When the Cookie Crumbles, Where Does That Leave Third-Party Data?

Google will block third-party data collection in Chrome by the end of 2024. If your marketing relies on this, that means you have a year to figure out customer data practices (but you’re not alone!). 

Our research study shows that about half of marketers worry about their organization’s ability to succeed without third-party data. At the same time, nearly three in four marketers believe that company-owned data about customers and prospects is more valuable than ever. It’s clear that the road ahead is paved with first-party data. 

Most of us know we can’t rely on third-party data much longer, but analyzing first-party data to turn insights into action can be challenging. Our research suggests that marketers need more data skills to make the transition away from third-party cookies — about one in three marketers say their organizations don’t have the skills to use customer data effectively.

Now’s the time to take steps toward a first-party data future if you haven’t already because you need to be strategic about data practices and your transition plan.

Implications for Reliant Marketers

Moving from third-party (paid) data to first-party (owned) data is a smart strategy for marketing professionals. Here are five implications you’ll see when the switch happens.

1. You won’t be able to track customers across the internet. Without third-party cookies, you won’t have the same insights about your customers’ movements and behaviors, including purchasing habits, interests and demographics. Retargeting, frequency capping and attribution are all strategies that will be impacted by the change. 
2. Tech stacks will become more complex. Gathering your own data means investing in technologies, data-related tasks and skilled employees. Because there will be more data to manage, you’ll need to spend more time keeping it secure and organized and deriving actionable insights. 
3. Transparency, privacy and consent will lead to customer insights. Consumers are leading data privacy policy changes by asking for more protection and transparency. Privacy legislation is becoming more commonplace, and there’s a lot that’s outside of marketers’ control. Customers today expect a lot from companies — they want to know what you stand for and if they share your values. 
4. Data-forward companies are better positioned to sell. Companies prioritizing first-party data have a competitive advantage when it comes time to attract customers. A company that knows its customers well is a better investment. 
5. There are more opportunities for innovation. Marketers are known for being creative, and with data use evolving, it’s just one more opportunity to capitalize on your innovative mindset.

Despite the implications above, there’s still a lot we don’t know and third-party data going away. Accepting uncertainty is part of moving forward. Some marketers believe Google’s third-party cookie phase-out is driven by profits from shifting advertisers to Google’s first-party cookies options rather than a desire to preserve consumer privacy. One thing you can control? The first-party data you collect.

Transitioning From Third-Party to First-Party

Prioritizing first-party data can help companies become more resilient, agile and strategic about marketing. But you need a roadmap with small, manageable steps to get there. Start with an audit to get a holistic view of your data practices, and answer these questions: 

What customer data do you already gather? 

Over two-thirds of marketers gather basic contact information, such as name, email, phone number and address. Another one in two gathers purchase frequency, purchase history and personal information, such as interests, household income and age. We recommend you only ask your customers what you need and nothing more. For example, if somebody downloads a case study from your website, don’t ask them for their address and phone number. 

Where do you store customer data? 

Our research shows that 70% of marketers store customer data in more than one database (for example, CRM, database software and spreadsheets). Of those who use CRMs, 84% use a single CRM that manages customer data across departments. Keeping your data in one place is best because it reduces redundancies, extra costs and lessens security risks. 

While most are happy with their CRM, the training required to use the system can be frustrating because data management and analysis require skill. Although it can be daunting for your team to take this on, it doesn’t have to be. Take it slow, and start by focusing on the basics of CRM and build from there. You can expand once you become more comfortable with the process. This incremental approach will help you prevent getting overwhelmed, make sure your CRM goals are met and ensure your customers have a positive experience.

Who has access to it? 

Our research shows that about 40% of marketers analyze customer data or use it for their work. About four in five make decisions about data collection. While data can be incredibly valuable in planning marketing campaigns and initiatives, it’s important to keep access on a need-to-know basis. 

Just as every business has important assets and investments, customer data privacy is as essential to any company as money in the bank. Our customers provide us with sensitive information, trusting us not only with their data but also their loyalty. That’s why it’s so important to ensure it’s handled carefully and treat this responsibility with respect. The more people are involved, the higher the risk of an accident or leakage. Keeping customer data secure requires time and attention, but it’ll allow you to provide a higher standard of service to your customers.

How long do you keep customer data? 

Marketers, on average, keep customer data for nine months. In our experience, nine-month-old data is likely already outdated. People move, change jobs and switch their buying habits at a more common rate. 

We know keeping up with customer data can be challenging. That’s why it’s important to have universal formatting for your data that’s used company-wide. Take steps to verify new information, whether it’s by sending a verification email or using a third-party service. Keeping tabs on your data needs to be part of your regular workflow, not just something you do once or twice a year. This will help ensure any incoming data is entered and implemented correctly throughout your system. Plus, you can rest easy knowing your customer data is always up to date.

More Factors to Consider

Your marketing practices, staff and tech stack all help determine what the transition away from third-party data will look like. 

