Are B2B marketers prepared for the end of third-party cookies?

For years, brands and B2B marketers have been using third-party cookies to collect massive amounts of customer data. Making it possible to track users across multiple websites and create a comprehensive profile of an individual’s online behaviour, this data is typically used to better target ads at the right people and to improve the user experience.

But this is about to change. 

Back in 2020, Google announced plans to get rid of cookies in a bid to allay users’ privacy fears. And in January this year – after several delays to give marketers more time to adjust their strategies and test out new tactics – the search engine giant’s Chrome browser finally pulled the plug. The process of eliminating third-party marketing cookies will be done over time, with a full phase-out expected in the second half of 2024.  

Chrome isn’t the first browser to do away with third-party cookies; Mozilla’s Firefox and Apple’s Safari opted to prevent user tracking by limiting the use of cookies years ago. Why all the fuss now? Well, because Chrome holds around two-thirds of the global browser market, which means that their move has very far-reaching consequences.  

And it’s safe to say that the response to the decision has been mixed. According to a recent GetApp survey, 41% of marketers believe that the demise of the cookie will hinder their ability to track the right data. Some 44% predict that the change will demand that they increase their spending by as much as 25% to deliver the same results.  

On the other end of the spectrum, some look forward to how the decision will drive the industry to be more innovative and believe that it will dramatically improve web experiences for the modern consumer.  

Perhaps one of the biggest shifts the end of third-party cookies will bring is in programmatic advertising, which made it possible for B2B marketers to automate the buying and selling of ad space in real-time. Without third-party cookies, advertisers will struggle with precise targeting because collecting and utilising data to segment customers based on their behaviour and interests becomes a whole lot harder.  

If brands and advertisers want to know their customers in a cookie-less world, they’ll need to put in extra effort to develop real relationships with them. In this scenario, customers will be given the option to opt-in to data collection, which will likely limit the amount of information marketers and advertisers can get their hands on. So, what are the alternatives? 

And that’s the way the cookie crumbles 

For B2B marketers, the end of cookies presents a challenge and an opportunity to rethink and modernise their strategies. Those that take the time to research alternatives and are quick to adjust their strategies will undoubtedly have an advantage over the competition. 

What other ways are there for B2B marketers to reach consumers? A few options are detailed below. 

First-party cookies 

In a world without third-party cookies, first-party data is vital for advertisers who are looking for less-invasive ways of collecting information about customers’ interests and purchasing patterns. While first-party data isn’t new, it has traditionally been underutilised as a marketing tool because it isn’t as easy to collect. First-party cookies are created by the website a user is visiting. They are typically used to remember user preferences and to improve the user experience.  

The phasing out of third-party cookies and the rise of first-party data tracking demands that brands, marketers and advertisers come up with ways to offer their customers enough value so that they are willing to share their data.  

I once heard someone describe third-party cookies as a nosy neighbour who peers over your fence and then tells the entire neighbourhood about what they see. If this is the case, first-party data is the neighbour who takes the time to get to know you. For consumers, the primary benefit of this approach is that customer data isn’t shared.  

Zero-party data 

Described by EY as “the next frontier in consumer strategy”, zero-party data is all about going to the source. Using the analogy above, zero-party data is the neighbour that invites you over for a cup of tea and asks you some questions about yourself so that they can get a better sense of who you are.  

Where first-party data is based on customer web activity, zero-party data is voluntarily shared by the customer via polls, quizzes, and surveys. As it is information that comes directly from the customer, zero-party data is more accurate and reliable. It also eliminates the need for marketers to make assumptions about their audience.  

But, again, if brands want to get customers to share personal information, they need to give them something in return. In fact, research from MediaMath shows that around three quarters (74%) of consumers are willing to share more information about themselves – like their demographic data, interests, and preferences – with brands if it will improve their online experiences.  

Contextual targeting 

With the demise of the third-party cookie, marketers should consider revisiting older strategies, like contextual advertising. By analysing the content on a web page, for example, advertisers can get a pretty good idea of the types of topics and themes covered on that page. They can then place pay-per-click (PPC) ads on websites that rank for the keywords or topics similar to those in their ad.  

So, a tech/electronics ad will appear on tech-oriented websites. Unlike behavioural targeting, which places ads based on user behaviour, contextual targeting focuses on where a user is browsing; with the assumption that someone reading an article about how to care for a vegetable garden will be more likely to need/want garden supplies. For customers, the primary benefit is that contextual targeting doesn’t rely on the tracking of user behaviour across different websites. 

While the third-party phase-out certainly marks the end of an era, it isn’t the end of effective and strategic marketing. It does, however, demand that advertisers and marketers get innovative and come up with alternative approaches and strategies to do the work they do. If the end of third-party cookies turns your B2B marketing efforts upside down, it might be time to bring in the professionals. Click here to reach out to us, today.