Third-party cookies have gradually become redundant; marketing leaders believe that complete reliance on first-party data is not advisable in the long run
Marketing strategies have been dependent on third-party cookies for a long time. Cookies are needed for new data syncing and onboarding; however, enterprises are working to replace the feature. Marketing leaders clarify that third-party cookie redundancy doesn’t mean the complete elimination of third-party data. Marketers will continue using the data.
The marketing industry has considered shifting to first-party data in place of the third-party cookie. It is not a new concept, as first-party data has always played an essential role in marketing strategies. Developing marketing strategies requires a clear understanding of the phased removal of third-party cookies’ and the utilization of first-party data. Marketers are reconsidering the real purpose of data collection and how to deploy it effectively.
The prominent disadvantage of shifting to first-party data is that it seldom tells the complete story. A client may agree to share their names, age, location, and gender; however, there is a limit to how much personal data they will divulge.
First-party customer data behaves as the foundation of marketing strategies. Enhancement of the data is done with the help of third-party data. It allows marketers to answer questions that were not answered by the former. Doing this ensures that the client profile is always updated and relevant to the current scenario. Tech-savvy marketers have to keep updating their approach to data-based marketing strategies.
Understanding the difference between third-party cookies and third-party data
Dispersing a common misunderstanding, CMOs clarify that third-party data and third-party cookies are separate from one another. Third-party cookies are being done away with; it doesn’t mean that third-party data will no longer be used. A cookie is a third-party tool embedded by a different website other than the enterprise on an end user’s system.
A third-party cookie generally contains information like tracking data and customization preferences. It does not originate from the organizations or end-users domain. Third-party data is, however, client data that is procured from third-party sources. It means that data didn’t originate from either the seller or buyer.
Third-party data will be crucial in developing efficient, customized customer experience. It will help to develop insights that enhance the enterprise’s understanding of the client and activation scaling.
Inadequacy of first-party data by itself
CMOs point out that first-part data, while critical, is unable to answer all marketers’ requirements. Not every enterprise has the capability to scale the first-party client data. They have leveraged information from their database, building hypotheses, improved understanding of the clients, and better client communication.
Clients are wary about sharing personal data unless they see a visible direct value exchange. Thus even prominent organizations are unable to gather the required amount of data by leveraging only first-party sources. Even with useful quality customer data, the assumptions about clients could go completely go off the rails. Clients are unlikely to divulge information like whether they expect a child or plan to have one, subscribe to cable, or their different personal requirements down the line.
Importance of third-party data
The real advantage of third-party data is that marketers can easily understand the client’s situation without requiring a face-to-face or direct interaction with them. The strategy has been doubly proved right during the pandemic. Client behavioral changes in the last six months can be easily analyzed from third-party data. Most clients will not voluntarily share such data first-hand.
Enhancing first-party data with third-party data will help develop an efficient marketing strategy.