What is zero-party data?
Data is being collected on individuals and exchanged everyday between systems and third parties, but soon the tools to collect this data are radically changing. In order to understand why zero-party data is so important we must first understand the various ways that data is currently being collected.

1. Third-party data – data purchased from outside sources that aren’t your own. This data is typically purchased from data aggregators, advertisers or platforms such as Meta or Google. This is very valuable in connecting brands with customers they have no previous interactions with, but third-party data is also the most unreliable of all data types as it is typically pulled from a large pool of data and openly sold.
   
   
2. Second-party data – obtained by a company via first party data collection methods and then is sold to another company. The key difference between second- and third-party data is second-party data is usually specialized as it often obtained through strategic partnerships and specific deals instead of openly sold like third-party data.
   
   
3. First-party data – directly obtained from a user via their behavior on a company’s website or mobile app. Examples of this are sections clicked, scrolling/hover time, active time spent in session, purchase history, and browsing data.
   
   
4. Zero-party data – obtained directly from your users. This data is often most valuable and accurate amongst all data types. The reason being is your customers are willingly giving up this information to you so you can trust the source more implicitly. New methods of zero-party data collection are evolving everyday but currently this information comes from surveys, customer profile information, and pop-up questionnaires.

• The data collection landscape is changing
  We are entering a new phase of data collection due to new privacy regulations which have been a hot topic of debate after scandals such as Cambridge Analytical and documentaries such as “The Social Dilemma” have begun to open consumers’ and legislators’ eyes about how valuable data is and how it can also be misused. This trend of data protection will likely only continue so the time to develop your own methods of zero party data collection is now.
  
  
• Third-party data tools are disappearing
  In response to this these trends, companies like Google and Apple are completely revolutionizing the way they collect and share data. Google is focused on removing the infamous “cookies” from its web browser that has been the leading tool in third party data collection. Of course, they won’t be eliminating data collection entirely, but most of their data will be stored in house and outside parties will not have nearly the same level of access available to them. Apple on the other hand is putting the ball back into the consumer’s court and giving them the option to allow information to be exchanged between apps.

• Member attributes
  The most basic is capturing data from a member’s profile either upon enrollment or after the fact. This gives you the chance to collect some preferences from your customer beyond their basic demographic and contact information.
  
  
• Pop-up quizzes
  Another great method of catching and instantly utilizing a new user’s attention is giving a small pop-up questionnaire to your customers that contains just a few questions that once answered will direct them to specific products that fit their interests.
   
  
• Questionnaires
  Once you have a strong customer base you can also send your customers direct surveys which can range from details of level of service, specific products or preferences they are interested in, or general overall feelings of your brand.
   
• Online polls
  Another popular feature being implemented today are online polls where members can vote on their choices for things like next month’s special release, their favorite designs, etc. This helps to give members a feeling of belonging and participation in the company’s direction.
  
  
• Contests/competitions
  One way to drive engagement in your campaigns and promotions is to create an online competition amongst your customers where the top participants are granted an extra bonus on top of the regular promotion. These contests can be centered around certain information submitted or actions taken by your customers and can be incorporated into your zero-party strategy.
  

 
All of these methods have their advantages, but the true road to success lies with utilizing a combination of these methods. Not all of your customer base will respond with the same level of enthusiasm to each method, so it is always wise to diversify your zero-party data marketing amongst your entire platform.

How to use zero-party data
Now that you have obtained a new higher level of data via your zero-party data strategy it is important that this data is not wasted. Make sure you understand your objectives before you launch your data collection, or it will be worthless. You are less likely to have customers repeat your data collection methods if they aren’t seeing a tangible benefit. Customers are tired of their data being harvested without being rewarded. There are also many ways of utilizing this data to reward your customers.

• Quick and easy enrollment process
  Zero-party data should be used to ease enrollment by collecting the necessary minimal data points but also can be paired with a reward incentive if they complete a quiz that gives additional member profile answers. This combination can help lower customer acquisition price and start off your customer with a quick and easy signup as well as feeling rewarded for providing additional data points. This in turn helps to transform your program into a zero-party data platform.