Take stock of how much your marketing initiatives rely on third-party data. Strategies like programmatic media buying; SEO and keyword research; targeting and retargeting ads; audience segmentation; and list buying rely on third-party data. If the bulk of what you do comes from data you pay for, you’re at risk. 

Ask yourself: What internal resources do you have, and will they be assets during the transition? 

If you have team members with data analysis skills or cybersecurity experience, you may be in a better position. Consider investing in data skills education and training for staff so they can learn new ways of understanding customers. 

Your tech stack is also an important factor when considering how well you’ll adapt to the transition. If it’s a well-oiled machine where data is organized, secure and accessible to the right people, you’ll have an easier time with the change. 

To keep your database clean and healthy, you need an accurate understanding of your data policies. Tell customers up front what data is needed and how it‘ll be used. This will help streamline the process and create a more organized database in the long run.

The Future of Marketing

Imagine a future with less generic data, more meaningful audience profiles and trust-based customer relationships. That’s what’s lying on the other side of the transition. You don’t need third-party data to provide engaging, educational or relevant customer experiences. What’s most important is to start the transition now and invest in technologies that make it easier to collect, store, analyze and use your data.

To learn more about the research study, check out our entire Executive Summary. And to explore the data yourself, check it out here.

Privacy Laws Are Affecting Third-Party Data (and Your Marketing)

Do you trust organizations with your personal data? How do you feel about them tracking your activity across the internet via third-party cookies? 

For decades, marketers have relied on the power of third-party data to gain insights into their customers. Without it, many of today’s most common marketing strategies would look completely different or even become obsolete. Some examples include:  

• Programmatic advertising
• SEO and keyword research
• Social media advertising
• Targeting and retargeting ads
• Audience building and segmentation

The shift from third-party data (purchased) to first-party data (business-owned) is happening whether you like it or not. This change comes with novel privacy and security challenges that, if not met head-on, will have dire consequences. In Q3 of 2022, approximately 15 million data records were exposed worldwide due to breaches.  

While 60 percent of global consumers think companies collecting their personal data is fine if that means there will be a better user experience, 90 percent worry their data is not secure. Consumers are right to be concerned — data breaches are common and can have serious side effects, from spam calls and texts to proactively replacing a credit or debit card. In a worst-case scenario, these breaches can lead to identity theft. 

When data breaches occur, they undermine consumer trust and confidence and can also affect business performance. For publicly traded companies, share prices fall an average of 3.5 percent after a breach, and share prices drop an average 15.6 percent three years after a breach. 

We recently conducted a research study to determine how professionals view these changes and how they currently gather and use data. In today’s post, we’ll discuss strategies for protecting yourself from liability and data storage and privacy best practices.

Adapting to New Changes on the Way

Cybersecurity issues are no longer isolated incidents. One recent study found that 53 percent of mid- to large-sized companies have experienced a security breach. Since only 19 percent of respondents said they have complete knowledge of where their data is stored, data storage contributes to security breaches. 

But a company’s size does not protect them from breaches. Small businesses are just as vulnerable as larger ones, especially ransomware and stolen credentials attacks. However, unlike their larger counterparts, it’s common for a data breach to put a small company out of business within a few months due to reputation damage, related costs afterward and diverting resources to resolve the issue. 

As data breaches have become more common and sophisticated in recent years, cybersecurity has become more than just an IT issue. One Gartner study found that 88 percent of boards view it as a business issue that many stakeholders need to address. Consumers are chiming in, too. More than 50 percent believe companies should be forced to adopt mandatory data protection controls after a data breach. 

Consumers, employees and business owners are paying more attention to data privacy and security. In 2022, 35 states and the District of Columbia introduced over 200 consumer privacy bills. And five states — California, Colorado, Connecticut, Virginia, and Utah — have enacted comprehensive consumer privacy protections that have transformed the consumer data landscape.

How Marketers Feel About Third-Party Data and Privacy Laws

One in two marketers strongly agrees that data privacy laws make it harder for them to do their jobs. At the same time, 64 percent worry about the privacy of their personal data. We can appreciate enhanced privacy and security protections for our personal data while feeling frustrated in our roles as marketers. 

Add third-party cookies going away in the next few years, and consumer data is more complicated than ever. How resilient you are depends on how your organization treats data and your plan for the future. 

After conducting the research, three distinct attitudinal segments emerged: Independent, Data-Reliant and Concerned respondents. 

If you’re like the Independent marketers from our research, you’re using very little third-party data and feel confident about the quality of your customer data and how you’re managing it. Often, these marketers work for small businesses that know their customers well. As new technology like AI and cloud-based computing becomes universal, you can adopt technology strategically while keeping data privacy best practices in mind.

Data-Reliant marketers lead with strategy and value data. They also rely on third-party data to craft personalized marketing messages to their customers. Because they use third-party data for marketing initiatives, they’re more worried about the future.  

