Home Resources A world where consumers decide: The importance of first-party data Compliance A world where consumers decide: The importance of first-party data For the past four years, the marketers and businesses that have been comfortably strategising with third-party data underpinnings have been bracing for cookie deprecation impact. Then just this week Google announced its decision to back-track on their plans to completely phase out third-party cookies and pivot to giving this decision back to the consumer instead. That is, third-party cookies will still be active on Google, however consumers will have the autonomy to determine their own data settings and how it may be collected and used. Regardless of the motive for Google’s decision, this pivot better aligns with the upcoming regulatory shifts for data protection and encourages innovative approaches in personalised marketing. As consumers take back control of their data and the prevalence of cookies inevitably crumbles, businesses will need to explore alternative data-driven strategies that focus on direct customer relationships. The not so sweet side of cookies Third-party cookies have developed a bad reputation and for good reason. By tracking users' browsing habits, third-party cookies contribute to the creation of detailed profiles, raising serious privacy concerns. The accumulation of such information allows for the targeted delivery of advertisements and content, often without users' explicit consent. Plus, cookies are prone to security risk as they are often exploited for tracking user behaviour across websites. Despite this, cookies have been the backbone of online advertising for a long time, enabling personalised ads by tracking users across websites. They are low cost and deliver extensive web analytics and user behaviour analysis. Many businesses with operations deeply rooted in the convenience of cookies and that rely on them for audience insights will be letting out a sigh of relief with the news of Google’s cookie deprecation reversal. However, this decision should not be viewed as the survival of cookies but instead a slower execution. Many consumers will indeed take the opportunity to opt-out of third-party data tracking and as a result there will still be a reduction in third-party cookie tracking over time. That’s why marketers should not become cookie complacent. It’s essential for marketers to continue their post-cookie strategy work with this new era of consumer-controlled browsing environments marking an age of first-party data dominance. The power of first-party data While third-party data cookies are collected and managed by organisations that do not directly interact with customers, first-party data offers marketers invaluable insights directly sourced from their own interactions with customers. First-party data is generated directly from the source, is highly trusted and provides greater privacy than cookies. Think of first-party data as the organic version of its cookie sibling. Not only does first-party data ensure accuracy and reliability, but it also allows for continuous optimisation of marketing strategies based on actual customer behaviours and preferences. In fact, many industry juggernauts have been embracing first-party data years prior to the announcement of Google’s cookie deprecation plans and have seen robust results that surpass what third-party cookies can offer. By utilising first-party data, businesses can create deeper connections with their audiences, providing more personalised and relevant experiences across different touchpoints. In the continuously evolving digital landscape, harnessing the potential of first-party data is crucial for driving sustainable growth and cultivating lasting customer relationships. Particularly so as consumers start to opt for withdrawal from third-party cookies. Andrea Martens, ADMA Chief Executive Officer, notes that "ADMA recognises that Google's decision to introduce a new experience in its Chrome browser giving consumers more control over their online data settings, aligns with the transparency requirements under Australia’s proposed privacy reforms. Customers expect to have control over how their data is used, and any move to provide better control should be welcomed by marketers. It is a key factor in building consumer trust in the marketing ecosystem.” Considering the future With Google’s recent announcement, it would be tempting for businesses to succumb to the ease and comfort of sticking to what they know – cookies. But marketers should forge ahead with the work they have been putting into their post-cookie work strategies. We will still likely witness the slow demise of the cookie for two main reasons – the consumer’s choice and privacy. Third-party cookies will still be active through Google however Chrome users will be able to turn them off. As privacy concerns by the public continue to grow, it is safe to assume that many will exercise this power to choose. In fact, in some international jurisdictions, "off" will be the default meaning that consumers would actively have to opt-in to receiving cookies. So, unless a consumer is particularly passionate about third-party cookie tracking, there likely wouldn’t be many opting in for this which will greatly reduce the third-party data pool. Then there are the impending privacy law reforms that make third-party cookies unattractive to use. Without going into the nitty-gritty detail, in short there may be legal and financial penalties for any legislative breach regarding the collection, use and storage of consumer data. In Australia, it’s likely businesses will soon need to be able to justify that their collection and use of consumer data is ‘fair and reasonable’ regardless of customer’s consent. And that the data collected and stored is essential for business operations i.e. not collected and stored above and beyond business needs. As the dominance of cookies likely diminishes, a shift towards privacy-centric practices is essential for establishing consumer trust and nurturing relationships. Preparing for the natural progression away from third-party data, marketers have the chance to lead with ethical and innovative approaches that prioritise consumer privacy and drive sustainable business growth. Andrea also comments, “There is already a move away from relying on third-party cookie strategies as deprecation of such has already taken place across other browsers and consumer expectations regarding how their data is used, with consent, in fair and reasonable ways, is becoming the required standard. Those who embed their marketing strategies in these more evolved fundamental principles will be ahead of the curve in the new paradigm." Adopting a balanced data strategy We are inadvertently being encouraged reduce the marketing industry’s reliance on and consumption of cookie data. Marketers should think smarter not harder and implement technologies and practices that work to derive deeper insights from first-party data to stay ahead of the curve. AI powered analytics are accessible and easy to