GUIDE

7 Ways Marketers Can Prepare for a Cookieless Future

7 Ways Marketers Can Prepare for a Cookieless Future

Many marketers heavily rely on third-party cookies to deliver targeted ads to consumers—but not for much longer. At the end of 2024, third-party cookies will disappear for good.


If you’re not ready for third-party cookies to disappear, you’re not alone. In fact, Twilio’s 2022 State of Customer Engagement Report found that 55% of businesses don’t feel prepared for a cookieless world. But rising consumer privacy concerns and government regulations mean many browsers have to put these cookies back in the jar and close the lid tight, whether your business is ready or not.

So what actions can you take ahead of this looming deadline? In this guide, we’ll share a brief history of why third-party cookies are going away and how marketers can prepare for this impending reality.

The impending end of third-party cookies

Before you start preparing for life without third-party cookies, it’s best you understand what exactly these cookies are and why these cookies have to go away. First, let’s start by defining the term:

Third-party cookies are tracking codes placed on a website by someone other than the site owner. These collect user behavior and information across multiple websites and apps, which data aggregators then sell to advertisers who can use the information to segment audiences and hyper-personalize ads.

Since a user doesn’t directly share this information with a brand, many consumers find this hyper-targeting uncomfortable and intrusive. Think of a wedding company congratulating you on your upcoming nuptials just days after your engagement—OK, Big Brother. Let’s give the happy couple some space.

 

Aside from creeping out consumers, why exactly are third-party cookies disappearing?

 

There are 4 main reasons for the change:

1. Consumers are demanding data privacy: 65% of consumers worry their data is being collected by brands without their permission.

2. Web browsers are prioritizing user privacy: Many large web browsers have either already removed or plan to phase out third-party cookies. 

3. Government regulations are cracking down: The General Data Protection Regulation requires brands to get explicit user consent to collect cookies, and similar to the California Consumer Privacy Act, allows consumers to opt out of cookie collection at any time.

4. Companies are realizing cookies damage customer trust: Third-party cookies help brands learn a lot about customers, but there’s a fine line between customization and coming off as creepy. Instead, many brands  lean on in-house data to create personalized experiences that aren’t intrusive.

  • Push notifications

  • Email

  • SMS/MMS

  • Over-the-top channels (WhatsApp, Facebook Messenger, Google’s Business Messages, etc.) 

  • Social media

  • Chat

  • Video

Need help navigating data privacy?

 

Download Twilio Segment’s guide,

Cookies, Compliance and Customer Data:

Navigating the Future of Data Privacy.

 

Download now →

So what does this change mean for marketers?

Many marketers worry losing access to third-party data will affect their ability to create and measure the impact of highly targeted advertising and retargeting campaigns. So while Google is the last remaining large browser to deprecate cookies, and its new 2024 deadline is inching closer every day, it’s smart to adapt to a cookieless world now to optimize and refine your new strategy.

 

The trickiest part for marketers is that while users want their data protected, they also want—and even expect—personalization. So now the question becomes: how can you respect user privacy while still offering personalized experiences? Luckily, first-party data can help.

The trickiest part for marketers is that while users want their data protected, they also want—and even expect—personalization. So now the question becomes: how can you respect user privacy while still offering personalized experiences? Luckily, first-party data can help.

42%
of companies predict that the impending changes will lead to lower ROI on ad spend and decreased ability to measure campaign efficiency.

Source: Twilio’s 2022 State of Customer Engagement Report

 

First-party data is data collected and controlled by your business and tracks any interaction a consumer has with your brand—from browsing your site to opening and clicking on your latest marketing email. Every time a user interacts with your brand, they send you very rich data about what they like and don’t like. Your brand just needs to collect that data and listen to what your users tell you to build exceptional, personalized experiences.

The Differences Between Third- and First-Party Data

Third-Party Data

First-Party Data

How it's acquired:

How it's acquired:

Third-Party Data

Data aggregators combine data sets and user browsing history across multiple sources and sites

First-Party Data

Your brand collects user activity on your site with consumer consent

Column A

Who owns it:

Third-Party Data

Data aggregators sell the data to other businesses to use

First-Party Data

Your business exclusively collects  and uses the data

Column A

What is its purpose:

Third-Party Data

To help businesses hyper-personalize ad campaigns

First-Party Data

To learn what your users like and build better customer experiences

Column A

Examples:

Third-Party Data

  • User demographics

  • User behaviors across websites

First-Party Data

  • User behaviors on your website or app

  • Message engagement data (clicks, opens, etc.) 