Most marketers we surveyed were in the Concerned segment. These marketers worry about their personal data and think using third-party data is risky. They think third-party data used to target advertisements makes them look like spammers. They know third-party data is going away and believe the best lists are developed in-house. If this sounds like you, put your data practices in place now, not when cookies go away. Start gathering your data today safely and securely.

Protecting Yourself From Liability

Our research shows that 70 percent of marketers use at least two data storage solutions to house data, putting them at risk for data breaches. When your data comes from multiple sources and you store it in different databases, it makes you more vulnerable to attacks. Knowing where your data is and who has access to it at any given time is essential to keeping it safe. Fortunately, following data storage and privacy best practices can eliminate your liability burden. 

1. Data is only as good as the person who enters it. Make sure you have clear guidelines when you ask a customer to enter their data into a form or when you do data entry for your business. 
2. Data can be stored for as long as the consumer allows it. While you might want to keep everything you’ve collected, data can go bad (like milk). When thinking about storing your data, consider giving your customers the ability to request their data be deleted from your database and identifying your business data retention plan.
3. Data should be cleaned constantly. That might seem daunting, but if you are using it on a consistent basis, you want to make sure it’s kept in order. Reflect this in your data retention plan and communicate it to your whole team.
4. Store your data securely. If it’s in an excel file, password protect it. If it’s through a CRM, make sure you know the user policies so you give the right permissions to the right people. If possible, make sure to require two-factor authentication for all users.

As Data Privacy Changes, Change With It

Most marketers know how to duck, bob, and weave when industry changes are out of their control. But we’re all facing dramatic changes in third-party data privacy, security and liability that require a different kind of agility. The more prepared and strategic you are, the easier it is to do your job effectively and efficiently.

Talk with other business owners on how they’re using data. Don’t work through this alone. Use your network to find out how others are dealing with the upcoming changes.

To learn more about the research study, check out our entire Executive Summary. And to explore the data yourself, check it out here.

When Will Your Consumer Data Expire?

These days, following best practices for consumer data is like chasing a moving target. With data privacy laws constantly evolving and consumer data platforms setting individual data retention policies, it’s not easy to know when to use your data. 

Google Analytics, the gold standard for gathering consumer data from websites, has a data retention policy that outlines how long consumer data will be kept before it’s wiped from servers:  

While the retention period and user-activity reset controls cover event and user-level data stored by Google Analytics, certain user-keyed data (such as age, gender, interests) is by default deleted by Google Analytics after six months of inactivity for a given user for a Universal Analytics property or after two months for a Google Analytics 4 property.

The takeaway? The clock is ticking on using your consumer data. 

Even if these changes aren’t taking place, how would you use the information you’ve collected? If you know a customer visited your website twice six months ago and converted once, for example, is that still meaningful information?

We recently conducted a research study to determine how professionals view these changes and how they currently gather and use data. Not only do marketers need to know about platforms’ data retention policies, but they also need to know if and when data is useful for their marketing and sales initiatives. Consumer data is powerful when it’s used right, and timing is everything.

We’ve already shared why our research suggests first-party data is the future and how you can upgrade your tech stack. In today’s blog, we’ll help you get the most out of your consumer data before it’s no longer useful (or disappears from your Google Analytics account).

Marketers Weigh in on Expiration Dates

Our research shows the average marketer believes consumer data is good for nine months. Nearly one in five say six months is when this data expires, and one in three marketers keep data from 1-3 years before they think it needs a refresh. 

If you’re in the group that thinks you can use consumer data for 1-3 years, it’s important to consider your sales cycle. Sales cycles can take weeks to a year or more depending on the industry, product, service and audience. Real-time, responsive data is essential to understanding what’s happening at every stage of the cycle and making informed decisions. Having a strategic mindset is key, especially with your consumer data. 

Consider the average length of a marketing campaign. How effective can your marketing be if you use data from nine months ago to inform your campaign strategy?

Challenges arise and become harder to overcome without data that integrates into your sales and marketing initiatives. If this sounds familiar, know you’re not alone.  

About one in three marketers face data-related challenges, including having the skills necessary to use data effectively and working with multiple siloed data sources. Fortunately, solving data challenges can be simple if you know where to gather data, what to gather, and when to use data.

When to Refresh Consumer Data

Knowing how long your data is good for all depends on your data source. 

Social media can be a great source of first-party data for marketers transitioning away from paid third-party options. Shares, likes and comments can give you deep insights into your audience, but refreshing social media data every nine months isn’t useful because it’s one of the fastest-moving data targets. Instead, aim to refresh your data every 30-60 days. By engaging your audience with whitepapers and contests, you can entice them to fill out a form so you can collect contact details. 

Email is another source of reliable data that you should utilize during the transition away from third-party data. Knowing open rates, click-through rates, unsubscribe rates, and other email engagement data points can help you understand your audience better. We recommend hitting your list once a month. 

