As it stands, the situation is somewhat ambiguous. We know Google is rolling out a new solution that elevates user choice, but we don’t know what this will look like, how it will work alongside cookies, and how regulatory bodies will react to the update.
What we do know is that Google’s decision shouldn’t change your path to privacy centricity… so should it really matter?
Why Nothing Has Changed
We’ve made huge progress over the last couple of years, and the direction of travel, regardless of this update, is still towards that of a privacy centric landscape.
In short, the way we’ve been used to measure, target and report using third-party cookies and other less privacy-friendly alternatives is phasing out. We’ll still have access, but they won’t be as robust a solution as they once were with increasing gaps in data, and dropping levels of confidence and accuracy. Regulatory parties such as the ICO have already expressed their concerns about the resurgence of cookies and what it means for users, and given that cookies will now be ‘opt-in’ across the board we will, sooner or later, see cookies lose relevance.
“The evolution of digital has set course for a more privacy safe, customer-centric space. This direction will not change. A more uniform set of alternatives might help our industry, but a more pluriform set tracking and targeting which continues to evolve might be a step to get there vs. one of the dominant industry players threatening a kill switch” – Michael Ossendrijver, Chief Solutions Officer
Brands will need to identify if the new ‘flavor’ of cookies aids their objectives, while continuing to invest in performance-led solutions that consider consumer privacy.
What Action Should I Take?
To echo a statement we made in an earlier article, ‘we will see a busier, more convoluted ecosystem which balances cookieless, and cookie dependent solutions’ – meaning there are a number of new, and old recommended actions to take to drive performance amidst industry fluctuations:
- Implementing Consent Mode
- Deploying Enhanced Conversions & Conversions API
- Investing in First-Party Data
- Managing the Cookie vs. Cookieless Balance
The most important thing to remember is not to look backwards. While it may no longer be mandatory to switch to first-party data, it should still remain your priority. Or you risk reducing your brand performance and falling behind your competitors…
Implementing Consent Mode
Google’s Consent Mode is more important now than ever before – serving as the cornerstone of privacy-conscious advertising strategies that provides a robust foundation for precise measurement while prioritizing user privacy throughout. It allows users to opt-in or out of sharing their information on a website, while enabling businesses to adjust tag behavior accordingly.
How this consent mode methodology will evolve over time is an unknown, but at this point in time this should not matter: demonstrating (real) use choice is essential, not only to drive regulatory compliance, but also in order to optimize measurement accuracies and to demonstrate a demonstrated, privacy-conscious approach to users(wrong word)
Deploying consent mode into your operations facilitates transparent user consent acquisition and allows you to collect conversion signals without compromising privacy. It also proves invaluable in addressing the gaps that arise when users refuse to share their data, thanks to its exceptional conversion modeling capabilities.
Deploying Enhanced Conversions & Conversions API
If you’re looking for a privacy-centric ‘alternative’ to third-party cookie tracking, then the best solutions are Google’s Enhanced Conversions and Meta’s Conversion API (CAPI).
Enhanced Conversions is a feature of Google Ads and SA360 that helps you leverage additional information about user behavior, optimizing your campaigns and unlocking powerful bidding without relying on cookies. Designed to enhance the accuracy of your conversion tracking and provide better signals to your bidding strategies, it integrates with your existing conversion tags, ensuring the secure transmission of hashed first-party conversion data from your website to Google, while prioritizing user privacy. Google then matches your hashed first-party customer data (email, phone number etc.) with signed-in Google accounts that engaged with one of your ads, resulting in better attribution of your conversions.
Learn More About Enhanced Conversions
CAPI is Meta’s first-party data tool and helps track conversions for Facebook ad campaigns – designed to create a direct connection between marketing data and the systems that help optimize ad targeting, decrease cost per result and measure outcomes across Meta technologies. CAPI allows advertisers to share data directly from their server or website CRM with Facebook Ads manager – recapturing some of the data lost from iOS14
Investing in First-Party Data
First-party data is the number one currency to work with. Regardless of whether you chose to work with or without third-party cookies, your focus should be on storing, enriching and activating your first-party data across multiple ecosystems, ensuring that targeting, tracking and measurement can be reported in a way that makes business sense.
While the primary prioritization should be building and expanding a first-party data infrastructure, there needs to be a focus on enriching the data that’s already there. Gaining deeper, and more personalized insights into what customers are thinking, doing, and engaging with outside of the direct relationship they have with any given brand. The real value will be in progressive profiling – building out customer data portfolios in incremental installments – running small, regular value exchanges to curate a consistent and up-to-date profile of users.
The evolution of first-party data will be pivotal, as it fosters trust and enhances data privacy compliance while enabling better customer understanding.
Manage the Balance
A new consideration that many brands will be facing is the choice between cookieless, or cookie dependent solutions. For many, the solution may lie in a hybrid approach which seamlessly integrates the two strategies – reaching audiences in various ways. However be mindful that with a hybrid approach comes the need for complete clarity over what works – and what doesn’t. Namely recognizing, and investing in the areas that drive true performance, and cutting those that don’t.
Additionally, working in a hybrid manner creates even more of a need for a robust and water tight reporting interface that runs across multiple channels and data touchpoints. Establishing one source of truth is critical to help fuel your ongoing growth as a business.
The renaissance area of Marketing Mix Modeling, Incrementality Testing and Experimentation is upon us, and will lead to much better pathways to optimize, plan and deliver marketing results. While more complex, results will be more durable and focused on real outcomes.
How Incubeta Can Support You
As a digital marketing powerhouse that accelerates business growth, we’re here to help you find the balance between both a cookieless, and cookie dependent ecosystem. Navigating the privacy landscape and enabling you to make the best decision to deliver performance and business growth.
Get in touch with our account leaders today and begin unleashing your full growth potential:
