Despite Google’s surprise row back on its ‘cookie cull’, too many marketers are still over-reliant on third-party tracking tools, the latest research from Wunderkind, the leading AI-driven performance marketing solution, warns. Its latest research shows almost two thirds (63%) of marketers are still reliant on third-party cookies playing a major role in their customer engagement strategies.
Original research of over 100 senior retail executives in Wunderkind’s 2024 CMO State of the Union Reportalso showed that, because of retailers’ continued reliance on cookies, nearly three in five were concerned about Google’s third-party cookie cull before the search engine’s surprise decision to reverse its cookie depreciation plans.
After several delays to the long-discussed cookie deprecation, Google removed cookies from 1% of its Chrome platform browser in January 2024. However, in light of industry and legal objections, it then pushed back its timeline to fully phase out cookies until 2025 – the third time the original deadline has been delayed – before finally announcing it would abandon cookie depreciation altogether in July.
“Many marketers may feel a sense of relief after the lengthy twists and turns of Google’s third-party cookie strategy and its most recent row back to cancel depreciation altogether. However, the decision doesn’t change the inevitable fact that, even before Google’s u-turn, the cookie was already crumbling, and many had already accepted that it was no longer fit for purpose,” Wulfric Light-Wilkinson, International GM of Wunderkind, said.
“Customers seek meaningful connections and long-term relationships with the brands they love, rather than ads delivered by third parties that rely on tracking to drive short-term revenue.” Light-Wilkinson continued. “The opportunity remains for the brands that leverage and optimise their own first-party data to build direct relationships with shoppers. These brands are poised to lead their categories, driving increased revenue and higher customer lifetime value through enhanced loyalty and advocacy.”
Wunderkind’s research shows that now three quarters (75%) of retailers are turning to 1st party data as an alternative to cookies, while over half (52%) are implementing zero party data in their customer engagement strategies. Over two thirds (69%) are also looking to reduce their reliance on cookies by turning to their owned channels, such as email and SMS, to reach their consumers directly.
“The transition away from third-party cookies is pushing marketers to innovate with first-party data collection and other privacy-centric solutions. While this shift poses challenges, it also opens the door to more ethical and sustainable data practices in the industry, paving the way for a new era of responsible marketing,” Light-Wilkinson concluded.