Additionally, make sure you are segmenting your list as well. If you have inactive contacts, move them to a re-engagement campaign. If they aren’t engaged, they could be hurting your overall deliverability.

Pulling data from your website is a must to understand consumers’ journeys in a post-third-party data world. A CDP platform allows you to store information such as names, addresses and demographics, plus behavioral data like purchase history and unique page visits — all of which can inform sales and marketing strategies. Once your tech stack is working seamlessly, revisit this data at least every quarter (if not more).

You can utilize many different consumer data sources, but the data retention strategy varies. Use consumer engagement frequency to gauge how often you should look at the data yourself. For example, most customers use social media daily but may only visit your website once or twice a month.

Best Practices for Using and Storing Consumer Data

It’s often a challenge to make meaning of all this data and synthesize it into one hub. Our research shows that to help, about two in three marketers use a CRM, database software or spreadsheets to store and organize customer data. 

If you have 100 to 200 contacts, doing this manually might be time-consuming, but it’s also low-cost. On the other hand, a high quantity of data leaves room for human error, which could make the data unusable. When you have more contacts, you may consider a service like Zapier or all-in-one solutions like HubSpot to sync data back and forth. This also takes out the risk of human error.

Mastering First-Party Data

Transitioning from dependence on third-party data to creating your own first-party data takes time. Be patient with this process, and remember that taking small steps over time is better than doing nothing or trying one giant leap when it’s too late. 

As we’ve mentioned before, it’s common for marketers to lack data skills or have knowledge gaps. Consider hiring a data specialist to make the transition easier and keep your marketing and sales departments agile during changing times. 

 To learn more about the research study, check out our entire Executive Summary. And to explore the data yourself, check it out here.

Change Is on the Horizon

Marketing as we know it is in the midst of massive change. Legislation like the General Data Protection Regulation in Europe and California Consumer Privacy Act have put consumer privacy directly into the general conversation. But there’s a bigger change looming on the horizon — the so-called death of the third-party cookie. And marketers are worried. Recent research found that 69% of marketers believe the end of the third-party cookie will be a bigger deal than privacy legislation. And 96% of marketers say first-party data will be vital for moving forward — and we agree!

We recently conducted a research study to find out how professionals view these changes and how they currently gather and use data. In today’s blog, we’ll talk about what these changes mean for marketers, the future of targeted ads, and how to kick-start the process of making your consumer relationship management (CRM) work for you.

Changing Times, Changing Targeted Ads

As access to third-party data continues to change, marketing will have to change with it. Learning about consumers, targeted ads, and measuring performance will be much more difficult without the third-party cookie. So let’s look at how marketing’s role will change.

Identifying prospects: You’ll no longer be able to identify prospects by devices or user profiles. Instead, you’ll need to identify individuals and gather information about them with explicit consent and through first-party data.

Engaging prospects: When a prospect visits a website and clicks on a product, third-party cookies will no longer be able to track that prospect to another website and show an ad for that product or a related one. As a result, you will need to gather your own data from your website, customer surveys, and email lists, which you can then use to plan ad campaigns.

Closing sales: Recent research shows that 80% of consumers are more likely to buy from a brand that offers a personalized experience. Third-party cookies have limitations with customer insights. Close sales by using first-party data to understand your customers on a deeper level.

Cost per ad: Some marketing experts predict that the return on investment (ROI) from ad spend will drop 30% once third-party cookies go away.

All this amounts to a lot of pressure on business marketers to get it right.

Different Organizations, Different Ways to Measuring Success

Our research found that organizations measure marketing success in various ways.

• 56% of marketers are evaluated by their marketing activities’ ROI
• 45% by the cost per acquisition
• 45% by the conversion rate of leads
• 35% by the conversion rate of activities

Today, the success of paid media depends on the third-party cookie. As we mentioned in our previous blog, tracking click-to-purchase rates through third-party cookie-targeted ads will no longer be possible. As a result, marketers need to rethink KPIs — specifically, how they measure them.

Instead of tracking conversions from retargeting ads, marketers can ensure they’re using Google Analytics to track their website data and train staff to monitor, analyze, and make recommendations based on those results.

Soon, acquiring customers through Facebook targeted ads will be a thing of the past. Marketers need to adjust their customer acquisition funnels and be change leaders in their organizations to stay agile. It all starts with upgrading your data stack. The steps to measure customer acquisition will also change. Consider nurturing customers through engaging content like organic social posts or blogs.

How to Use Your CRM (and Use it Well)

There are many options for managing first-party data, including Excel spreadsheets, database software, and dedicated CRM software. Our research shows that many marketers use all of the above methods, but CRMs lead the way with 68% of respondents saying that’s what their organizations use. Additionally, 72% say they use a CRM often to do their jobs. However, many respondents say their CRM isn’t as effective as it could be. Check out these insights:

• 50% say data input takes too much time and effort
• 42% need more training to get the most out of their CRM
• 33% would get more out of their CRM if they had on-staff experts

Although it seems daunting, investing the time and training into these areas is worth the payoff. If you are starting out with little to no data, spend the time mapping out a plan. Ask yourself questions like: What data do you want? How is it going to be formatted? Where is it going to be stored? What other departments need it?