  • User purchase history

7 steps to prepare for a cookieless world

It’s never too early to start building and testing new marketing strategies. That way, when cookies vanish for good, your brand is already set up for success. Here are a few ways you can ease off third-party cookies usage and adopt more consumer-privacy-minded practices:

1

Lean on first-party data

Store-bought cookies never taste as good as homemade—and it’s the same with data. Your business exclusively collects and controls first-party data, which means you can ensure the information is accurate, complete, collected with explicit consent, and uniquely yours. Plus, it only gets better the more a user interacts with your brand. 

 

To collect this data from your users, you can track how they interact with your brand via various channels, including:

  1. Your website or mobile app

  2. Social media

  3. Customer service

  4. Promotional communications (email, SMS, push notifications, etc.)

  5. Surveys and polls

  6. Product reviews

Why business leaders are focused on first-party data:

54%

The data is higher quality

43%

It provides better privacy for consumers

39%

It's easier to manage it because they own it
Source: Twilio State of Personalization Report

Using a customer data platform (CDP), your business can collect and store this information, so you can use it to learn more about your customers, as well as their interests and preferences. The CDP can ensure this info flows directly into your marketing systems to help you build better-customized experiences across all your marketing channels.

85%
of consumers feel companies should primarily use first-party data when creating personalized services

Source: Twilio’s 2022 State of Customer Engagement Report

 

Looking for more on first-party data?

 

Check out our new guide,

The Fundamentals of First-Party Data

2

Use transparency to win customer trust

But before you can use first-party data, you have to collect it. And before you can collect it, you have to earn your customers’ trust and give them a compelling reason why they should share personal details with your brand. 


In this regard, transparency can go a long way because if your customers know when and why you collect their data, they might be more willing to share it. For example, if filling out a brief survey on their interests allows a user to receive more targeted offers and content from your brand, they might jump at the opportunity. This value exchange—whether for more personalized content, a discount code, exclusive access to ebooks or reports, or loyalty program membership—allows your users to decide whether they want to share their information with your brand.

But before you can use first-party data, you have to collect it. And before you can collect it, you have to earn your customers’ trust and give them a compelling reason why they should share personal details with your brand. 


In this regard, transparency can go a long way because if your customers know when and why you collect their data, they might be more willing to share it. For example, if filling out a brief survey on their interests allows a user to receive more targeted offers and content from your brand, they might jump at the opportunity. This value exchange—whether for more personalized content, a discount code, exclusive access to ebooks or reports, or loyalty program membership—allows your users to decide whether they want to share their information with your brand.

60% of consumers say trustworthiness and transparency are the most important traits of a brand, dominating all other traits, up from 55% in 2021

60%

2022

55%

2021
3

Centralize your data

Next, you need to find a way to store your first-party data and put it to use. Here’s where a CDP can shine. 

 

A CDP gives your business a single centralized customer database that contains data on all their touchpoints and interactions with your product or service. That data can then build customer profiles and audience segments to create personalized one-to-one or one-to-many campaigns. But here are a few other ways marketers can benefits from customer data platforms:

 

  • Single view of the customer: Unifies all your customer’s touchpoints across all platforms and channels, so your team can have a holistic view of the customer journey.

  • Trait and audience building: Allows you to build audiences and create real-time campaigns, without relying on other teams.

  • Activation: Pushes custom audiences to over 300+ marketing tools to execute personalized, real-time campaigns.

With a CDP, you can ensure your team uses the most up-to-date data you have on your customers. These insights help you identify and act on growth opportunities, experiment with your messaging, power your personalization efforts, and more.

With a CDP, you can ensure your team uses the most up-to-date data you have on your customers. These insights help you identify and act on growth opportunities, experiment with your messaging, power your personalization efforts, and more.

