We know that the threat of cookies being removed completely has been a threat for quite some time. And while it may seem like a cause for celebration for advertisers, it should be a time for deep introspection and strategising. Apple began removing third party cookies as early as 2017, with a consistent, deliberate quest to have them fully eliminated from the Safari browser which took place in 2020. Google had also been threatening the removal of third-party cookies for a few years, which sent marketers and advertisers into a panic. Due to several reasons including industry pushback, regulation concerns and a more robust approach, Google then announced that they would no longer be removing third party cookies. While this has been a win for advertisers, it has also encouraged a more relaxed approach to building first party data solutions, which is the last thing that brands and marketers should be doing. Even though Google has made a U-turn on their current decision, there is still an uncertainty around the permanence of the decision. While there’s no way of knowing that the threat won’t happen again, brands should be using this time to consistently build their mission critical first party data strategy.
The business strategic importance of First Party Data
Our current world is hyper-focused on privacy first and AI, which means that a cookieless future is still looming. And while this does still present a threat to marketers, it also creates an incredible opportunity. An opportunity to gain invaluable insights into our consumers and their behaviour, which ensures that hyper-personalisation is taken to another level. This then allows for brands to improve their digital relationships with their consumers which encourages and increase in customer lifetime value, which is then a ripple effect of better ROI and increased efficiencies. The time to build this strategy is now, and brands that haven’t yet started this are technically already well behind the industry. While it may seem daunting, we are in an incredible time to build as the number of tools and solutions are far more than ever before. Tapping into AI also allows for extensive data enrichment as well as predictive modeling, which brands can then use to drive retention and cross / upselling and lower churn. It allows for more personal algorithms, which means we are speaking to consumers in a language that they resonate with, and they want to take note of. It means messaging is no longer lost in the clutter but is served to a consumer with a full understanding of what they want to hear or see. Think of the user experience on Netflix and Spotify. Tailor made to suit each and every individual that is consuming that content, which ultimately leads to more focus, longer dwell times and captured attention. The world that pretty much every brand dreams of when they are sharing their own content. AI leveraged first party data in this sense takes brand communication from everyday communication into a strategic competitive advantage without violating privacy concerns. Why wouldn’t marketers capitalize on this? There is a clear answer to this question.
The true cost of this data?
We know that the martech stack has a number of options, with each promising to be better than the one before, adding an unnecessary layer of additional complexity into an already complex topic. There are limited resources who can fully the grasp not only the handling of data but understanding and interpreting it. Data without the insights attached to it is simply a bunch of numbers. So, it’s really no surprise that CFO’s and financial leadership looks at the cost of the offering and more often than we tend to admit decline the request. Marketers generally don’t know how to explain the extreme value of the offering to themselves, let alone the finance team. So therefore, the cost may seem high and be shut down, but the long-term cost of that shutdown could tend to be far more than expected. A lack of a data strategy is a sure way to ensure that your business is not future proof in a digital first world.
Where does a brand even begin?
A first party data strategy initiation point is clear – start with collecting data. Newsletters and email sign-ups generally are a great starting point to gathering consumer data. But a more beneficial place to start is a loyalty program. On a local front, Checkers with their Sixty60 offering is one brand that knows just how to understand their consumers through their first party data. Personalised discounts on regular items is a sure way to encourage repeat purchases. Repeat purchases means a higher customer lifetime value, better ROI. The ultimate goal of the strategy.
The phase-out of third-party cookies isn’t just a technical shift - it’s a signal that the era of passive, proxy-based targeting is over. The brands that win in this new era will be those who understand their customers deeply and use that understanding to craft meaningful, respectful experiences. First-party data isn’t just the future - it’s the present, and the time to invest in it is now.
Contributed by Marvin Kgasoane on behalf of the AMF Board.
About the AMF
The Advertising Media Forum (AMF) is a collective of media agencies and individuals including media strategists, planners, buyers and consultants through whom 95% of all media expenditure in South Africa is bought. The AMF advises and represents relevant organisations and aims to create open channels of communication and encourage and support transparent policies, strategies and transactions within the industry.
For more information on the AMF, visit www.amf.org.za