• Targeted messaging
  Once customers start giving you their preferences you can tailor your communications to each member in the form of newsletters, informational videos/blogs that are sent out, invitations to live events/workshops, new product campaigns and promotions, etc. to the customers who are most interested in those areas which should increase your acceptance and participation rates among customers.

1. Building more personalized campaigns – your customers are telling you exactly which products and services they care for more, so you know exactly what to offer them. A clothing retailer, for example, can target customers by their favorite season or article of clothing and target new releases specifically for that segment. Once your campaigns become more personalized your customers will no longer see those as spam, but instead will be eager and excited to see the new campaigns and engagement will rise.
   
   
2. Improved forecasting – when you are collecting zero-party data from customers, you have the ability to employ your data collection for future events as well instead of just reporting on data from past behavior. This allows you to gauge interest on future releases or events to see what your members really desire going forward. For example, sending out a survey to your members on potential new products launching next year.
   
   
3. Simplified enrollment – when customers feel valued for their data they are more willing to give it up. This can play into easing your enrollment process by requiring fewer mandatory data collection points upon enrollment. Instead of being bogged down by a long enrollment process your members can give bare minimum details to get started in the program and then enter that information after the fact as they find out how much these answers benefit them and their experience.
   
   
4. Improve rewards – when you receive direct customer feedback your members can let you know how they want to be rewarded so you can tailor your promotions to hit those desired rewards and increase engagement & satisfaction. These rewards can also be applied to your referral program and turn your members into brand ambassadors.

How we can help guide you through the new era of zero-party data
We has kept a close eye on the evolving landscape of data collection, processing and regulation. As we have seen and discussed where this landscape is heading, zero-party data collection, in GDPR compliance, has been a key cornerstone of our Loyalty Platform. Within our loyalty platform you will have access to a wide range of first party data such as transaction details, rewards redemption, participation within your program which combined with our zero party data collection tools will surely help gain and retain customers at a much higher rate. Some of these tools include:

1. Custom attributes – every program has member details it collects such as name, age, home location, etc. Our program gives you the option to create custom data points you want to collect from your members in a date, text or number format. These data points can be optional or mandatory depending on your preference and can be required for enrollment or adjustable within the member profile area. Once your members have submitted answers for these attributes, your member will automatically be assigned to any segments related to those attributes. Ideally, those segments would include personalized targeting for promotions and campaigns.
   
   
2. Surveys – we have gone a step further and are expanding on the custom attribute methodology. Instead of simple data collection points, surveys allow you to send out more in-depth questionnaires to your members which can be used to gauge interests in new products or services ahead of time. These answers can also be fed into your segmentation tool for increased personalization and communication to your members.
   
   
3. Tailored content – after employing these data collection tools you must now utilize that data properly or your customers will be less likely to volunteer their personal information. In combination with your platform’s data analytics and marketing automation tools you will be able to personalize discounts, newsletters, campaigns, invitations to your customers on an entirely new level. You will even be able to tailor your communications to their preferred medium and timing. Our artificial intelligence and machine learning are working in the background to determine your customer’s lifetime value and the source of this data is integral to the results.

 
Our strategy and consulting experts are constantly learning the newest methods of data collection and helping our system evolve to meet those needs. Learn more about this process and if the Loyalty Management System is right for you, here.

Frequently Asked Questions about Zero-Party Data
What is zero-party data?
Zero-party data is data directly shared by your customers with your company, often proactively. This data is often the most reliable among all data types.

How to collect zero-party data?
Zero-party data can be collected in various ways:

• Account information
• Pop-up quizzes upon visiting
• Customer surveys
• Online polls
• Contests

Third-party cookies have helped organizations create targeted ad campaigns for years. As Google plans to phase them out of its Chrome browser in 2024, marketers have shifted their focus to zero- and first-party data.

