Are you prepared for the end of third-party cookies? Many B2B marketers aren't. In a survey by BCG, fewer than 50% of respondents said their companies had developed plans to update their customer-data strategy.

Collecting quality data remains one of the biggest challenges to successful lead generation. Marketing attribution and performance are already being affected by new data protection laws. And there's been a lot of talk about the phaseout, but not a lot of clarity about what will replace third-party cookies.

So, it's hardly surprising marketers don't feel prepared.

While it might seem daunting now, we believe the end of third-party data will ultimately improve the quality of B2B marketing. Indeed, we feel there is tremendous value to be gained by leaning into a strategy that protects data privacy. The path forward is not simply to replace the third-party cookie with another form of invasive tracking. Instead, it is about designing sustainable long-term solutions that show customers we are trustworthy data custodians. 

So, let’s dive into what marketing in a cookieless world might look like!

An Overview of Web Cookies

During the early years of the internet, websites could not track individual user history, preferences, etc. Every time website visitors would leave, the site would essentially reset. If an online buyer accidentally closed the page, they would return to an empty cart.

It was frustrating, for buyers and vendors alike. 

Everything changed in the mid-nineties with the invention of the first-party ‘cookie’. These small text files, stored on the user’s browser, enabled websites to remember certain user actions. Soon, businesses started to share their stored user data with partners as second-party cookies. Then advertisers discovered they could adapt cookies to track user behaviour across the web—and lo! The third-party cookie was born.

Why Third-party Cookies Are Crumbling

The problem with marketing cookies is they can create detailed user profiles, sometimes including sensitive data, without the user’s knowledge or explicit consent. Individuals have no visibility into when they are being tracked online, which companies are processing their data, and for what purposes. Cookies can also be exploited for spamming and other types of cyberattacks. The result has been a growing concern over data privacy and the push for legislative action.

There is also the simple fact that third-party cookies no longer work all that well. To start, there is the ever-growing rise of ad-blocking software. Furthermore, differences across devices, web browsers, and data platforms mean advertisers often have to be satisfied with lacklustre identity match rates. These low match rates result in subpar ad personalisation which harms customer trust.

How Cookie Deprecation Will Impact B2B Marketing

In response to legislative and consumer pushback, major tech companies have started eliminating third-party cookies. Firefox and Safari started to block third-party cookies by default in 2019. Google announced its intention to phase out third-party cookies from Google Chrome by 2024.

It is undeniable that digital advertising is going to take a hit with the end of third-party cookies. As such, B2B marketers who rely on third-party data can expect negative impacts on advertising returns, lead volume, and reach. It will also cause short-term challenges with marketing attribution.

Yet other tactics will be largely unaffected. First-party tracking means you’ll still be able to gather information about how leads are interacting with your site. Moreover, UTM codes mean you’ll still be able to track and segment data from content marketing campaigns.

The increased focus on data governance is also encouraging the development of new models for digital identification. For example, technologies like universal identifiers, blockchain authentication, and integrated customer data platforms.

There are also broader implications to be considered regarding the deprecation of third-party data.

For example, the move to eliminate third-party cookies works for big consumer-facing platforms like Google, Apple, Amazon, and Facebook/Meta. They have massive amounts of first-party data contained in closed-loop ecosystems (often called 'walled gardens'). This gives them a huge leverage and an advantage over businesses with limited first-party data access.

Governments, consumer advocates, and business coalitions are working to curtail big tech's ability to unfairly leverage customer data. However, there still remains a great deal of uncertainty over what that looks like. How do we balance individual data privacy with the needs of public services, businesses, and researchers who depend on such data? 

A Step-by-step Guide to Building a Cookieless Strategy

To flourish in the emerging privacy landscape, B2B marketers should develop strategies that can hold up under many possible scenarios. Here are six practical actions you can take to strengthen your B2B marketing strategy with other data sources.

1. Assess Where You Are

Before you jump into building a cookieless strategy, carefully audit your organisation’s current data practices. Document what types of customer data you collect, process and store. Also, run a privacy risk assessment for each type of data. 

Ask your team:

• Do your current data practices meaningfully improve your customer journey and benefit the user?

• What parts of your customer journeys are most dependent on third-party data?

• How will the loss of third-party data impact marketing costs and revenue?

• Do you have the data and analytics infrastructure and competencies for collecting first-party data?

• Are you working through a clean room (a secure data environment) and using other protections to safeguard data?

