cookies, brands are focusing on improving relationships with platforms that have rich first-party data. This includes social media and other online channels. By using a variety of tech tools and focusing on direct interactions with customers, brands can continue to target ads effectively and respect user privacy.
Standardizing Measurements and Staying Compliant
As the industry changes, measuring ad effectiveness across different networks becomes challenging. Experts emphasize the need for standardizing how measurements are done to make results more consistent and accurate.
Key Strategies for a Smooth Transition
- Focus on First-Party Data: Collect and use data directly from your customers to improve targeting and campaign effectiveness.
- Use Contextual Targeting: Understanding where your ads are placed can help reach the right audiences without needing third-party data.
- Check Reliability of Third-Party Data: If using third-party data, make sure it’s reliable and consider it as additional support, not the main source.
- Promote Privacy-Focused Marketing: Build a strong system around your data that follows privacy laws and uses it effectively for advertising.
- Stay Updated with Regulations: Keep up with changes in rules and regulations to ensure your marketing strategies are compliant and effective.
In this changing environment, working together, being innovative, and being open will help brands and retailers manage these changes successfully, always keeping the customer’s best interests in mind.