Zero-party data -- a term coined by Forrester Research in 2018 -- doesn't require analysis and offers insights directly from customers. Conversely, first-party data comes from customer behavior, such as web activity, and requires analysis to derive relevant insights. Although first-party data is a more well-known term than zero-party data, many marketers have likely used zero-party data since the advent of the internet.

To help organizations create successful marketing campaigns in the absence of third-party cookies, marketers can use both zero- and first-party data.

What is zero-party data?
Zero-party data is information that customers voluntarily share with organizations. Some experts consider this term an evolution of explicit data because customers explicitly share it with organizations. Since Forrester coined the term, experts have identified zero-party data as a way to drive personalized marketing campaigns.

Organizations can collect this data from various sources, such as website forms, polls, membership applications and surveys. Although some customers may proactively offer zero-party data for nothing in return, organizations commonly treat it as currency and offer a reward -- such as an e-book, webinar or discount code -- in return.

This data can give marketers accurate audience insights because it comes directly from customers. As organizations collect data through polls, surveys and form submissions, marketers can use it to tailor product recommendations, messages and offers to each customer. In this sense, the way marketers use zero-party data takes on a conversational nature that fosters strong relationships between organizations and their customers.

What is first-party data?
First-party data is behavioral information that organizations collect to improve CX as customers interact with their websites, apps, products and social media channels. To collect this data, web developers place a code on the organization's media assets so that CX teams can track users' IP addresses, login credentials, browser language, timestamps, demographics, which sites they visited and items they left in their shopping cart. Organizations then store this information in their CRM platforms.

This data enables marketers to re-target customers with relevant product ads after they leave the site. Additionally, it can help marketing teams create customer segments based on interests, topics, products and demographics. To enhance personalization and segmentation further, marketers can use both first-party and zero-party data to target users with the right messages.

Differences between zero-party data and first-party data
Although zero- and first-party data both help marketers personalize their campaigns, they differ in data analysis, accuracy of insights and customer awareness.

Data analysis. Zero-party data offers explicit insights directly from customers, so organizations don't need to analyze this information to derive useful business insights from it. First-party data, on the other hand, requires organizations to analyze it before they gain insights.

Insight accuracy. Typically, zero-party data offers more accurate information than first-party data because the data comes directly from the customer.

With first-party data, organizations rely on an intermediary -- the tracking pixel -- to collect behavioral information, which can sometimes produce inaccurate insights. For instance, first-party data lets organizations track which webpages users visit on their sites. However, a customer may visit a webpage and not have a strong interest in the site topic or products.

Customer awareness. Customers voluntarily share zero-party data with complete awareness. However, they may not know when organizations collect first-party data. Various privacy laws around the world, such as the European Union's GDPR, require organizations to gain customer consent before they track first-party cookies. Yet many users consent without fully understanding what they agreed to. Therefore, first-party data can spark conversations about data privacy.

Privacy laws also require organizations to offer transparency into how they collect and use first-party data. To ensure transparency, organizations can craft privacy policies and build cookie notifications into their websites and other digital media assets.

Zero-party data First-party data
Data customers willingly share with organizations <=>Data organizations collect from customer activity on their digital assets

The most relevant and accurate data <=> Highly relevant and accurate data

Data from surveys, forms, polls, membership applications, etc. <=>Data from personal information, web activity, purchase history, subscription status, etc.

Requires no analysis to understand customer preferences <=> Requires analysis to understand customer preferences

Presents no privacy concerns <=> Presents minimal privacy concerns

Owned by the customer <=>Owned by the organization

An effective zero-party data strategy enables marketing teams to collect relevant data about customers, create more personalized experiences and execute more targeted campaigns.

Customers voluntarily and deliberately provide zero-party data through form submissions, quizzes, questionnaires or surveys on a website or landing page, and through customer profiles or membership applications. Some experts view this type of data as an evolution of explicit data, as the individual explicitly gives this information to an organization that may treat it as a form of currency, offering deals, other promotional content or personalized experiences in return.

Organizations can do a lot with zero-party data, so marketers must have a strategy around what information to collect, how to use it to segment and target customers, and how to store and protect that data to ensure prospects and customers trust the organization.