40%
of companies feel that getting accurate customer data for personalization is a challenge

Source: The State of Personalization 2022

 
4

Build personalized customer experiences

Consumers are hit with a flurry of marketing messages vying for their attention everyday—messages from your competitors, no doubt. So what does it take to stand out? Personalization. 

 

In fact, 83% of consumers report they’re more loyal to companies that offer them a personalized experience. But while many companies claim to meet and exceed customers’ personalization expectations, only 48% of consumers agreed. 

 

With first-party data, your business can develop a deep understanding of your customers and use that information to power personalized communications on their preferred channels.

 

Have a customer who keeps browsing your sneaker selection?

  • Send them an email with the styles they recently viewed and a coupon code for free shipping. 
 

Have a user that typically logs onto your app on Thursdays?

  • Send them a push notification enticing them to come back. 
 

Have a lead that keeps visiting your product page but doesn’t request a demo?

  • Send them a case study from a customer in their industry.
 

Your brand can even use first-party data to group similar users and create audience segments. This can help scale your marketing campaigns and customer communications while still ensuring you send targeted content and messages to your users. A CDP, like Twilio Segment, can help you build real-time audiences. With “cart abandoners” or “users who haven’t purchased in 30 days,” you can send the right users the right message at the right time and win their business.

 

See the latest global trends in personalization, first-party data, and consumer loyalty in Twilio Segment’s The State of Personalization 2022.


Read now →


“

“If your customers are giving you all sorts of information by what they click on, what they don’t click on, what they scroll through, what they scroll past, what they buy, what they return, etc., and you’re not using that information to make smarter decisions for customers, then you are at a competitive disadvantage.”
JEFF LAWSON, CEO
5

Leverage lookalike audiences

No one knows your customers—and potential customers—quite like you do. And while first-party data can help you retarget existing customers, it can also help you find and attract new customers as well. 


Your business can identify and share a hashed list of your highest-value customers to create “look-alike” and “act-alike” audiences on major advertising platforms, like Google, Facebook, Snapchat, and Pinterest. These platforms then identify and serve ads to users with similar interests and characteristics as your existing customers to help you reliably and accurately identify potential customers and expand your business. In other words, you can keep your customers’ privacy safe while still expanding your brand’s reach and finding new, qualified users.

6

Find new ways to track ad performance

Another way your business can help protect user privacy is by doing away with client-side tracking pixels. Usually when a user sees your ad on another website, their browser, app, or device downloads a third-party cookie and shares their online behavior directly with the ad platform. If the user goes on to convert on your site after viewing your ad, the ad platform will attribute this conversion to the ad, so your business can track the performance of your campaigns. Unfortunately, most consumers don’t realize businesses track their data this way, and those who do, see it as an invasion of privacy. 


Instead, many businesses are switching to server-side tracking, which relies on first-party data and only sends user data to your business’ server, not a third party. Your company can then choose to share that data with whichever ad platforms you use to tie conversions to your ad campaigns—ensuring you can still measure the ROI of your campaigns while still respecting consumers’ privacy. And while server-side tracking requires a bit more technical planning, it provides a privacy-conscious alternative to using a client-side pixel.

7

Increase your data agility

Lastly, the only downside of first-party data is that there’s a lot of it. Sorting through all that data, pulling out meaningful insights, and taking action can be time-consuming and labor-intensive—especially if your data lives in various systems. 

 

Luckily, with the right CDP, your business can centralize and democratize your data, helping to remove your team’s reliance on engineering and data science departments to pull and process data. This data autonomy allows your team to take immediate action on opportunities and build amazing experiences for your customers in real time.

Ready to go cookieless?

CHAPTER 2
2

While you now have an extra year to prepare for a cookieless future, don’t delay incorporating some or all of these tips into your marketing and advertising strategies today. First-party data takes time to collect, develop, and incorporate into your customer communications, but when used effectively, it can create personalized experiences that drive customer loyalty, conversions, and retention.

 

Ready to make the most out of your customer data while respecting consumer privacy? Speak with a member of our team to learn more about how Twilio can help you take control of your first-party data and build richer, more personalized experiences for your customers.

 

While the end of third-party cookies is certainly shaking things up for marketers, there’s no reason to worry. There’s plenty your business can do today to prepare for 2024. We know you’ll figure it out—after all, you’re one smart cookie!