If you have a good amount of data, start off with an audit to see what you have, where it’s being used, and where it’s being stored. Then make a plan on how your company should use that data and the changes that need to be made to get there.

The takeaway here is that your CRM needs to do the heavy lifting for your organization. It should pull data from all departments, not just sales and marketing. Human resources, operations, finance, IT, and additional departments also have a stake in the game.

How Attitudinal Segments Collect Data

After conducting the research, three distinct attitudinal segments emerged: Independent, Data-Reliant and Concerned respondents.

Independent respondents aren’t too worried about new policy legislation because their organization doesn’t use much third-party data. They already have systems to gather first-party data — like a CRM — and know how to use it.

Data-Reliant respondents believe data is the key to effective marketing and helps marketers weather change and take advantage of opportunities. Despite thinking it’s perfectly ethical to use third-party data, this group worries about their organization’s chance of success if it goes away.

Concerned respondents think it’s risky to use third-party data and believe the best prospect lists are developed in-house. They’re also concerned about the privacy of their data.

Both Data-Reliant and Concerned respondents are more likely than Independent marketers to purchase data from other companies about their customers. Data-Reliant are more likely than Concerned marketers to say their organizations collect basic information about their customers.

You can collect a lot of customer data, including call notes, in-person visits to brick-and-mortar locations, and social media engagement. Unfortunately, less than half of respondents say their organizations collect any of the above data. 68% say their organizations collect basic customer information like names and emails. Although this will only get you so far, all marketers need to increase their data collection in order to succeed in the future. And they need to know how to use it.

Most of our respondents use data to identify customers for sales and marketing purposes. Those tasks will be more successful if they have high quality, relevant data.

Data will go bad and will be entered incorrectly. Human error is real. First-party data is reliant on human interaction at some point. Since you can’t monitor everything, set aside time to go through your data. Consider investing in services like Melissa.com or Kickbox to help verify customer data and keep it current.

Encourage your entire organization to think about what customer data would be valuable to them, and start gathering it. Consider the following buckets:

• Identifying information: name, email address, mailing address
• Demographic information: education level, gender, marital status, home ownership status
• Quantitative data: purchase history, website visits, social media engagement
• Qualitative data: information gathered from surveys or interviews, such as customer satisfaction, customer feedback and reasons for purchasing

Lead With First-Party Data

Even though third-party cookies will be on Google Chrome until 2024, start preparing for the change now by putting a better data management process together.

Start by making sure that all data is filled out correctly and in the right format. Bad data can be just as bad as having no data. For example, if you send an email to a user and personalize it with the wrong name, it’s less likely to be opened or it can be deleted altogether. This can cause you to miss the sale and even the customer. Next, connect as many of your systems together as you can, and audit and verify your data at least twice a year.

By using a company-wide CRM or implementing a customer data platform (CDP) that fits your industry, you can break those silos and start working together. This takes all data in, matches it with the appropriate user and then sends it to the different platforms. CDPs are also bidirectional, so if something changes in one place, it will change everywhere else.

To learn more about the research study, check out our entire executive summary. And to explore the data yourself, check it out here. 

What Will Happen to Targeted Ads Without Third-Party Cookies?

If you’re like a lot of marketers, your marketing strategy relies heavily on targeted ads. But have you thought about how your strategy will change when new privacy laws go into effect? If you’re in an organization that relies heavily on third-party data, it’s essential that you create systems in place to gather, analyze and store your own first-party data. Your future success depends on it.

We recently conducted a research study to find out how professionals view these changes and how they currently gather and use data. In today’s post, we’ll explore how respondents use targeted ads and what changes need to be made when third-party cookies are phased out of Chrome.

A Changing Data Landscape

Imagine you’re about to enter a new market, and you’re strategizing an ad campaign for the product launch. You can’t use third-party data to target ads. No Google keyword planner. No social media. You can only use your own first-party data stack to execute the campaign (like CRM, Excel spreadsheets, JSON files, etc.). Do you think you’d be able to have a successful launch?

If you don’t think so, you aren’t alone. Our research found that 80% of business marketers say their organizations’ target media buys are based on data parameters that organizations like Google and Facebook set. That means many marketers like you have yet to make the switch to first-party data.

Whether you realize it yet or not, the nuts and bolts of your marketing — from identifying and engaging prospects to closing a sale — will look different without third-party data. As a result, you’ll need to be more intentional with your segmentation. Instead of being limited by what the platform offers, the data you have in your own system will limit how you can market to prospective customers. Although there may still be targeting options on these platforms, a lot more is going to depend on the data you’ve collected yourself.