To build an effective zero-party data strategy, marketing teams should follow these five tips.

1. Understand zero-party data's differentiators
A good zero-party data strategy removes the Big Brother aspect that exists with third-party data collection, which teams aggregate from different sources and use to follow individuals around online with ads or other messaging. Zero-party data eliminates this potentially creepy experience. Customers know when they share zero-party data, and organizations can use it to provide customized experiences for target audiences.

The three key differentiators between zero-party and third-party data are the following:

• User-provided information. Marketers collect zero-party data directly from the user. Thus, the organization owns the data, which it can store within its CRM database or another platform. This data is a competitive advantage because its collection doesn't involve outside sources.
• It won't go away. Third-party cookies can collect vast amounts of information about a user's online behavior, but companies and search engines are phasing them out.
• Fewer privacy concerns. Cookies introduce consumer privacy concerns, and organizations should make it clear to users how they collect, store and use zero-party data. With transparency, users can feel confident the company won't sell their data to other sources.

2. Determine what data to collect
From contact information to demographic data, marketers should determine what data to collect through forms, registrations, surveys, questionnaires, etc.

Organizations should understand what data they need for successful segmentation and personalization. Contact information is basic; items like name, email and phone number are all acceptable. Demographic data like interests, location, job titles and company names can create an ideal customer profile, and marketers can use this information to tailor different campaign messaging and timing.

Marketers should not collect too much information at once. Users may turn away if asked to fill out too much or unnecessary data, so marketing teams should balance what to collect and what they can deliver in return.

If an organization already knows certain user data, they can use progressive profiling in forms to ask additional questions. For instance, if someone already filled out a form with basic contact information, the form can prompt them next time with different questions. This approach avoids making prospects fill out the same data repeatedly and collects more data at different touchpoints.


3. Locate where to collect data
Between the company website, customer support platforms and surveys, marketers have plenty of places to collect zero-party data. These locations include the following:

Website forms and landing pages. At these points, individuals provide data in return for something of value. Many organizations offer webinars, exclusive events, white papers, e-books and other content in return for this data. Other website tools, such as pop-ups and chat flows, also offer valuable ways to collect data and engage with contacts.
Surveys and questionnaires. This option enables customer success teams to collect more information about contacts, their interests and how they feel about their purchases.

 
4. Fit zero-party data into existing marketing campaigns
Zero-party data can strengthen existing marketing strategies and campaigns. In particular, it can benefit the following techniques:

Personalization. Zero-party data can help an organization create personalized experiences and develop market research, mining customer data to see what products or services are stronger in certain segments.
Loyalty programs. Marketing teams can collect zero-party data to drive customer loyalty programs and offer premium content, webinars, discount codes or offers. When added to active campaigns, this data can reinforce success and enable future retargeting efforts.
Customer retention. Information from previous purchases and membership profiles can inform customer retention strategies. For instance, knowing someone's birthday can let marketers know to send a birthday message, or recommend similar products to previous purchases.
Users value data privacy and protection, so organizations must be transparent about how they collect and use -- or don't use -- data.

 
5. Be transparent with customers
Users value data privacy and protection, so organizations must be transparent about how they collect and use -- or don't use -- data. More organizations than ever before have added these types of policies to their digital assets. Many brands have a cookie policy pop up on their sites so users can adjust their settings, which can help build trust between consumers and brands.

A legal and compliance team should help work on the language to use in these policies to protect customers and enable transparency into what the company collects. Organizations can provide a link to its privacy policy with form submissions, and let users adjust preferences or unsubscribe from certain email subscriptions to enable more trust between brand and customer.

Most consumers aren't always willing to share their information with businesses, so marketers try to collect more data to understand their audiences better.

With data deprecation -- like Google's retirement of third-party cookies -- marketers' data sources are dwindling. Yet, one data source has and will continue to remain supreme: customers. When marketing teams receive customer data, they can more accurately understand their audience's needs without infringing on people's privacy. Enter zero-party data, a term coined by Forrester Research for data provided directly from customers.

