The Cookie Apocalypse: Marketers Pivot To Privacy-first Strategies

In modern marketing, a transformation is on its way - phasing out of third-party cookies, which has been long considered the bedrock of online advertising and user tracking. This change, referred to as the 'cookie apocalypse' is compelling marketers to reassess their strategies for targeting and personalisation.

For years, third-party cookies have been the go-to tool for tracking user behaviour across websites, enabling marketers to deliver targeted ads and personalised experiences. However, growing privacy concerns and regulatory pressures have pushed major players like Google to reconsider their use.

While Google's recent decision to delay the deprecation of third-party cookies in Chrome has given marketers a temporary reprieve, the writing is on the wall. The future of digital advertising will be less reliant on cookies and more focused on first-party data and alternative targeting methods.

Sriram Padmanabhan, Marketing Director at Danone India acknowledges the industry-wide impact. "We refer to this internally as the cookie apocalypse. Entire industries have been built on this, and there's a certain way of conceiving and executing marketing campaigns", he notes.

Shift To First-party Data
As the cookie crumbles, brands are now turning to first-party data strategies. The approach involves collecting data directly from consumers through owned channels, providing a more privacy-compliant and potentially more valuable source of information.

Eyeing this, brands are investing in new technologies and data strategies. Padmanabhan seconded the thought stating, “We are in the process of developing an ecosystem to have first-party data and that is where more and more investment is going to be.”

The shift is not merely about compliance, it is also about building stronger, more direct relationships with consumers. Utilising first-party data will enable brands to craft more personalised experiences while prioritising user privacy.

Sandeep Sangwan, Managing Director of Castrol India highlights their proactive stance stating, "We are very conscious of the regulation around storing any personally identifiable data. We are trying to actively create first-party databases, rather than relying on third parties. We're looking at how we can create an ecosystem where we have a lot of first-party data consumers which we can use for retail targeting and reaching out to them with relevant communication."

Leveraging Existing Customer Relationships
For some industries, the transition may be smoother than others. Companies with strong existing customer relationships and robust CRM systems find themselves at an advantage.

Shubhranshu Singh, Chief Marketing Officer of CVBU at Tata Motors sees this as an opportunity. "For a business like Tata Motors, it is an easier transition because we are already dealing with our existing customers who are fleet owners, mechanics, financiers. Our telematics platform is able to give them very rich analytical insights", he emphasises.

Singh highlights the value of permission-based marketing in this new landscape. He asserts, "Riding on top of that is a permission marketing modality so they will happily do a handshake with us to share that information. And on that, we can create value stacks which are of mutual benefit."

Combining Strategies For Success
While first-party data is crucial, some marketers are adopting a multi-faceted approach. Rohit Talwar, Vice President & Head of Marketing at Castrol India explains their strategy, "We use both probabilistic and deterministic signals to reach car, bike and trucker audiences in the most efficient and effective manner."

He also stresses the importance of leveraging multiple touchpoints. "We have a tech platform where we have several hundred thousand mechanics interacting and engaging with us on a daily basis, both from a transaction level as well as from a learning and upskilling perspective. That generates a huge amount of data", says Talwar.

As Google’s tentative stance on third-party cookies continues to unfold, the marketing world is prepping for a future, building new foundations for a privacy-first, data-driven future. This shift will be built on trust, transparency and value exchange between brands and consumers.

Reema Bhaduri

BW Reporters The author is the Editorial Lead at BW Businessworld. Majorly writes on marketing, advertising, experiential marketing and retail. She closely looks upon the vertical of BW Marketing World and BW Retail World.