2024 is shaping up to be a landmark year for e-commerce. Generative AI continues to evolve the shopping experience, Temu looms to dominate marketplace platforms, and now, Google has finally come clean and flipped the script on its cookie deprecation warnings. Yes, third-party cookies are set to stick around (for now).
Those customer crumbs digital marketers have been collecting from web browsers to create personalized online experiences, began facing their demise when regulators outlined a) their potential to violate consumer privacy, and b) Google’s monopoly of ad-management tools. Google Chrome had been planning to replace cookies with its Privacy Sandbox to keep stakeholders happy, however, UK authorities weren’t convinced Privacy Sandbox was enough to keep customer data secure.
Explaining Google’s proposed solution in a blog post, Anthony Chavez, VP of Google’s Privacy Sandbox wrote, “We are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.” He goes on to write that it’s still important for developers to have privacy-preserving alternatives.
Digital marketers and e-commerce professionals have been on tenterhooks for years awaiting the end of cookies, but now, with third-party data suddenly back on the table — who does the decision really benefit, and where to from here?
“In light of Google’s recent backtracking on deprecating third-party cookies, businesses, marketers and advertisers should be pleased,” says Tom Gibson, founder of Pilot, a digital marketing and e-commerce growth partner for retail brands. “This will ensure acquisition costs will only slightly increase in years to come, rather than a large increase in acquisition costs predicted by so many in the industry.”
From first-party data to GA4, we asked Tom to shed light on our biggest questions surrounding the future of cookies and exactly how online retailers should be collecting data now.
Style Arcade: Should e-commerce and digital marketing teams still be preparing for a cookieless future?
Tom Gibson: E-commerce and digital marketing teams should definitely be preparing for a cookieless future. Despite Google recently announcing they are back-tracking on their third-party cookie deprecating plan, I believe the time and energy marketers and advertisers have spent over the last year preparing for the inevitable cookies deprecation is not wasted.
For those brands that have put much effort behind acquisition strategies of first-party data, or spent their time looking at mixed media modeling and identity solutions—these advertisers will be ahead of the game. Cookieless is the future, and it’s better to be prepared now.
SA: Why should e-commerce retailers be focusing on acquiring first-party data?
TG: Marketers should have always been focusing on first-party data, and now more than ever, it is vital. There are a number of reasons for this.
- The more owned data brands have the better. You do not want to be over-reliant on platforms you don’t truly ‘own’ your presence on. With first-party data, brands own this data, safe-keeping any potential changes (like cookie deprecation or losing an IG handle for example).
- Having first-party data allows brands to build better customer relationships, full stop. By having more information on a customer, it allows brands to communicate in a tailored and personalized way, making customers feel like brands ‘get’ them. When you have first party data it allows you to tailor content based on people’s exact data and buying behaviors, rather than taking educated guesses based on behavioral cues from platforms.
- Ultimately, first-party data allows brands to also build brand equity and their businesses. With large volumes of first-party data, it allows brands to develop better product because you know what customers want. It allows brands to produce better content and creative, because you know so much more about your customers and their preferences.
SA: How can brands start to collect zero or first-party data purposefully?
TG: Collecting first-party data is not new, however, the need for it has increased greatly in the last few years, with much more focus on privacy-first technology. Incentivizing consumers has become a must.
There are a number of ways brands can collect first party data in a purposeful way:
1. Website pop-ups. This is the most widely used and effective way to collect first-party data. More often than not, this now has to be incentivized with a small discount for brands, however, by ‘giving’ the customer something, this incentivizes the sign-up and allows for a larger collection of data.
2. Lead Generation paid campaigns. A widely used strategy by brands now is lead generation campaigns for receiving ‘early access’ to a sale or a new season. This is a very cost-effective strategy, especially for brands that have small amounts of stock holdings, so people need to be in first to get the right size.
3. Loyalty and Account functionality. Loyalty campaigns have been around for years, and are often used to incentivize multiple purchasers, however, they are also a great way to get first-party data. The first step in a loyalty program is often to create an account, which is where brands collect first-party data.
4. Retail Spaces. Personally, I think this is very under-utilized. With foot traffic decreasing on numbers seen in the past, converting these few and far-between store visitors into at least giving some first-party data is crucial. This could be by having in-store-only promos, through to competitions.