"What really distinguishes zero-party data is that it is voluntary," said Stephanie Liu, an analyst at Forrester. "This is data that a customer is choosing to share because they liked the brand or they liked the product, and they're getting something in return."

This type of data is unique compared to first-party and third-party cookies, which get data from the company websites or third parties. At Liu's CX North America 2022 session, she dove further into real-world zero-party data examples.

1. Yelp highlights customer preferences
Personalization has become a more common marketing practice over time, as it benefits CX and helps customers feel that an organization understands them. Yet, personalization only works if CX teams collect customer data, which risks making customers feel uncomfortable if they haven't willingly provided the information.

Zero-party data can make personalization more effective and doesn't risk crossing a line with customers because they only provide the information they want to give. For example, Yelp's app enables customers to create a preference center, Liu said. Users can enter dietary, lifestyle and accessibility preferences, among others.

"Yelp clearly did its research on how customers choose restaurants. It will not treat your preferences as filters. It will not hide restaurants that don't meet all of your needs. Instead, in the search results, it tells you which preferences each restaurant meets," Liu said.

To personalize recommendations, Yelp uses zero-party data to highlight restaurants' attributes that align with customer preferences so customers can come to their own conclusions.

2. Mecca prioritizes relevancy over repetition
Repetitive emails are often a marketing team's greatest asset and customers' biggest grievance with companies.

This is data that a customer is choosing to share because they liked the brand or they liked the product, and they're getting something in return.
Stephanie Liu
Analyst, Forrester Research

Mecca, an Australian beauty retailer, found a way to avoid those repetitive emails with zero-party data. In her session, Liu described Mecca's Mother's Day gift finder quiz. At the end of the quiz, it asks what type of shopper the customer is -- ranging from a beauty novice to a beauty lover.

"It helps Mecca segment you to understand the best way to communicate with you to be relevant and helpful but not annoying. For example, if you know next to nothing about beauty … maybe you only need a twice-a-year email," Liu said. "Versus someone who loves beauty but is usually shopping for themselves -- that's going to be a very, very different cadence."

When customers tell the business the type of shopper they are, marketing teams can adjust email frequency accordingly. They can send relevant emails with announcements or sales based on customers' interest in the products. This approach can also help ensure positive CX.

3. Mockingbird collects information over time
Marketing teams sometimes must play the long game to get accurate data and avoid annoying consumers.

Liu said she experienced this zero-party data example when she shopped for strollers from Mockingbird. After she entered her email address, the company asked for her baby's due date. Mockingbird's email frequency and content changed as the due date approached. Early on, emails were less frequent and mostly showcased positive customer reviews, Liu said. Later in the pregnancy, emails became more frequent, as the company knew she needed to decide soon and highlighted strollers' specific features and benefits.

"This is not something they could easily infer … You cannot go to a data broker and buy a data set that says women who were expecting and due in six months," Liu said. "They just asked … 'How should we communicate to you in a way that is most relevant for where you are in your journey?'"

This method shows an understanding of customers individually, while the company gets relevant, timely information to help personalize emails and offer product recommendations.

4. Sephora explains personalized recommendations
The beauty industry is a hub of zero-party data, as customers tend to shop for products that match their skin tones, skincare concerns and personal preferences. If beauty brands have loyalty programs like Sephora's, they can take that data further.

Sephora's loyalty program has users fill out a beauty profile with information on their skin, hair, eyes and concerns or types of products they are interested in. With that data, Sephora can send personalized product recommendations to each customer. Yet, it also goes a step further and explains why those products would work for customers based on their beauty profiles.

"When they make product recommendations in their emails, they tell you why. 'Here's an eyeshadow for your green eyes only. Here's a foundation for your light complexion, a moisturizer for your oily skin,'" Liu said. "It's very transparent. 'Here's what you've told us. Here's how we're using it.'"

This transparency can build trust between customers and brands. Additionally, it gently lets customers know to update their information if it becomes outdated or inaccurate over time.