Successful targeted ads are relevant ads, meaning the right ad goes to the right audience at the right time. Today you can thank the third-party cookie for that. Without third-party data, you might show customers an ad for a product they’ve already purchased. If you don’t have good data, your ads can go to people who don’t want your products or services.

Without the relevant data to inform these decisions, advertising goes back to what it was like decades ago — a shot in the dark. When you lack the data to pinpoint who to target, you waste time, resources, and money. Because you won’t be able to use data from third-party cookies much longer, what data can you use?

The answer is capturing more data outside of the normal first/last name, email, and phone number. We know it can be daunting, but it doesn’t have to be. Getting someone’s first name is the literal first step. That information allows you to personalize emails directly to your prospective customers. That alone can increase your open rates by as much as 26% while decreasing bounce rates.

Next, devise a plan to get the customer to open the email, click on it, and fill out another form with an additional one to two more questions. Rinse and repeat. You are now on your way to collecting first-party data.

The State of Marketing Post Third-Party Data Collection

McKinsey’s data shows that programmatic advertising, which relies on third-party data, accounted for 78.4% of the US advertising market in 2020. If it was paid media, you can bet third-party data was involved. Here are some ways it’s currently affecting marketing activities within a typical digital media strategy:

Email marketing: Many marketers buy third-party lists for email campaigns.
Search engine optimization (SEO): Third-party metrics guide ranking potential.
Digital media buying: Advertisers buy digital ad space to target audiences with third-party data.

Our research shows that many business marketers’ daily activities involved third-party data in 2021:

• Two in three used social media marketing
• Two in three used email marketing
• Over one in two used online advertising
• Over one in two used SEO
• About one in three used programmatic media buying

Especially when these types of marketing activities involve targeted ads, third-party data is most likely involved. When websites store customers’ cookies, personal data, such as age, location, interests, and purchasing habits, become the ingredients for a targeted ad. These visitor profiles can then be used to send retargeted ads to past website visitors or even look-alike web profiles.

Frequency capping, limiting a consumer’s exposure to a single ad to prevent overexposure, relies on third-party data. Attribution also relies on third-party data to monitor ad performance across digital locations, tracking click-to-purchase rates (conversions).

Both will be gone with third-party data legislation.

The good news is that your first-party cookies are safe. You can continue to log your organization’s website visitor data, including sessions, usernames, passwords, products in the shopping cart, etc. And you can use your own data to create targeted ads going forward.

Use Your Own First-Party Data for Targeted Ads

Ask yourself: How do you feel about these looming data changes?

After conducting the research, three distinct attitudinal segments emerged: Independent, Data-Reliant and Concerned respondents. If your organization has a robust data stack and rarely uses third-party data, you may be like the Independent respondents. These marketers have a lot of confidence in their organizations’ data gathering and fewer worries about the future.

For those that rely heavily on third-party data, like Data-Reliant respondents, a custom-built data management system may need to be in the works. This group knows data is essential to marketing and that you need high-quality data to succeed. Therefore, finding other sources for data collection is essential.

Those who believe the best prospect lists are developed in-house think third-party data is risky and worry about their data privacy may relate to our Concerned respondents. These marketers know third-party data is going away and don’t think their organizations are prepared.

Once third-party cookies leave Google Chrome in 2024, marketing will no longer be business as usual. Marketers will need new methods to gather data asap. Upgrading your data gathering process isn’t impossible. It just requires thinking ahead, time, and a strategic mindset.

The Future of Targeted Ads

For years, third-party cookies have been the gold standard for targeted ads. While Ad tech companies are looking to fill the void, there’s no clear winner. The Privacy Sandbox is still in development. Federated Learning of Cohorts (FLoC) stalled and then transitioned to Topics, but no one knows where marketing will ultimately land.

The key takeaway here is to not wait for the industry to clear a path forward. Create your own data strategy to lead your organization into the future.

To learn more about the research study, check out our entire executive summary. And to explore the data yourself, check it out here. 

How to Upgrade Your Marketing

The third-party data landscape is changing already. In the US, 35 states plus the District of Columbia have introduced or considered nearly 200 consumer privacy bills. What’s driving these changes? Consumers.

Recent research by Axway found that 90% of respondents want to know what type of data businesses have gathered about them, and 42% are “very concerned” about their online data security. Consumers are leading the data privacy revolution, and as a result, the marketing industry as we know it will look different.

As we’ve discussed in previous blogs, third-party data is going away. If businesses want to sit back and watch consumer data changes, they will get left behind. Without quality, relevant data, it’s harder to identify and engage prospects, close deals, and have complete visibility into how sales and marketing departments are doing.

Customers want their data treated with respect, and they have high expectations for brands. A Salesforce survey found that 66% of consumers want businesses to understand their unique needs and experiences. And 62% of consumers want businesses to care more about them. Businesses must understand consumers in order to engage them and provide meaningful brand interactions — personalization is the key to doing that effectively.