5. On e-commerce websites, there are a number of under-utilized functionalities.
Below are a few different ways brands could think about collecting first-party data:some text
1. Back-in-stock/sign up to be notified. The perfect place to collect data which will likely turn into a customer too.
2. Online chat - always ask for email data.
3. Customer surveys
4. Reviews.
6. Create engaging gated content. Have a blog section on your website with extremely strong content that people need to have or read? Make it gated!
SA: How can brands leverage first-party data without overwhelming consumers?
TB: Personally, I believe leveraging first-party data is about not overwhelming potential customers, and actually tailoring an experience to them, utilizing first-party data. There are multiple ways to leverage first-party data, and by no means is the below exhaustive.
1. Email marketing. The most obvious place to start. Brands are often already sending out campaign emails, but often to the whole newsletter database. In order to not overwhelm consumers, brands need to be clever with their email automation/flows, as well as how they use the segmentation of customers. There are multiple ways to segment, however, at Pilot, we have found the best way to do this is by looking at purchasing behavior and engagement with emails. Segmenting out people who have recently purchased from receiving campaign emails should be a given.
2. Targeted paid campaigns. Leveraging first-party data in paid advertising is vital, these are your most engaged customers, and ought to be marketed to differently. Ensuring you exclude these customers from top-of-funnel advertising is step number 1. Alongside this, advertising should treat this audience slightly differently, by ensuring the frequency of adverts is slightly lower to not pester these highly-engaged customers, or tailoring messaging to these people.
3. Loyalty. Loyalty is still under-utilized by many brands—even a basic loyalty program ensures customers stick around. Loyalty is also often an excuse to engage with your customers more often, without feeling as though they are being overwhelmed!
SA: As for GA4, is it still relevant for retailers and first-party data collection?
TG: I believe GA4 is still very relevant for retailers. GA4 gives another view for users and gives the view of all platforms in one space. However, all data like this needs to be taken with a grain of salt. For example, the customer journey of a typical fashion brand with an AOV of $500 often ends with a conversion via email, search, or direct, as the purchasing cycle is longer and more considered. In GA4 off last-click conversion tracking, conversions are often then only attributed to these platforms - not giving credit to META or Affiliate marketing for acquiring the customer in the first place. If you were to quickly look at GA4 you would quickly cut all acquisition advertising, as “it’s not working” but this is simply not the case.
Enhanced Conversions has been introduced in the last couple of years by Google, and harnesses the power of first-party data by improving the accuracy of conversion measurement and unlocking more powerful bidding capabilities with Google Ads.
Despite GA4 still being relevant, I think there is a large amount of tech or other tools being developed and used that is invaluable if you have the budget for it. Tech such as Customer Data Platforms to ensure further customer identification, through to mixed media modeling to prove marketing effectiveness, and a bunch of other tools.
SA: What does the future of attribution look like for digital marketers?
TG: Attribution will always be an issue for marketers in my eyes. There will always be a number of ways to interpret data, whichever way you look at it. Despite it being time-consuming, I think the future is still using multiple platforms, including in-platform data from META/TikTok, etc, as well as tools such as GA4 to get a multi-source view.
I personally think attribution is about education. Educating founders, boards and SLTs on why attribution is different on every platform, and ensuring robust conversations are had. As well as everyone being on the same page as to what ‘success’ looks like.
SA: How is Pilot supporting brands through the current retail landscape, and setting them up for growth?
TG: Pilot is supporting brands by providing the most tailored experience to every brand we work with. There’s no hiding that the retail landscape is tough, but our clients are still growing. We support our clients by providing a level-head, not panicking to the detriment of margin and brand.
While the performance marketing landscape has shifted, and is consistently shifting, there remains a significant opportunity for brands to leverage digital marketing to achieve revenue growth and develop long-term market penetration.
At Pilot, we take a brand-led approach to performance marketing – utilizing key digital channels to amplify brand stories and values that create brand growth and future demand, while leveraging performance marketing tactics to drive sales.
Through proven method and approach to digital marketing, and particularly performance marketing, we know we can set brands up for growth this year and in years to come!
Image Credit: Vogue
