The end of third-party cookies

Here’s the four-step KPS plan to a successful strategy change

06. April 2022

9 Minutes

New solutions are required to implement online targeting and personalisation

The world of web analytics is undergoing change. The focus of the transformation: protecting net visitors from non-transparent use of their data. Especially third-party cookies are a dying breed, at least in their current form. The Safari and Firefox browsers are already blocking third-party tracking, and Chrome is expected to adopt the same course as its competitors in the foreseeable future. Although Google has now postponed corresponding plans again – and who knows if the end of the cookie era will come at all – all roads are apparently leading to a world with reduced cookie volumes – high time for marketers to look around for new, creative personalization options. And they do not have to accomplish the task alone. As part of its Instant Personalisation strategy, KPS has developed a four-step plan to successfully transition into the post-cookie era.

The most important points of the blog

Personalisation: The well-worn means of choice in customer acquisition

The digital age has shifted the development of new sales models to the increasingly challenging area of tension between personalisation and privacy protection. Personalisation for the purpose of customer acquisition is a tried and tested strategy that is as old as the market economy itself. Individually selectable product features, the needs-based configuration of product and service components, and even the requirement-specific design and customisation of complex systems are among the means of advanced customer orientation that companies used to secure their competitive position already well before digitisation.

Customer wishes in the digital age

The digital transformation has not only confirmed the principle of personalisation but has significantly strengthened its impact. New technologies offer the possibility of precisely identifying individual wishes and preferences and specifically addressing them. Proximity to customers is growing and addressing customers is becoming ever more personal – to the satisfaction of marketers, but not always to the delight of consumers. The problem: Unlike in its original form, personalised sales is now no longer based solely on explicitly articulated customer wishes. Rather, the sales strategies of digital markets tap relevant preferences indirectly, without the active intervention of consumers.

Third-party cookies: Effective, but by no means

Third-party cookies are instruments of modern web analytics that enable the – largely unnoticed – tracking of user behavior throughout the entire browser across domain boundaries. The technology is a powerful tool for deriving individual user profiles and implementing targeted advertising measures based on them, but it compromises the privacy of web surfers. Their interests are now also being represented on the public side with regulatory interventions such as the General Data Protection Regulation (GDPR).

User tracking by third parties: The final round has begun

In order to protect users’ privacy rights in accordance with the rules, Safari and Firefox already block the execution of third-party cookies. They are currently still allowed in the world’s most used browser Chrome, and will continue to be used as Google has postponed the end of the cookie era again. With its delicate position between the interests of advertisers, legal data protection regulations and the pressure of competing browser providers, Google is literally sitting between two stools. Against this background, it is all the more difficult to define a binding exit scenario at an acceptable pace. In any case, it makes sense to build a strong personalisation strategy that looks beyond third-party cookies.

Opting out of third-party tracking

Despite everything, Google has drafted an incremental plan for phasing out the use of third-party cookies. Time will have to show when or if it will come into practice. The model of successive conversion includes both the adjustments in Chrome and the tasks that marketers will face.

Stage 1

In stage one of the development process, Google will post newly implemented technologies and browser prototypes for discussion in public forums.

Stage 2

Stage two is designed to verify the new functionality in Chrome through transparent testing procedures.

Stage 3

The productive use of the technology will kick off after the development phase in stage three.

Advertisers and publishers will be joining in the release process after testing is complete, around the end of 2022. As from this point, they have about nine months to convert their services. The feedback from this phase serves as the basis for further adjustments in Chrome. It is estimated that the final phase of the changeover will take place in mid-2023, during which Google will completely discontinue tracking by third-party providers within three months.

Customer relationships at eye level: The restriction as an opportunity

What at first glance would appear to be restrictive and causes anxiety among marketing managers, in fact offers the opportunity to elevate customer relationships to a new level of quality when viewed in the clear light of day. Provided they act decisively and with foresight, advertisers now have it in their power to enter into a dialog with customers and prospects at eye level and establish sustainable methods of personalization. In order to pave the way for a new marketing concept, KPS has developed an Instant Personalisation model that leads from a third- to a first-party strategy in four steps.

Instant Personalisation by KPS: Four steps to a sustainable marketing strategy

1. Transparent procedures

Step 1

Repositioning vis-à-vis data protection requirements: For advertising companies, it is a matter of implementing maximally transparent procedures for data storage and use.

Learn more

2. Consolidating data inventory

Step 2

The second step involves consolidating the data inventory and reviewing the data collection and processing procedures.

Learn more

3. Communication strategy

Step 3

The measures in steps one and two are the prerequisite for the introduction of a transparent communication strategy in step three.

Mehr erfahren

4. Personalisation strategy

Step 4

Step four of the strategic reorientation is the implementation of a comprehensive personalization strategy – networked, across all marketing channels.

Learn more

Step 1

The implementation of the strategy change starts with a repositioning vis-à-vis data protection requirements. For advertising companies, it is a matter of implementing maximally transparent procedures for data storage and use.

This requires that users

give their express consent to the personalization,
are always aware of what insights they provide,
can take advantage of the opportunity to manage their data protection rights,
gain access to all stored information,
request the deletion of data and withdraw consent to data collection.

In addition, in order to enforce a consistent privacy-compliant marketing strategy, comprehensive documentation of the consent history for each user is essential.

Step 2

The second step involves consolidating the data inventory and reviewing the data collection and processing procedures.

The agenda includes

the exact overview of the type of customer data collected and its purpose,
reconciling first- and third-party data and determining the information gap to fill when third-party tracking is eliminated,
gaining an overview of the storage locations of personal customer data and a validation of the data protection measures that apply to the respective server location.

The detailed analysis of the status quo enables marketers to implement optimization measures in a targeted manner and, if necessary, to develop new strategies for the implementation of legally compliant personalized campaigns.

Step 3

The measures in steps one and two are the prerequisite for the introduction of a transparent communication strategy in step three.

The objectives here comprise

building an insightful collection of personal data with user consent,
clearly communicating in customer contact what data is being collected and for what purpose,
explaining the value of personalized information for customer-focused service and rewarding user cooperation in building an appropriate database,
respecting the users’ need for security and disclosing all measures taken to protect against misuse.

Step 4

Step four of the strategic reorientation is the implementation of a comprehensive personalisation strategy – networked, across all marketing channels.

To do this, companies consolidate and maintain all of their customers’ online and offline interactions in a seamless 360° profile. Internally, it enables valuable insights into customer behavior to be gained. Externally, it enables a consistent, excellent customer experience that activates a variety of success factors:

Customer loyalty grows, which elevates customer lifetime value (CLV).
Customized quotations are easier and faster to create, which helps to increase the Average Order Value (AOV).
Better customer experience (CX) drives up conversion rate (CR), which is a gain for sales.
Customers are more satisfied, and their willingness to recommend the company and their Net Promotor Score (NPS) increase.

Securing customer trust first

After the cookie era has come to an end, there are definitely alternatives, a rethink and a focus on first-party data are necessary. Securing the trust of customers in the long term is the best guarantee for successful customer retention and good sales. With its many years of experience and expertise in online marketing, KPS can provide professional advice and develop promising strategies and measures for a personalised customer experience.

Questions? Fell free to contact us!

E-Mail: blog@kps.com

KPS