Relying heavily on third-party data to personalize your marketing can be a recipe for disaster (and lead to declining sales). Fortunately, there’s a straightforward solution to overcome these challenges and changing legislation. Collect your own customer data.

The best way to get started is to assess your data reliance baseline. Ask yourself: How much does your organization rely on third-party data?

We recently conducted a research study to find out how professionals view these changes and how they currently gather and use data. In today’s post, we’ll explore how you can upgrade your marketing in light of these changes.

There’s No Escape From Third-Party Data

Because third-party data will go away eventually (it’s a matter of when, not if), businesses need solutions to shift data practices while still being able to understand and connect with consumers. It’s essential to identify how much third-party data you use so you can see how your marketing will be impacted. Now’s the time to make changes so you can stay ahead of the curve.

Third-party data often comes from cookies, but providers also get data from websites, social media profiles, apps, and surveys with consumer information — all of which comes at a cost. That data includes things like names, email addresses, purchasing behavior, web browsing history, etc. And the companies that collect it are in big business; but they’re not just selling data. Google and Facebook collect massive amounts of consumer data and generate revenue by selling ad space to brands selling products or services.

Third-party data is hugely influential in the marketing sphere. It makes many day-to-day marketing activities possible, including:

• Programmatic advertising
• SEO and keyword research
• Social media advertising
• Targeting and retargeting ads
• Audience building and segmentation

If you’re one of the businesses who relies heavily on third-party data for successful marketing, you’re not alone. Marketers across industries and company sizes are in the same boat. Our research found that 42% of marketers say their organizations purchase data from outside sources like Google or Facebook. These days you have two choices: You can fight against rapidly changing data accessibility and legality, or you can go with the flow and rely on your own data instead.

Many Marketing Activities Rely on Third-Party Data

Our research discovered that a substantial percentage of business marketers use marketing activities that rely on third-party data, such as:

• Social media marketing — 63%
• Email marketing — 63%
• Search engine optimization — 56%
• Programmatic media buying — 29%

After conducting the research, three distinct attitudinal segments emerged: Independent, Data-Reliant and Concerned respondents. We found the Data-Reliant group is more likely than Independent and Concerned marketers to have pursued any of the above marketing activities in 2021, making it extra important for them (and other marketers that relate) to evaluate current data practices.

Data-Reliant respondents are investing in areas where they can start putting a plan in place to collect their own first-party data, as well as being able to follow the full customer journey. The more we as marketers can flesh out our plan to move from first to third-party data, the better we can adjust to the changing market.

Even though Google Chrome has 63% market share, all marketers have seen some type of change in their data because the remaining 27% of the market has already made the jump to cutting out third-party cookies.

Diversify Your Ads for the Best Results

80% of business marketers say their organizations leverage targeted media buys based on data parameters set by organizations like Google and Facebook.

That’s no surprise as those are some of the top platforms. They have been in the data collection business since day one. Have you ever wondered what would happen if they go away? That’s the number one reason why it’s worth diversifying your ads across different platforms and ad networks.

Depending on how you do it, targeted ads often require third-party data to be effective. And the data needed to place a targeted ad to a segment of an organization’s audience needs to come from somewhere.

Ad targeting with first-party data isn’t all that different from ad targeting with third-party data. The main difference is you’re no longer relying on other organizations to collect, organize, and segment the data. That may seem like it requires more effort, but it’s often more reliable, accurate, and valuable.

4 Steps to Gather, Analyze and Secure Your Data

Now’s the time to adapt how you collect and analyze customer data. Even if third-party cookies on Chrome are here until 2024, that change will be here before you know it. Business marketers who plan ahead will find themselves better positioned to continue business as usual when the changes hit. What’s important is that you take action to upgrade your data practices — one step at a time.

Step one, create a plan to start collecting first-party data and how you’re going to implement it.

Step two, audit your existing data. Ask yourself these questions:

• How is it formatted?
• Where is it stored?
• Where does it come from?
• What data do you need?
• What data can you live without?

Step three, implement your plan with findings from the audit.

Step four, hire someone — seriously! If you have the budget, hire someone internally to head up the switch to first-party data. Otherwise, find a firm that will partner with you — one that has invested the time, knowledge, and resources into this area. Good news is that we know just the place.

To learn more about the research study, check out our entire executive summary. And to explore the data yourself, check it out here. 

It’s Only a Matter of Time Before the Way Marketers Get Data Changes

Time is running out. Google announced that they’ll be phasing out third-party cookies on Chrome in the second half of 2024. Here’s what they said about the change:

“We don’t believe these solutions will meet rising consumer expectations for privacy, nor will they stand up to rapidly evolving regulatory restrictions and therefore aren’t a sustainable long-term investment. Instead, our web products will be powered by privacy-preserving APIs, which prevent individual tracking while still delivering results for advertisers and publishers.”

