Google has abandoned its third-party cookie deprecation plans
This might have you wondering about your data strategy.
But fear not! First-party data remains the cornerstone of personalisation.
Where to from here?
Many marketers have made significant progress in adjusting their strategy, focusing on capturing first-party data.
A future with no third-party cookies was the driving force of the change in strategy.
That changed after Google’s 22nd July 2024 announcement that it was no longer planning to deprecate third-party cookies.
Let’s not deviate from the strategy. The path ahead should remain focused on first-party data.
We all know that the best data is the data your customer provides you.
Whether explicit or implicit data, its value always supersedes purchased data.
Most marketers will trust the data they have sourced directly from their own campaigns or from other areas of the organisation.
Our focus needs to continue on the collection of first-party data because you can see Google will provide Chrome users with the ability to “adjust their choice at any time.”
In his discussions with multiple parties while preparing his article, Andrew Birmingham heard a consistent message, no backsliding.
“The message from industry associations, agencies, and service providers was uniform; brands need to avoid the temptation to back-pedal and continue to build out first-party data capabilities.” – Andrew Birmingham
Much of this discussion is centered around the B2C marketer and the impact these changes would have in the context of advertising. Marketers in B2B or high-value environments know the power of first-party data. We need to be aware of these changes and we need to stay on the path.
First-party data will always be your first choice.
Many Australian businesses have moved beyond third-party cookies & they can prove the uplift in engagement.
“Media companies have already invested significantly in first-party data architectures, and say they are able to demonstrate the benefit to brands.
News Corp’s Paul Blackburn, Director of Commercial Data & eCommerce, cited 150 per cent increases in click-through rates for travel business Beyond Journey via News’ first-party data stack.
It’s a similar story at Nine, where chief data officer Suzie Cardwell pointed out the publisher-broadcaster has been developing first-party data infrastructure since well before cookie deprecation kicked off with Apple’s Safari in 2017 – and cited data matching boosting online visits for Coles by 32 per cent.”*
*SOURCE: Andrew Birmingham | NewsPlus | Mi3 | “Apocalypse not now: Google’s cookie rug pull points to ‘deprecation by default’ but market has already moved on – and regulators are lining up” | 23rd July 2024
The announcement from Google:
A new path for Privacy Sandbox on the web
…we [Google] are proposing an updated approach that elevates user choice.
Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.
We’re discussing this new path with regulators, and will engage with the industry as we roll this out.
SOURCE: Google | The Privacy Sandbox | Anthony Chavez | VP, Privacy Sandbox | 22 July 2024
Australian regulators are watching
Continued data breaches, hacks, and poor data management by some Australian organisations have increased citizens’ concerns.
The Australian privacy commissioner has warned that third-party suppliers are “a real weak spot” for protecting customer privacy after Australian user details were compromised in a leak of supplier data held by New South Wales and Australian Capital Territory clubs.*
*SOURCE: Josh Taylor | The Guardian | Third-party providers a customer data ‘weak spot’, Australian privacy commissioner says | 6th May 2024
IMAGE SOURCE: Linkedin | Office of the Australian Information Commissioner Company Page
The reason Google positioned the need to sunset third-party cookies in 2020, is still valid today
Google Ads | Charting a course towards a more privacy-first web
…as our industry has strived to deliver relevant ads to consumers across the web, it has created a proliferation of individual user data across thousands of companies, typically gathered through third-party cookies.
This has led to an erosion of trust: In fact, 72% of people feel that almost all of what they do online is being tracked by advertisers, technology firms or other companies, and 81% say that the potential risks they face because of data collection outweigh the benefits, according to a study by Pew Research Center.
*SOURCE: David Temkin, Director of Product Management, Ads Privacy and Trust, Google | Google Ads & Commerce Blog | 3rd March 2021
“81% say that the potential risks they face because of data collection outweigh the benefits“*
Personalisation may be one way to alleviate a person’s concern about how their data is being used
It’s safe to say one of the main reasons Google headed towards third-party cookie deprecation was based on concerns from “average Joe” that their data was being misused.
I think part of this concern is that the average person doesn’t understand how data is used in marketing campaigns, where it’s stored and who has access to it. Our role is to not just educate, but to actually make these things easier to understand.
Some people are still uncomfortable with an email addressing them by name! I don’t recall people getting up in arms when highly polished, expensive, personalised direct mail arrived in their letterbox.
I’d suggest a reasonable level of personalisation and well designed emails, should enhance trust.
Have you received phishing/scam emails where your name is absent or spelt incorrectly or a logo just doesn’t look quite right? They’re clear giveaways, well perhaps to the well trained eye at least.
As Australian organisations prepare for the August update to the Privacy Act, it’s a good time to consider how we communicate those changes.
Most companies assume people never read privacy policies, and it’s probably a safe assumption.
However, a CX-centred organisation should explore ways to communicate the Privacy Act changes to their audiences in such a way that it makes sense and is easy to comprehend.
ADMA is encouraged to see that Google has taken a different approach
“For marketers, the proposals put forward in the Privacy Sandbox to date have been concerning due to the negative impact they would have on advertising effectiveness and campaign performance, whilst still not meeting privacy laws,” said Martins “ADMA is encouraged to see that Google has taken a different approach, rather than dogmatically pursuing a solution that would not benefit either the consumer or the marketer.
We look forward to Google engaging with the industry as it rolls this out.“
SOURCE: Andrew Birmingham | NewsPlus | Mi3 | “Apocalypse not now: Google’s cookie rug pull points to ‘deprecation by default’ but market has already moved on – and regulators are lining up” | 23rd July 2024
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In summary
- Stay the course. If your organisation has taken specific steps to address what we all thought was the end of third-party cookies, don’t deviate from your strategy.
- Google has changed its mind multiple times and may change it again.
- You must convey the value proposition in the data exchange between yourself and your customers. Remember, 81% say that the potential risks they face because of data collection outweigh the benefits.
- Make time to strategise how your communications instil trust. Be open and transparent when collecting data, balancing the “want” to obtain as much data as possible with the “need” to collect the right data.
Tips to help you navigate the new Australian Privacy Act – subscribe today
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