• What policies do you have in place to ensure you are transparent about user data?

2. Invest in First-party Data Collection

Root your customer experience in data ethics. Designing multiple compelling touchpoints to gather relevant first-party data throughout the customer journey is critical. High-quality content, surveys, loyalty programs, and interactive experiences can encourage professionals to share their data. For example, asking a prospect for their business department to deliver a curated product demonstration.

Another important source of first-party data is your website. Your website should be more than just a tool for lead capture. Forward-thinking companies' websites are a platform where their audience can interact, with the brand and each other.

You can learn a lot about your audience by tracking how they use your website. Knowledge libraries, on-demand training, purchasing and repurchasing services, and community forums all provide behavioural data. This information can then be used to improve audience targeting throughout the rest of your marketing strategy.

3. Build a Powerful, Integrated Technology Stack

Assess your existing tech stack and determine which parts are reliant on third-party cookies. You need to be strategic about your technology investments and reduce risk by focusing on durability. Make sure you have capabilities to collect and analyse first-party data, automate campaigns, target specific audiences and deliver more personalised experiences. 

When building out your tech stack, there are three goals you should keep in mind:

Data consolidation

Each customer's data should be unified into a single ID, to build a more complete customer profile based on all the interactions your organisation has had with them. 

Cross-functional agreement

You need a tech stack that is cross-functional with other teams that depend on your customer data. This includes sales, finance, customer success, product design, etc. The CMO must work with other business leaders to create a data strategy that serves the organisation as a whole.

Building advanced analytics

Your company should invest in hiring and training employees with strong analytic skill sets. Data quality will make or break your marketing strategies. Rather than depending on third-party identifiers, experiment with integrated methods that track business outcomes and triangulate value across multiple dimensions.

4. Create Partnerships and Data Co-Ops

To expand your data resources, look for opportunities to create a mutual value exchange with partners in/adjacent to your industry. For instance, working closely with a review platform that your targeted audience frequently visits and trust when making purchase decisions.

Expanding your mix of data partners can help you target audiences and support qualified lead generation in a privacy-friendly way. Publishers and review sites know a great deal about the content interests and preferences of the audiences they serve. You can use data from these more niche platforms to enhance campaign planning and measurement.

When researching partnership opportunities, seek out publishers with high volumes of first-person data sourced from website forms, surveys, and customer reviews.

5. Use Advanced Contextual Advertising

Contextual advertising uses advanced algorithms to place targeted ads using various contextual factors like website content, keywords, and other metadata. Rather than targeting people based on their past browsing and shopping habits, contextual advertising targets the user’s current mindset. It creates a less disruptive experience for the user, offering a more personalised marketing experience while minimizing the need for consent. Indeed, a 2021 study by IAS found that contextually matched ads increase positive sentiment and improve brand recall.

Contextual ads can help B2B marketers reach niche audiences and pair quite well with strategies like journey-based advertising. For example, say you are a project management software company trying to reach HR professionals. During the awareness phase, a decision-maker might read a post you've sponsored on common problems with HR project management. Later, during the consideration stage, they visit a software review site and are served an ad for a specific product.

6. Keep Up With Privacy Regulations and Market Developments

Marketers must understand the various actors and elements involved in the current debate over personal data usage.

First are the various regulatory changes limiting how companies can store, use, and sell data. Think the European Union's General Data Protection Regulation (GDPR). Then there are the platform changes being made by leading tech companies as they fight for a competitive position.

We are also entering a new era of empowered B2B buyers. Digital natives who have a more nuanced understanding of data collection and are demanding that said data is used for their benefit.

Maintain an open conversation with your data-sharing partners and monitor existing data governance policies. For example, the Data Protection and Digital Information Bill recently introduced to Parliament. Even more importantly, proactively listen to and honour your clients’ wishes regarding how you use their data. Just because a law says you can do something with personal data, doesn’t necessarily mean you should. 

Build Resilient Strategies with 1827 Marketing

We recognise that the industry's response to the end of third-party cookies is still evolving. Moreover, we understand that many B2B marketers are uncomfortable with trying to navigate the situation when everything is still so uncertain.

However, there are strategies that you can put in place to take control where you can. Invest in privacy-forward technologies and data strategies. Focus on new outcomes-based trajectories that better serve buyers and vendors alike.

Contact 1827 Marketing today to learn how we can help you prepare for a cookieless world. Our expert consultants will work with you to design resilient marketing strategies and integrated data solutions.