Personal data is becoming central to business processes and protecting user privacy is becoming increasingly important for companies. As third-party cookies are being phased out opportunities for targeting users are diminishing, creating new challenges for companies. They must balance the demands for personalized content with the growing ned for data protection and data privacy.

Although the complete abolition of third-party cookies will not happen this year, companies are still facing a decline in their effectiveness for targeting. Various browsers and operating systems are automatically shortening cookie lifetime or even alter their values. In the age of the always-connected user, companies face both challenges and opportunities to focus on better protecting user privacy through consent-based marketing, serving as the cornerstone of a modern, user-friendly and compliant digital environment.

In a previous blog I wrote about building trust with digital media users through consent management. In this post, I will explain how shifting to first-party data strategies and a privacy-by-design approach are helping improve marketing campaigns and build trust.

The decline of cookies as an opportunity to transform marketing

Third-party cookies, small data files that track a user’s online activities, have been used to collect information and serve highly targeted ads since the early days of the modern internet. However, browsers like Mozilla Firefox and Safari have blocked them for some time to improve user privacy. Although the abolition of third-party cookies within Chrome – used by nearly 60% of users according to iPROM’s current research – is not likely to happen any time soon, companies are nonetheless clearly facing a decline in their usefulness due to increasing restrictions.

Cookies, once the foundation of digital targeted advertising, are increasingly viewed as problematic in the context of privacy. The use of cookies is also constrained by system-level solutions at operating system level (e.g. ITP in iOS) and by the growing reluctance by users, who do not accept tracking because they are aware of the importance of data protection and seek better privacy protection. However, users are willing to share their data if they benefit from it and are persuaded to do so by compelling reasons that companies present on their websites and in their apps.

First-party data strategies for efficiency and better user experience

All of the above presents an opportunity for companies to rethink their marketing strategies and focus on alternatives that use first-party data with explicit user consent. Rather than relying solely on third-party cookies to personalise ads, companies can now set up their own first-party databases, such as iPROM Private DMP, based on more direct and trusted relationships with users, since data is collected transparently and with explicit consent.

This combination not only ensures compliance with strict legal regulations such as GDPR and ePrivacy, but also creates a better user experience. When users know that their data is secure and that they have control over how it is used, they are more willing to share their data and engage with brands, boosting their engagement and loyalty.

Consent-based marketing as a foundation for trust

Consent-Based Marketing (CBM) is an approach that prioritises obtaining users’ explicit consent for processing their personal data before companies serve them personalised ads or other marketing content. In a landscape where users are increasingly concerned about the privacy of their data, this approach is essential for successful digital advertising.

This approach is an integral part of a broader privacy-based marketing strategy, where protecting personal data is as important as the functionality and performance of marketing itself. Rather than processing first-party data simply because it is accessible, companies should focus on obtaining explicit consent from users to use the data and provide additional benefits that would encourage them to share the information for purposes they are aware of. In this way, companies build trusting and sustainable relationships with their customers.

Privacy protection and “privacy by design”

Privacy should not be an afterthought or a legal obligation. Instead, it should be a fundamental part of every process. We recommend that you put privacy at the core of product, service and system development from the outset, to simplify your work in the future. This approach ensures that privacy protection is integrated into all stages of technology development and use, preventing potential breaches and ensuring user confidence.

The future of digital marketing is based on approaches that respect privacy and build trust. Users already expect personalised experiences, but they do not want companies to infringe on their privacy without their permission. Often, we are not sufficiently aware of the importance of this trust. Businesses that lawfully and transparently collect and manage their first-party data for targeted and more effective marketing comply with legal requirements and avoid the risk of large fines. At the same time, they generate data that is useful in the long term and more in-depth and accurate due to transparent collection practices and user trust.

By investing in tailored marketing strategies based on compliant solutions and building your own databases with first-party customer data, you will gradually establish a strong competitive advantage for your future at a time when major changes related to the digital environment are once again on the legislative agenda. Companies that adopt this approach will succeed in the long term and will be better positioned to compete in an increasingly complex and privacy-oriented market environment. Ready to take your data strategy to the next level? Contact me at anze.hribar@iprom.si.