When the cookie crumbles: How are marketers gearing up for a cookieless era?

In a move that's destined to disrupt digital marketing as we know it, starting today, 4 January, Google has initiated testing for a cookie-disabling feature in its Chrome browser, set to roll out globally by late 2024. 1% of Chrome users worldwide will be introduced to 'Tracking Protection,' curtailing access to third-party cookies that have long been the backbone of digital marketing strategies.

For years, digital marketers have relied on these snippets of code to deliver personalised ads and ensure seamless user experiences. The impending demise of third-party cookies signals a seismic shift in the industry, as marketers face the prospect of losing vital data, including demographic information and browsing habits of their target audiences. Unprepared businesses could witness significant revenue losses in this new era.

As the clock ticks towards a cookie-less future, pressing questions emerge: How will digital marketers navigate the uncharted waters of consumer targeting without the crutch of third-party cookie data? How will this alter the digital marketing landscape as we know it?

 

Rubeena Singh, country manager India and MENA, AnyMind Group

In facing the cookie-less future, digital marketers are adopting a multi-faceted approach. Firstly, there's a significant shift towards first-party data collection. This involves leveraging data obtained directly from interactions with customers on their platforms, which ensures both compliance with privacy norms and the ability to tailor more personalised marketing strategies.

Secondly, marketers are increasingly turning to contextual advertising. This method involves placing ads based on the content of a website rather than on user behaviour, thus respecting user privacy while still reaching relevant audiences.

Third, there's a growing reliance on machine learning and artificial intelligence to analyse and predict consumer behaviour through data patterns. These technologies help in understanding customer preferences and needs, even in the absence of personal data.

Lastly, there's an emphasis on building stronger customer relationships through enhanced customer service and engagement. This not only fosters brand loyalty but also provides valuable insights into consumer needs and preferences.

Together, these strategies represent a comprehensive response to the challenge of a cookie-less future, balancing effective marketing with the increasing demand for user privacy. 

Sanjeev Jasani, COO, Cheil India

Savvy digital marketers are already preparing for the post-cookie world in several ways: 

Investing in first-party data: Brands are building robust first-party data ecosystems through loyalty programs, website personalisation tools, and opt-in surveys. This data, owned and controlled by the brand, will be crucial for creating targeted campaigns and measuring their effectiveness.
 

Focusing on contextual targeting: Understanding the context of an ad placement, such as the website's topic or the user's recent search queries, will become increasingly important in reaching relevant audiences.
 

Shifting the focus to value and engagement: In a cookieless world, delivering genuine value and creating engaging experiences will be paramount. Content marketing, influencer partnerships, and hyper-personalized ad formats will take centre stage as brands strive to earn their audience's trust and attention.

The second question delves into the broader impact on the landscape. Here are some of the key shifts we can anticipate: 
 

Emphasis on privacy: The onus will shift from tracking individuals to understanding their interests and preferences within a privacy-conscious framework. Transparency and user control will be paramount.

Rise of contextual targeting: As discussed earlier, context will become the new king. Understanding the intent and environment surrounding an ad will be crucial for delivering relevant messages.

Greater focus on first-party data: Brands that prioritise building strong first-party data relationships will gain a significant advantage in targeting and personalisation.

Evolution of ad formats: We'll see more interactive, immersive, and native ad formats that capture attention without relying on intrusive tracking.

Collaboration and consolidation: The fragmentation of the ad tech landscape may give way to more collaboration and consolidation as players adapt to the new realities.
 

While the cookie-less future presents challenges, it also holds immense potential for a more ethical, user-centric, and ultimately, more effective way of reaching consumers. Indian marketers, with their inherent adaptability and resourcefulness, are well-positioned to thrive in this evolving landscape. By embracing innovation, prioritising privacy, and focusing on delivering genuine value, Indian advertising can not only survive but also lead the way in this exciting new era.

Anurag Iyer, CEO, Big Bang Social

Devdatta Potnis, CEO, Animeta

In the ever-changing world of digital marketing, we’re facing a future without cookies, but that won’t slow us down. While Chrome’s browsing data may not be as accessible, smart marketers are finding other valuable sources like video and shopping data. Social media, with its vibrant presence, becomes a key player, proving that adaptability is our strongest suit.

As the industry evolves, marketers are discovering more effective ways to connect with audiences. We’re not just surviving, we’re thriving by tapping into diverse data and exploring new channels to stay ahead.

In this changing landscape, influencer marketing takes the spotlight as a golden opportunity. Creators with loyal communities become essential for personalised messaging. Social commerce, with its impressive growth, becomes a hub for marketers to genuinely connect with their audience.

I see a bright future where marketers not only survive but flourish without cookies. The blend of new mediums and the influence of creators will not just weather the storm but drive the industry to new heights. Embracing change isn’t just a necessity, it’s the key to innovation and lasting success in the dynamic world of digital marketing.

