As Google’s deprecation of third-party cookies becomes a reality in 2024, UK businesses are taking action.
A new survey conducted by Capterra, a software and services marketplace, has found that despite 61% of marketers expressing concerns about how the cookie discontinuation may impact their company, nearly half (49%) of all the respondents said their company felt “well prepared” and 44% are “moderately” so.
In fact, for many, the change is perceived as beneficial: More than half (52%) of marketers expect an increase in revenue after the end of third-party cookies and 39% anticipate that it will have a positive impact on business performance.
Capterra surveyed 138 marketing professionals in UK companies to investigate the impact of Google’s deprecation of third-party cookies. The survey found that despite worries about a cookieless future, companies are equipped with alternative methods for data collection.
Preparing for the phase-out, 57% of respondents said their company is relying on alternative channels and 51% are developing new means to collect data. A further 46% reported that they will use Customer Data Platforms (CDPs) to centralise and manage first-party customer data. In terms of the type of data collected, the focus moving forward will be on the following:
- 69% will focus on collecting first-party data
- 64% will leverage second-party data from trusted organisations
- 60% will make use of contextual data
These data collection techniques can help marketers get a clearer picture of their customer base and enhance personalisation while respecting data privacy. In addition, companies will leverage tools to gain key customer insights.
Notably, the majority (78%) of surveyed marketers said their company is investing in Customer Relationship Management (CRM) software to unify first-party data and track customer interactions.
Capterra UK analyst, Eduardo Garcia Rodriguez, said: “The end of third-party cookies does not mean the end of data collection for businesses. The new way to collect data will focus more on first-party data from companies’ websites or data that is proactively provided by customers while respecting data privacy in a consensual manner. Additionally, businesses will look for quality rather than quantity. For example, they will use CRM tools to build and strengthen customer relationships, while finding alternative routes to personalisation.”
However, adapting to a cookieless marketing environment also poses challenges for advertisers, especially for those who rely heavily on them: More than half (53%) of respondents said that over a fifth (20%) of their company’s campaigns are based on data collected with third-party cookies, and 78% of all the surveyed marketers admitted to their increased importance in recent years.
Third-party cookies have helped advertisers track website activities to support a range of online experiences. For example, 86% used third-party cookies to collect general information, such as gender, age, and race, while they have helped a further 83% create personalised ads.
Consequently, the biggest hurdle in the future for most marketers (45%) will be redefining marketing strategies. Respondents identified other challenges too, such as:
- Tracking the right data (42%)
- Relying more on first-party or zero-party data (41%)
- Having to readjust their budgets (36%)
Plus, with the increased demand for ad placements on websites, more than half (55%) expect online marketing competition to increase. To comply with data privacy and stay in the game, UK companies need to take an innovative and agile approach to their marketing efforts.
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