2022 Is Pivotal Year for Shift to First-Party Data
After a couple of years of build-up, 2022 is shaping up to be a seminal year for data privacy. It won’t be long until advertisers will be unable to rely upon third-party data collected about their customers. Most major browsers and platforms – including Firefox, Safari and iOS 14.5 – have already begun sunsetting third-party cookies, while Google’s Chrome will institute this change by the end of the year.
In addition, a number of legislative initiatives in the U.S. seek to provide the General Data Protection Regulation (GDPR) safeguards enacted three years ago by the European Union. The federal Banning Surveillance Advertising Act would outlaw the use of personal data by the likes of Facebook, Google and third-party data brokers. And the proposed New York Privacy Act provides some of the most significant consumer protections at the state level, including the first-ever right to sue businesses for violating an individual’s privacy through data disclosure.
Since today is Data Privacy Day, we thought we’d take this opportunity to look at how marketers are dealing with this important transition.
Still Preparing for a Future That’s Arrived
A recent survey by British software advisory firm GetApp suggests marketers are behind in their preparations for the switch to first-party data. The study found that 41% of marketers believe their biggest challenge will be their inability to track the right data, and 23% of those surveyed are planning to invest in email marketing software due to Google Chrome’s pending move away from cookies.
To adapt to the new cookie-less world, marketers must find new ways to identify and segment their relevant audiences. As noted in a prior blog post, brands can start by building trust and connection with their consumers through transparency, understanding and follow-through as it relates to gathering and using that first-party data.
But that’s just the beginning. Brands should constantly affirm consumers’ confidence that sharing data is a worthwhile exchange by providing valuable and personalized content. By improving customers’ interaction with the brand, they may become willing to share even more useful information.
First-Party Data Not the Only Answer
Even though paid and organic platforms are moving away from third-party cookies, that doesn’t mean digital media can’t still help marketers identify high-value consumers. There is still a wealth of information, like contextual data and other strategies, that can identify behavioral triggers previously used to determine the value of a consumer’s likelihood to engage with a brand. The results may yield even higher quality insights than third-party cookies, which were known to become stale and out-of-date.
Regardless of the approach they choose, one thing is certain: the sooner a brand starts building out its own means of data capture and audience segmentation, the better it will be positioned in this transformative year for data privacy.
Is your brand set up for success in a cookie-less world?