Key takeaways
Overall, zero-party data can help marketing teams highlight customer preferences and provide and explain relevant recommendations. As a long-term strategy, zero-party data can help marketers learn more about customers over time and build trust.

Zero-party data strategies also take time to build. Getting this information from customers won't happen overnight, and some customers may be unwilling to share. Marketing teams must understand which customers are willing to share their data and how to reward them.

"Identify the data points you need to drive those business outcomes and frame up how knowing your customer better will benefit them. It can't just be about the benefit to you. There needs to be that reciprocity … that value exchange to thank them for sharing that data and to encourage them to share more data in the future," Liu said.

Marketers have been concerned about the cookieless future since Google announced third-party cookie phase-out and Apple introduced modifications that make IDFAs (Identifiers for Advertisers) much less valuable than previously. The Identifier for advertisers is a unique, random, and resettable device identifier (IDs) assigned to an iOS device.

The one thing that hasn’t changed is that customers still want personalization. Specifically, consumers are increasingly interested in personalization, demanding more information from their partner in the digital marketing agency, to rely on, to keep them safe and accurate.

So, the truth is that, without cookies, it will become much harder to track users across the web and serve personalized ads. This could lead to a decrease in ad revenue for publishers and platforms that rely on advertising.

So, if third-party cookies have always been so effective for both customers and advertisers, why are they being phased out? Why cookieless future is happening? If you’re a marketer who depends on third-party cookies to provide tailored insights as people surf the web, what should you do now? In today’s blog, we are discussing these changes and their effects, starting from why cookies are important to digital marketing to tracking user behavior.

The importance of Cookies
Cookies are text documents sent when a user visits the site. This site is designed to help you save valuable information for future usage. They can be found virtually on all sites and they are an everyday practice when using the internet.

But why are cookies really important? Because they save the user’s access history on websites and applications. So, whenever the user visits the website which sends the cookie, it will receive the data back and it will display the page faster. Also, cookies contain preferences and other prior information of the visitors.

Having that in mind, cookies are a great asset to help marketers not only improve users’ web experience but also, the advertisements and content displayed based on their interests. With cookies, you can collect not only behavioral data but also sensitive data.

Furthermore, there are different types of cookies on websites. Now, we’re going to explain some of them. These classification systems can be divided into various types and these sections show the most commonly used on websites.

Sit tight and let’s start!

Cookies for performance
This cookie is used to collect statistics and information regarding visitors to a website. The data that is gathered by Google Analytics can help us track how a user is using a website, and what pages a user is looking at.

Strictly necessary cookies
These technical cookies are necessary for web operation. In such cases, users are not allowed to access the site and services offered on the site. They do not use advertisements or communication. This service includes website security such as loading web pages faster without having to reload certain resources every time the user opens a new page.

Functionality cookies
These cookies allow basic functions and are necessary for the operation of the website. They mainly store preferences such as language, currency, or location. Examples of these types of cookies used on sites are to remember the user’s username and password so that they don’t have to enter it every time they visit the site and to store the user’s preferences such as font size, font type, or other display options.

Targeting cookies
These cookies are used to show users personalized ads. They also help limit the number of times a user sees an ad and help measure the effectiveness of advertising campaigns.

There are other types of cookies that don’t fit into any of these categories, but the ones we’ve just mentioned are the most common. Now that you know what cookies are and what types of cookies exist, you may be wondering how do they work?

How do Cookies Work?
When a user visits a website, the server sends a small text file to the user’s device (computer, tablet, smartphone). This file is generally known as a “cookie.” The cookie is then stored on the user’s device and is used to track the user’s activity on that website.

Some cookies are deleted as soon as the user closes their web browser. These are known as “session” cookies. Other cookies remain on the user’s device for a set period of time after the browser has been closed and are known as “persistent” cookies. Cookies can be set by the website the user is visiting (first-party cookies) or by another website that serves content to that website (third-party cookies).

A first-party cookie can be used to track a user’s activity on a website and store information such as preferences and login credentials. A third-party cookie, on the other hand, is generally used for advertising or tracking purposes.