Kalyan Kumar, co-founder and CEO, KlugKlug

The transition to a cookieless world is set to be a significant game-changer in the realm of digital marketing, particularly for performance marketing that relies heavily on tracking and remarketing through cookies. Targeting consumers, especially after they've displayed interest, holds considerable power.

Currently, the future doesn't appear to offer an elegant and graceful transition into the cookieless era. Depending on the readiness of cookies, a shift toward more first-party data-led entities is anticipated. Platforms that control first-party data, such as Facebook, Instagram, and Google, may gain increasing control, emphasising the importance of prediction algorithms and machine learning.

This shift could impact traditional performance strategies, with a potential continuation of old-school philosophies like awareness, reach, and frequency campaigns, albeit with a shift away from relying on cookies. Larger platforms, including social media and e-commerce platforms like Amazon, are likely to play a more significant role for consumers who regularly visit or engage with them.

First-party data control, especially by major players close to consumer transactions, suggests the emergence of new versions of e-commerce best practices. Despite the cookieless landscape, targeting remains essential, leading to the development of different optimisation and ad tech technologies focusing on predicting consumer behavior based on historical data.

The evolving landscape may grant platforms like Facebook, Instagram, and Google even more significant shares, while e-commerce platforms become increasingly influential. The control of first-party data by major entities prompts a shift in focus towards new e-commerce best practices.

Despite the changes, targeting remains crucial in a cookieless world, driving the emergence of diverse optimisation and ad tech technologies. The industry, worth approximately USD 600 billion annually, faces challenges, with solutions in progress but not yet clearly defined. The substantial financial stakes likely drive ongoing efforts to adapt to the evolving landscape.

Vinay Tamboli, senior vice president – digital analytics and consulting business, LS Digital

Google's decision to phase out third-party cookies by 2024 will have a significant impact on the digital marketing landscape. Third-party cookies have been a cornerstone of digital advertising, enabling targeted advertising and user tracking across the web. Their phase-out will lead to a shift in how advertisers target and track users online.

Here are some trends in how marketers are gearing up and planning to handle this change:

Focus on first-party data: With the diminishing reliance on third-party cookies, the value of first-party data will surge. Companies will emphasise collecting and leveraging their customer data obtained through direct interactions. This data will be crucial for personalised marketing campaigns.

Privacy centric marketing: The emphasis on user privacy will become more pronounced. Marketers will need to adapt to new methods of targeting and tracking that respect user privacy. Contextual advertising, where ads are targeted based on the content of the webpage rather than individual user data, might gain prominence.

Shift towards alternate technologies: Alternative tracking technologies such as Google's Privacy Sandbox, which aims to offer privacy-friendly solutions for targeted advertising, are likely to emerge. New identifiers or technologies that comply with privacy regulations while allowing targeted advertising might be developed and adopted.

Rise of AI and machine learning: AI and machine learning technologies will play a pivotal role in optimising advertising without relying heavily on individual user data. AI-powered algorithms will help in understanding consumer behaviour patterns and preferences without breaching user privacy.

Regulatory impact: Regulatory bodies are becoming increasingly vigilant about data privacy. With stricter regulations like GDPR and CCPA in place, the digital marketing landscape will continue to evolve in response to these regulatory changes. Looking at this challenge, we at LS Digital, are helping our customers to build their ‘Marketing Data Infrastructure’ to get ready for this change.

Ganapathy Sankarabaaham, CEO, Vajra Global Consulting Services

It will not be entirely cookie-less, as only third-party cookies will be phased out. We can still use zero-party, first-party, and second-party cookies. Also, Ad platforms will evolve, as Google has now announced Google Ads Data Manager as a way to use first-party data with their Ad solutions.

Yash Chandiramani, founder and chief strategist, Admatazz 

We've been preparing for this since 2020 by playing out various theories. Any good marketing strategy doesn't depend on third-party cookies to target their consumer demographic. That comes from first-level targeting filters, location, and platform selection. Pixel-led targeting helps of course, but only further down in the funnel once the TG is targeted with the ad. 

There are three things we need to pay attention to in 2024:

First, adhering to all the new solutions by platforms e.g. server-side tracking implementation by certain platforms. 

Secondly, relying on first- and zero-party data. We are pushing clients to focus on robust CRM solutions to increase dependability on good quality owned data. 

And lastly, we feel the silver lining in all this is that agencies with their marketing and advertising basics in order will separate from the chaff. A lot of dependencies will be on the creative team to understand and deliver the message to a larger audience, so setups with performance and creative in-house will be able to tackle this better.

Dippak Khurana, co-founder and CEO, Vserv

Cookieless World - The beginning of the end has started! Marketers and agencies have already embraced the shift. They will start leaning on these 3 methods to make their marketing investments more effective i.e. build their first-party data, borrow second-party consented data, or rely on contextual targeting. The question is which one gives them high-quality outcomes and unduplicated reach across publishers, including walled gardens. Every marketer should go out and experiment with all 3 methods and find their own match.