The year 2024 will mark an important milestone in the digital advertising and marketing ecosystem - the end of third-party cookies, known as the 'cookiepocalypse'. This change is a direct response to the growing user demands for more privacy and the changing regulatory landscape. Marketers face the challenge of fundamentally rethinking their strategies to navigate this new environment successfully.
At the heart of this transformation are the creation of proprietary data warehouses storing first-party data from digital audiences and the use of independent analytics to conduct comprehensive and independent evaluations of the effectiveness of marketing activities. This requires close collaboration with advertising technology experts so you can design and implement new and effective strategies for collecting and using first-party data that respect user privacy and align with European regulatory requirements.
Until now, third-party cookies served as a key tool for marketers, allowing them to track users across different websites and target ads. Restricted access to this data poses a significant challenge to advertisers looking to connect with a wider range of potential customers. The phasing out of third-party cookies will have a drastic impact on companies that have relied on this data as a central component of their marketing and advertising strategies.
Taking control of first-party data is crucial for companies’ independence
Businesses face the challenge of protecting users’ personal data, especially when working with leading technology platforms that store data outside the EU, which compromises security and compliance with European standards. The growing reliance on these platforms undermines companies’ data independence.
As third-party cookies will be phased out in the coming year, this paves the way for a rethink of digital marketing strategies that would ensure enhanced transparency and greater respect for user privacy. The pivotal element in this shift is the effective collection and management of proprietary data for targeted communication. High-quality and relevant data foster a deeper understanding of customers and result in more successful advertising campaigns tailored to individual needs. In turn, this improves customer experience, builds trust and loyalty, and encourages positive repurchase behaviour.
Own data warehouses and independent analytics solutions improve the competitive position
Collecting and managing first-party data on digital audiences within our own independent data warehouses mark the move towards independence from major technology platforms. Building our own data warehouses (such as iPROM Private DMP) provides a solution to the challenge of data management in a fragmented digital media landscape, characterized by a battle for dominance between the big platforms as well as attribution issues.
In the future, proprietary independent data warehouses and independent analytics solutions will be the only thing that will offer insights into the actual effectiveness of different advertising channels, platforms and media. The integration of artificial intelligence solutions into the processing and use of this data will serve as the guiding force for designing effective marketing and advertising strategies and buying advertising space in the digital realm
Independent data warehouses not only allow greater compliance with legal data protection requirements but also ensure that data is not shared with other advertisers.
Independent analytics provide a solid foundation for more transparent and data-driven strategic decision-making.
Using first-party data to accurately target audiences in digital media
First-party audience buying in digital media represents an important shift in digital advertising strategies, which have so far mainly relied on third-party data. This approach focuses on collecting and analysing data on the behaviour and preferences of existing customers and visitors to companies’ and organisations’ own websites. This enables the creation of more precise and tailored audience profiles that are essential for creating personalised and effective advertising campaigns. With a clear understanding of their audience’s needs and behaviours, brands can create more relevant and engaging advertising campaigns.
The use of first-party data also allows better segmentation of target groups and the real-time optimisation of advertising messages. This approach results in improved targeting precision, which translates into more effective campaigns and better return on advertising investment, as confirmed by iPROM’s own data and analysis of the effectiveness of ad campaigns using first-party data, which showed that ads targeted using first-party data achieved an 18% better response rate.
Use of 1st party data for digital media buying ensures that ad campaigns are better tailored and more responsive to the audiences’ changing needs and behaviours, which is crucial for success in today’s highly competitive digital advertising space. In addition, in-depth analysis of results combined with other data allows companies to better understand the value of marketing efforts in real time and, most importantly, to optimise marketing investments to achieve the best results in terms of key performance indicators.
The final phasing out of third-party cookies in 2024 marks the beginning of a new era that requires marketers to be more agile, innovative and focused on developing their own digital ecosystems and improving their technological competences. At the forefront of this transformation are ad-tech professionals armed with the knowledge and tools to manage and analyse first-party data effectively and to execute and optimise digital advertising campaigns in a changing digital landscape. This transition will help create a more accountable, transparent and efficient digital advertising environment that benefits all stakeholders and enables the industry to open up a new chapter filled with promising opportunities. If you want to improve your competitive edge and need help on your journey toward independence, please contact me at anze.hribar@iprom.si.