Differences between first and third-party cookies
Cookies are gathered from a website, that is logged into your computer with your browsing history. What differentiates a first cookie from a third-party cookie is the way it collects data. The first-party cookie was created from the site a user was on. It can collect information on languages and payment methods preferences from information like a username and password, product lists and more. First-party cookies are used to maintain a user’s preferences on a specific website. It also lets websites know when a user returns to the site.

On the contrary, a third-party cookie is created from a domain that is not the website a user is currently on. It can be used to track a user’s activity across multiple websites. They are mostly used for advertising purposes and they collect data such as a user’s browsing history and demographics.

In Cookieless Future First-party data will become more important
For too long, marketing has relied on third-party information to identify the customer base. Marketers now recognize their need for individualized approaches that involve gathering a lot more first-party information and implementing first party data strategies. This may include email address, phone number, address history, and a cookie if the customer consents. The proposed removal of third-party cookies is now more crucial to users.


What does a Cookieless future mean?
The cookieless future is a change in the digital world, as Google’s planned elimination of third-party cookies in Chrome browsers announced in January 2020 (now delayed to 2023).

This cookieless future is one in which marketers will have to increasingly rely on first-party data. The cookieless future will present challenges for marketers, who will need to find new ways to identify and reach their audiences. The most significant challenge will be how to target ads without cookies.

Another cookieless future challenge is how to measure advertising effectiveness without cookies. Advertisers will need to find new ways to track conversions and optimize campaigns.

The cookieless future will also present opportunities for marketers. The focus on first-party data will give marketers a better understanding of their audiences. Additionally, the cookieless future will create a level playing field for all companies, as the use of cookies will no longer be an advantage.

How do we deal with a cookieless future?
How does digital marketing become more cookie centric? Developing an adaptable strategy based on cookies can be tricky. As it has already been mentioned, chrome plans to eliminate third-party cookies by 2023, so the cookieless future is coming sooner than most people think.

So, how can we truly adjust to a cookieless world? What can we do too?

Here’s the deal:

Collect data directly from consumers
Instead of relying on cookie providers, use other aggregation methods to collect information directly from consumers. You can also conduct social surveys or customer satisfaction surveys. Offer interactive material free in exchange for user input. In that way, you can create better relationships with the consumers and improve data security, collecting the right customer data.

Transparency
Brand transparency has become necessary in an effort to protect the rights of the user. There’s not much space for shady attitudes hiding legitimate uses. It’s important for them to understand what you want them to learn about. Currently it’s a purely statutory obligation and also a means of building an enduring relationship with consumers.

While the cookieless future may present challenges for marketers, it also presents opportunities. As cookies become less important, other data sources will become more valuable. First-party data, for example, will become more important as a way to identify and target audiences.

Without cookies, many of the things we take for granted on the web would become much more difficult, if not impossible. Personalized content and ads would be a thing of the past, as would the ability to save your shopping card or login information for later.

Is there any alternative for replacing cookies?
What is the best way to prevent cookies in your web browser? Google knew that the move could affect the ad market, and launched Privacy Sandbox – this tool enables users to define digital advertising operation parameters that guarantee the user privacy. Among the proposed algorithms are FLoCs (Federated Learning for Cohort). It is used by large groups of users to collect user habits and target targeted ads according to their characteristics and interests. This way the algorithm blends people into larger communities with the same interests.

In addition, some believe that contextual targeting, an advertising method, will be tremendously benefit from third-party cookie removal. This is a system that analyzes the content of a web page and displays related ads. This technique does not require cookies or user data, as it only uses the information on the page to select the ad.


Why is Google phasing out cookies?
Google says the reason for eliminating cookies is that consumers want data privacy and more flexibility. Google is “evolving,” suggesting “there is an Internet ecosystem to satisfy these growing requirements “, according to the announcement of Justin Schuh, Google’s Director of Chrome Engineering.

What does a cookieless future mean for data-driven marketing?
A popular online marketing tool for gaining information on customer behavior is disappearing, and industry professionals must seek new methods. Browsers have decided to stop tracking cookie data — which track users’ behavior on websites — due to privacy concerns. Apple, Safari is blocking cookies, and Google plans similar moves by 2023 for the market-dominant Chrome browser. This is a significant change in a traditional advertising strategy using cookies. The third-party cookies are particularly affected.

Advertisers will still be able to place google ads on websites and track how many times they are seen. But they will not be able to track individual users as they move around the internet and build up detailed profiles of their interests.

What impact will this have? The cookieless future is likely to lead to a shift in how advertising is bought and sold online, away from the current system known as real-time bidding, or RTB. Currently, when someone loads a web page with an ad space on it, an auction is held in milliseconds, with advertisers bidding to have their ad shown. The winner of the auction pays the price they bid on, and their ad is displayed. Cookieless future will make this process more difficult because there will be no way to identify individuals as they move around the internet.

How prepared is the advertising industry for a cookieless future?
The cookieless world is coming, and the advertising industry is far from prepared for a cookieless. The ad market is booming, with new ads being released every day. While significant progress has been achieved in advance of the impending sea change in digital targeting, measurement, and attribution, the clear picture remains unchanged as Google continues to change its timeline and privacy policies.

Widespread panic and confusion about how to move forward has not yet set in, but it is only a matter of time. Many are still hoping for a cookieless future where they can continue to track users, but that seems increasingly unlikely.

What does cookieless mean for marketers in 2022?
As technology evolves, digital marketing generates and collects additional data. Whenever a person visits a web page, users can see their own trace on their web browsing. Imagine how much data is in Big Data. Websites collect user data via cookies. This helps brands improve visitor experiences on their websites by better understanding their profile.

The problem is collecting and using data on the site can be challenging as it relates in part to privacy. Google Chrome has announced a new policy on deleting cookies. The cookieless future is a challenge for the marketing industry, but it’s also an opportunity. Marketers need to find new ways to collect data and understand the customer journey. They also need to be prepared to answer difficult questions about privacy and data collection. Marketing communications will also be affected.

The impact of a cookieless future
The impact of a cookieless future is unknown, but it could mean big changes for the online advertising and marketing industries. Cookieless future may also spell the end of personalized ads and targeted content.

It is possible that a cookieless future could result in a more private and secure internet experience for users, but it is also possible that it could lead to a less effective and useful internet overall. Only time will tell what a cookieless future will truly mean for the internet as we know it.

Are cookies really going away?
Yes, but only some. At this stage, Google only removes third-party cookies already weakened by blocking Apple’s primary web browser, Safari, and the open-source platform, Mozilla Firefox.

And there’s good news: With a greater emphasis on collecting first-party data, marketers and businesses are more likely to optimize highly relevant and targeted marketing campaigns and provide a high return on investment.

Although the loss of third-party cookies collected across the web can make it difficult to identify individuals, cohorts and contextual advertising can fill gaps by ensuring the right message is still reaching the right people.

The best thing you can do now as a marketer is to stay updated on third-party cookies and other privacy practices that may impact your business or your client’s business. If you’re using third-party data in your advertising, you should immediately consider the alternatives above.

Conclusion
The cookieless future will have a profound impact on the digital marketing landscape. The most immediate consequence is that it will become more difficult to track users across devices and platforms. This, in turn, will make it harder to deliver targeted advertising and measure the effectiveness of campaigns.

In the long run, however, the cookieless future may actually be a good thing for digital marketing. The reliance on cookies has led to some questionable practices, such as dark patterns and ad fraud. Without cookies, marketers will have to find other ways to reach their audiences. This could lead to more creative and innovative campaigns that focus on delivering value rather than just selling products.

So, while the cookieless future may seem daunting at first, it could actually be a positive development for the industry as a whole.

FAQ Cookieless Future

What does a cookieless future mean?
A cookieless future means that cookies will no longer be used to track users across the internet. This could have a profound impact on the digital marketing landscape, as cookies are currently used to deliver targeted advertising and measure the effectiveness of campaigns.