Don’t be fooled by Google’s U-turn: why you should stick to your first-party data strategy
Google’s recent delay in phasing out third-party cookies may seem like a reason to pause your shift towards first-party data strategies—but don’t be fooled. As privacy regulations tighten and more browsers block third-party cookies, relying on outdated methods will only lead to diminishing returns. Now is the time to double down on server-side data collection and first-party strategies. By taking control of your data and prioritising privacy, you’ll build deeper customer trust and ensure sustainable, long-term growth. Discover why sticking to a first-party data approach is essential in today’s evolving digital landscape.
Google's recent decision to delay the phasing out of third-party cookies in Chrome has shaken the advertising and digital marketing world. While some organisations may see this as a reason to pause their transition to server-side data collection and first-party data strategies, it is crucial to stay the course. Third-party cookies are becoming increasingly unreliable, especially as privacy regulations tighten, and browsers like Safari, Firefox, and Brave already block them by default. Meanwhile, privacy-conscious users are adopting more and more cookie-blocking tools and extensions, further diminishing the effectiveness of third-party cookies.
This is exactly why Google is seeking a new balance between protecting user privacy and maintaining the ability to serve targeted ads through their Privacy Sandbox initiative. Google plans to introduce new Chrome features allowing users to manage and adjust their privacy settings at any time. The aim is to give users more control without completely dismantling the ad ecosystem. However, businesses must not let this distract them from building a sustainable, privacy-compliant strategy based on first-party data.
Why Google’s decision shouldn’t change your first-party data strategy
Google’s decision to delay the phase-out of third-party cookies might seem abrupt, but several factors likely contributed to it. The UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO) have expressed concerns that Google’s proposed Privacy Sandbox could stifle competition and strengthen its monopoly position in digital advertising. Likewise, the U.S. Department of Justice has ruled that Google is a monopolist in its American antitrust case. Regulatory pressure and advertiser scepticism about Privacy Sandbox’s effectiveness have maneuvered Google into a complex environment. There are even indications that Alphabet Inc., Google’s parent company, might be forced to spin off its browser division. This may be one reason they’re maintaining their third-party cookies for now, aiming to retain their current ad revenues and avoid further financial losses.
But regardless of Google’s broader strategy, the key takeaway is that relying on third-party cookies is not a viable long-term plan.
Why server-side data collection is more relevant than ever
Despite Google's decision to maintain third-party cookies in Chrome, server-side data collection remains essential. As other browsers like Safari and Firefox already block third-party cookies by default, and privacy-conscious users increasingly adopt blocking tools, relying on third-party cookies offers diminishing returns and creates a false sense of security. Server-side data collection, on the other hand, allows brands to build a robust first-party data strategy that improves data accuracy, ensures privacy compliance, and puts control back in the organisation’s hands.
Key benefits of server-side data collection:
- Data control and privacy compliance: Direct collection and management of user data ensure compliance with privacy regulations and enhance customer trust.
- Improved data quality and accuracy: Eliminates issues like ad blockers and browser restrictions, leading to more reliable data.
- Ownership: The data is collected directly and stored on your own servers, not on third-party servers.
- Better personalisation and user experience: Enables more effective personalisation without relying on third-party data that may not align with evolving privacy norms.
A full first-party data strategy: more than just server-side data collection
Server-side data collection is a crucial part of a privacy-centric approach, but a comprehensive first-party data strategy encompasses much more. Brands must recognise that investing in first-party data strategies is essential for sustainable growth in the evolving digital landscape. While third-party cookies may still be available temporarily, their effectiveness has been declining for years. Relying on them is a short-sighted approach that leaves brands vulnerable to future disruptions.
First-party data, collected directly from consumers with their consent, offers a reliable, sustainable, and privacy-compliant way to engage with audiences. Unlike third-party data, which often raises concerns about privacy violations and lack of transparency, first-party data fosters trust between brands and their customers. Brands that base their strategies on first-party data will be better positioned to succeed in a world increasingly governed by privacy regulations and user expectations.
Essential elements of a comprehensive first-party data strategy:
- Develop a comprehensive, privacy-focused data ecosystem: A future-proof data strategy combines first-party data with zero-party data (voluntarily shared by users), customer feedback, transaction data, and other proprietary sources. This holistic approach creates a 360-degree view of customers, enabling more accurate targeting and deeper relationships.
- Refine and expand your data strategy: A robust first-party data strategy includes understanding what data is needed and how it can drive business outcomes. Brands should focus on data that supports effective look-alike models, segmentation, and scoring models. This ensures that the collected data is actionable and improves marketing efficiency.
- Invest in contextual and predictive targeting: Focus on alternative targeting strategies such as contextual and predictive targeting. Contextual targeting displays ads based on the content of the web page rather than tracking user behavior, offering a privacy-friendly way to reach relevant audiences. Predictive analytics further helps brands understand customer intent and optimise engagement without invasive tracking techniques.
- Build direct relationships with publishers and partners: In the absence of third-party data, direct relationships with publishers and partners with strong first-party data become crucial. Publishers offer valuable insights about their audiences, giving brands access to seller-defined audiences and effectively using in-house modeling capabilities.
- Communicate transparently with your customers: While the cookie banner is a mandatory requirement, it also offers an opportunity to communicate transparently about data. Companies should think about how they can use the cookie banner as a vital part of their acquisition strategy. It’s important to note that the cookie banner essentially serves as a tracking banner, making it clear how and why you are collecting visitor data. Server-side data collection is in no way a solution to bypass this obligation, as some brands may believe.
Brands that continue to invest in first-party data strategies, even as Google shifts its stance on third-party cookies, will find themselves in a stronger, more resilient position. The shift away from third-party data is not a temporary trend, but a long-term movement toward a privacy-first marketing ecosystem. By focusing on first-party data and privacy-centric alternatives, brands can maintain control of their data, build deeper customer trust, and comply with evolving regulations. This is the strategic direction that will drive sustainable growth in the coming years.
Conclusion: Stay the course toward privacy-first marketing
Google’s announcement may seem like a reprieve from the exit of third-party cookies, but the future is undeniably moving toward more privacy-centric solutions, and organisations must be prepared. Server-side data collection should remain a central part of your first-party data strategy, not only because it circumvents the limitations of third-party cookies but also because it gives you control over your data and helps build trust with your customers.
The message is clear: Don’t be misled by Google’s pivot. Instead, continue to invest in first-party data collection methods, refine your data strategies, and build direct relationships with your audience. This is the path forward in a world where privacy is not just a buzzword but a fundamental expectation from your customers.
By staying ahead and maintaining a robust first-party data strategy, you can future-proof your business and ensure that your marketing efforts remain effective and relevant, with respect for user privacy.