Consumers are getting savvier with their increased exposure to digital products and experiences. This made them more conscious about digital Privacy controls available to them. For brands, it translates to a new playbook on how they can build trust and engagement while ensuring data security. This has led to a digital privacy revolution, presenting brands with a golden opportunity to build stronger, authentic relationships with their digital audiences for the first time in the history of the Internet. The shakeup has started its impact first with the advertising world with Google’s decision to scrap third-party cookies from their Chrome browser by 2025 resulting in considerable signal loss for traditional tracking methods, leaving marketers scrambling to find new ways to reach their desired audiences.
Focus on the consumer experience
Nearly every time a consumer goes online, they start the online journey with a search. And these consumers now have an increased push towards getting personalized experiences combined with privacy-first approaches so that they need to employ less of their thinking powers while having more relevant choices apt for them.
A new paradigm in audience targeting
As brands transition into a cookie-less era, first-party and zero-party data are poised to become central to marketing strategies. These data sets, derived directly from customers’ interactions with the brand, provide a goldmine of invaluable insights that enable the creation of tailored content and customized experiences. First-party data is both relevant and of high-quality while meeting regulatory standards. This can considerably help in building long-term trust and loyalty with customers. Though collecting first-party data presents challenges, it also offers opportunities for innovative solutions.
Brands can effectively collect customer data through three main methods. First, through owned channels, gathering data directly from their websites, email lists, CRM systems, loyalty programs, and social media engagements (via contests, giveaways and other forms of prompting users to share their data with the brand). Second, through incentivized data sharing via their website or platforms, implementing surveys, quizzes, and gated content in exchange for their insights with explicit consent. Third, investing in robust CRM systems to centralize first-party data that creates richer customer profiles by tagging all user specific activities and interests done on the website. These methods convert data into actionable insights and ensure compliance with global and local data regulations.
For example, a leading e-commerce platform effectively uses first-party data with CRM by segmenting users based on their purchase history, product searches, and content views. This segmentation allows companies to target their ads to specific user groups, ensuring the right content and brand message reaches the right audience.
Balancing privacy with personalization
Data privacy has become more critical than ever in the current digital landscape. The rise in identity theft, financial fraud, and hacking incidents highlights the urgent need for robust data protection measures. According to Data Privacy Benchmark Study by CISCO, 94% of brands acknowledged that their customers will only buy from them if their data is adequately protected. Today’s brands focus more on delivering personalization through the data they collect about consumers. However, consumers are increasingly sensitive about data privacy and are more cautious than ever when sharing their personal information across digital channels. Consumer data is highly privileged, and customers are inclined to share it only with brands that offer clear benefits in return, along with the ones they trust and feel deeply connected to.
For brands, transparent communication regarding data collection and its value proposition is essential. Transparency is no longer optional but mandatory for building customer trust and cultivating long-term loyalty. Brands should clearly explain the benefits of data sharing, be open about their data collection practices, and use robust consent management platforms that give users choice and control over their data. By prioritizing these practices, brands can successfully balance privacy with personalization, fostering a trust-based relationship with their customers.
Focus on contextual advertising
The demise of third-party cookies has brought a renewed emphasis on contextual advertising. According to a report by IAB Europe, over 75% of advertisers plan to leverage contextual targeting to engage with customers. Contextual targeting focuses on analyzing the content and keywords of websites where ads will appear, allowing brands to align their ads with relevant topics and interests. This method ensures that advertisements are shown in a context that resonates best with the audience, enhancing relevance and effectiveness, unlike cookie-based targeting based on past behavior. When ads resonate with consumers’ interests, they see them as valuable additions to their content journey rather than interruptions.
Building customer trust is a priority for brands today owing to the increasing relevance of first party and zero-party data. Strong data privacy practices not only protect consumers but also enable businesses to unlock real value. By safeguarding customer information, brands can foster loyalty, enhance their reputation, and drive sustainable growth in the digital age especially without the 3P cookies.
Chaitanya A C V is the Director, Paid Social at GALE India. Views expressed are personal.