Google’s stance is that consumers don’t want their movements across the web tracked and used by advertisers. However, the company acknowledges it’s not a black-and-white issue. Instead, they seek a middle ground where advertising can stay relevant and profitable while consumers maintain privacy.

It’s not just companies that benefit from this data. Data collected is essential to offer a personalized experience to existing and potential customers. According to Salesforce, 74 percent of Gen Zers, 67 percent of Millennials, 61 percent of Gen Xers, and 57 percent of Baby Boomers are interested in personalized products.

Google also acknowledges the benefits of first-party data in building customer relationships—the first-party cookie is here to stay. But, whether you agree with Google’s actions or not, change is coming. It’s time to address the challenges organizations face in 2022—and create solutions that preserve customer insights.

We recently conducted a research study to find out how professionals view these changes and how they currently gather and use data. In today’s post, we’ll explore the challenges each attitudinal segment faces.

Data Challenges Span Organizations

As discussed in our previous blog post, 79 percent of respondents say they’re directly involved with data collection decisions at their organizations, and nearly half (47 percent) are purchasing third-party data. 42 percent are using sources like Google and Facebook to do so.

About one-third of respondents say they have substantial data-related challenges their organizations need to overcome, including obtaining the skills necessary to work with customer data and multiple data sources (data silos) that don’t work well together. Additionally, about one-quarter of respondents say their organizations face difficulties gathering data to replace third-party cookies.

Once third-party cookies go away, that’s a lot of data that needs to be replaced. The solution is obtaining your own first-party data that you own independent of data-changing legislation. This type of data is collected directly from customers and is not subject to the same restrictions as third-party data. As a result, businesses that obtain first-party data can be confident that they will be able to continue to collect and use customer data, even if third-party cookies are no longer available. While first-party data may require some additional effort to obtain, it is well worth the investment for businesses that need to collect customer data.

Some ways to collect first-party data are to ask one or two more questions on an online form. Partner with others in your industry to send out an email on your behalf to a form or gated content that will collect that data.

Our research found that organizations are also facing additional data challenges in marketing. 40 percent say it’s hard to find qualified employees in this area, and 35 percent say their organizations struggle to connect with and nurture qualified prospects. Good candidates to manage your company’s data are individuals who are interested in data, who pay close attention to details, and are strong analytical thinkers. Focusing on those individuals should make filling these positions more seamless.

Because data is so essential in today’s marketing and advertising workflow, your success in 2022 and beyond depends on adapting a seamless data flow.

It’s important to know that collecting data can help create a more detailed understanding of existing and prospective customers, but it has to be the right data. Knowing only that someone clicked on a particular link is not as helpful as knowing how many users made a purchase or joined your loyalty program. Analyze past customer behavior and characteristics to help inform what a “good” prospect looks like. Today’s data collection is informed by yesterday’s data analysis and insights.

It’s always a best practice to start with the research questions. Know what you want to learn from your data and use this as a guide for what data needs to be collected. Having a hypothesis or prediction ahead of time can be helpful, but it can also increase the likelihood that you inadvertently adopt a biased approach to data collection. It can also be hard to accept data that doesn’t match your initial prediction.

Different Data Segments, Different Data Challenges

Coming out of the research study, three different attitudinal segments emerged: Independent, Data-Reliant and Concerned respondents. Each feels differently about the challenges their organizations face.

Independent respondents feel optimistic about their organizations’ data practices and don’t worry about third-party data as much because they’re the least likely of any group in the study to use it. They’re also the least likely to worry about buyers blocking their ads or data privacy laws and legislation.

Data-Reliant respondents live and breathe data and believe it’s more important than ever. They have no ethical quandaries about using third-party data and say their organizations have plans to integrate more data into their decision-making.

Concerned respondents make up the largest portion of our study. These professionals believe purchased data carries risks and can negatively influence customer perceptions about their organizations and are looking for ways to replace third-party data when it goes away.

Ask yourself: Which one closely matches your perspective? Your feelings about data can reflect the challenges you face. It can also provide insights into how to overcome them.

Overcoming Data Challenges in Marketing

It’s common for small organizations to be understaffed, underskilled and underutilize the data they do have. On the other hand, larger organizations can misuse data or find themselves in hot water with customers and regulators. Think about the unique challenges your organization faces. What challenges are you most concerned about?

No matter what size organization you’re a part of, always make sure you understand how your data flows. Remember, poor quality data means a poor quality output. We know that gathering data can be tricky. The first and easiest step is just getting email addresses. Also, make sure you and your team really understand the implications of third-party data going away. If you don’t have a plan in place for when the change happens, it’s going to be much more challenging to find a solution.

To learn more about the research study, check out our entire executive summary. And to explore the data yourself, check it out here. 

Defining your terms – what is customer data, exactly?

First, what is first-party data?

What is third-party data?

So, what’s the difference between first-party and third-party data types?

Alright, now let’s talk about zero-party customer data

Using your data – analyzing and interpreting your findings to make better marketing decisions