implement into a martech stack and can help marketers transitioning away from cookies by accurately identifying patterns and trends regarding customer behaviours. Marketers can also enrich their first-party data with zero and second-party data to provide a comprehensive understanding of their customers. Zero-party data is obtained from sources such as surveys and interactive content for your customers to offer feedback and can provide enriching insights into customer needs and help to identify pain points. Whereas second-party data is acquired through partnerships with other trusted organisations and expands the scope of available data to businesses while maintaining a focus on transparency and consent – which is a fundamental component of the imminent privacy reforms. Ensuring compliance Cookie deprecation by Google may now be pivoting but broader privacy reform and stringent regulation of consumer data is prevailing. Implementing robust data governance practices is essential to ensure compliance with legislation and to build trust with customers. Marketers should prioritise transparency in data collection and usage, by clearly communicating how customer data is gathered, stored and used across the organisation. This is more important than ever before with consumers now taking back more control of their data and what they choose to share with businesses. By fostering a culture of stewardship and respect for customer preferences, businesses can establish stronger relationships with their target audiences and differentiate themselves in a competitive marketplace. Ultimately, embracing these strategies not only helps marketers’ transition away from reliance on cookies and their associated challenges but positions them to thrive in a future where privacy and personalisation go hand-in-hand. 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Filter Resources Filter Courses Capability Capability Campaign Integration Compliance Customer Experience Marketing Technology Insights Learnings Brand Development Content Format Content Format Member-only Press-release Article Blog Case Study Data Event Infographic Media Coverage Research Tool-kit Video Webinar Whitepaper Topics Topics CMO Spotlight Global Forum Global Forum 2023 Resource Compliance Resources CEO Blog Compliance Regulatory Content Copywriting Creative Data Data-driven Marketing Digital Campaigns Leadership Social Media Thought Leadership Tool-kit 08th Aug 2024 Preparing Marketers for Privacy Reform Information Sheet The proposed Privacy Act ammendments will greatly affect how businesses collect, use, and handle personal information. Marketers need to ensure that they comply with the new regulations to build customer trust and avoid potential fines and reputational damage. Article 29th Jul 2024 8 mins Understanding the ACCCs report on consumer data practices and data firms On 21 May 2024, the eighth instalment of the DPSI interim report was released and according to ACCC Deputy Chair Catriona Lowe, the report “shines a light on a relatively unknown part of the data ecosystem and examines the data products and services supplied by data firms”. Article 25th Jul 2024 8 minutes The Privacy Series: A defining change in privacy reforrm To help marketers prepare for the impact that the privacy reforms will have on the industry and our practices, we have created The Privacy Series. Each month we will deep dive into one of the key principles set to reshape the Privacy Act to understand what they mean for marketers and their businesses. Article 25th Jul 2024 6 minutes A world where consumers decide: The importance of first-party data Google's shift towards giving users control over their data marks a turning point in digital marketing. As third-party cookies fade, businesses must pivot to first-party data for personalized, compliant insights. This transition not only meets evolving privacy standards but also strengthens customer relationships through transparency and ethical data practices. Webinar 04th Jul 2024 5 mins Preparing Marketers for Privacy Reform Webinar As marketers, we’re on the front line when it comes to customer trust and as such data. We collect it, store it and use it, and our customers expect us to do so responsibly. That’s why understanding Privacy is paramount for marketers at all levels. Register now for our Preparing Marketers for Privacy Reform webinar. Article 24th May 2024 11 mins The Spam Act - what are businesses still not getting right? It's been just over 20 years since the rollout of the SPAM Act, however businesses are still not getting it right. Given the increased focus by the regulators, its paramount you brush up on your understanding of the SPAM laws before hitting send on your next marketing campaign. Load More
Tool-kit 08th Aug 2024 Preparing Marketers for Privacy Reform Information Sheet The proposed Privacy Act ammendments will greatly affect how businesses collect, use, and handle personal information. Marketers need to ensure that they comply with the new regulations to build customer trust and avoid potential fines and reputational damage.
Article 29th Jul 2024 8 mins Understanding the ACCCs report on consumer data practices and data firms On 21 May 2024, the eighth instalment of the DPSI interim report was released and according to ACCC Deputy Chair Catriona Lowe, the report “shines a light on a relatively unknown part of the data ecosystem and examines the data products and services supplied by data firms”.
Article 25th Jul 2024 8 minutes The Privacy Series: A defining change in privacy reforrm To help marketers prepare for the impact that the privacy reforms will have on the industry and our practices, we have created The Privacy Series. Each month we will deep dive into one of the key principles set to reshape the Privacy Act to understand what they mean for marketers and their businesses.
Article 25th Jul 2024 6 minutes A world where consumers decide: The importance of first-party data Google's shift towards giving users control over their data marks a turning point in digital marketing. As third-party cookies fade, businesses must pivot to first-party data for personalized, compliant insights. This transition not only meets evolving privacy standards but also strengthens customer relationships through transparency and ethical data practices.
Webinar 04th Jul 2024 5 mins Preparing Marketers for Privacy Reform Webinar As marketers, we’re on the front line when it comes to customer trust and as such data. We collect it, store it and use it, and our customers expect us to do so responsibly. That’s why understanding Privacy is paramount for marketers at all levels. Register now for our Preparing Marketers for Privacy Reform webinar.
Article 24th May 2024 11 mins The Spam Act - what are businesses still not getting right? It's been just over 20 years since the rollout of the SPAM Act, however businesses are still not getting it right. Given the increased focus by the regulators, its paramount you brush up on your understanding of the SPAM laws before hitting send on your next marketing campaign.