Google's going cookie-free by 2024. How does it impact digital marketing?

Google's long-awaited decision to phase out third-party cookies by 2024 will have a significant impact on digital marketing. Third-party cookies are small pieces of data that are stored on a user's browser by websites other than the one they are currently visiting. These cookies work magically when it comes to targeting and advertising.

Without third-party cookies, digital marketers will lose a key tool for targeting ads to specific users and tracking the effectiveness of their campaigns. This will make it more difficult and expensive to reach their target audience.

Here are some of the specific impacts that digital marketers can expect:

Reduced targeting accuracy: Without third-party cookies, marketers will have less data about their audience's interests and browsing behaviour. This will make it more difficult to target ads to the right people. Third-party cookies have been a cornerstone of digital advertising, allowing marketers to track user behaviour and target them with personalized ads. Without cookies, advertisers may face challenges in delivering highly targeted and relevant ads.

Higher advertising costs: As demand for targeted advertising increases, so will the cost of advertising.

Increased reliance on first-party data: Marketers will need to rely more on first-party data, which is data that they collect directly from their customers. This could include data such as email addresses, CRM data, and website analytics data. Companies will need to invest in gathering, analyzing, and utilizing their own customer data to maintain effective advertising strategies.

Increased investment in new advertising technologies: Marketers will need to invest in new advertising technologies that are designed to work in a cookie-free world. These technologies include contextual targeting, cohort-based targeting, and interest-based targeting solutions. Solutions like Google's Privacy Sandbox, which aims to replace third-party cookies with more privacy-conscious alternatives, could become the norm.

Increased Investment in AI and Machine Learning: As targeting becomes more complex in a cookie-free world, the use of artificial intelligence and machine learning for predictive modelling and audience profiling may become more critical for marketers.

Data Sharing and Partnerships: Marketers will need to engage in more collaborations and data-sharing partnerships to access valuable user insights. These partnerships could involve sharing anonymized or aggregated data to maintain effective ad targeting.

Rethinking Measurement and Attribution: The absence of cookies could make it more challenging to measure the impact of digital advertising accurately. Marketers may need to adapt their attribution models and consider alternative methods for measuring campaign success.

Contextual Advertising: Contextual advertising, which relies on the content of the webpage to target ads rather than individual user data, could gain prominence. This method might become more attractive to advertisers in a cookie-free world.

User Experience and Creativity: With less reliance on user data for targeting, marketers may focus more on improving the overall user experience and creating more compelling and creative ad content.

Regulatory Compliance: Advertisers will need to stay vigilant about evolving privacy and data protection regulations, ensuring compliance with both existing and new laws. Marketers will need to place an even greater emphasis on obtaining user consent for data collection and ad targeting. This shift may require more transparent practices and an enhanced focus on compliance with data protection regulations like GDPR and CCPA.

Despite these challenges, there are also some opportunities for digital marketers in a cookie-free world. For example, marketers who are able to build strong relationships with their customers and collect valuable first-party data will be at an advantage. Additionally, marketers who are able to invest in new advertising technologies will be able to reach their target audience more effectively.

Here are some tips for digital marketers to prepare for a cookie-free future:

Start collecting first-party data now: The more first-party data you have, the better equipped you will be to target ads and track the effectiveness of your campaigns in a cookie-free world.

Invest in new advertising technologies: There are a number of new advertising technologies that can help you reach your target audience in a cookie-free world. Start researching these technologies now and develop a plan for how you will use them.

Focus on contextual targeting: Contextual targeting is a way to target ads based on the content of the web page or app that the ad is being displayed on. This is a good way to reach your target audience without using third-party cookies.

Be transparent with your customers about how you collect and use data: Customers are more likely to trust brands that are transparent about how they collect and use data. Be sure to have a clear and concise privacy policy in place and make it easy for customers to opt out of data collection.

By following these tips, digital marketers can prepare for a cookie-free future and continue to reach their target audience effectively.