Performance marketing

Cookie deprecation is not just the CMO’s problem – The Drum

Summary

As part of The Drum’s Data Deep Dive, Jacob Loban, the North America head of performance marketing at Edelman Data and Intelligence, argues that the key to preparing for the cookieless world is generating the type of trust that incentivizes consumers to share first-party data. But creating this level of trust is no easy task — and no single stakeholder’s job.

As we know, Google will phase out support of third-party cookies by the end of 2023. Too often, however, conversations around …….

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As part of The Drum’s Data Deep Dive, Jacob Loban, the North America head of performance marketing at Edelman Data and Intelligence, argues that the key to preparing for the cookieless world is generating the type of trust that incentivizes consumers to share first-party data. But creating this level of trust is no easy task — and no single stakeholder’s job.

As we know, Google will phase out support of third-party cookies by the end of 2023. Too often, however, conversations around the crumbling of the cookie are confined to advertising challenges — and these conversations typically culminate with the revelation that first-party data and contextual targeting is the way forward.

While I don’t disagree on the way forward, I do think confining the issue to advertising is far too limiting and will prevent brands from effectively deploying post-cookie solutions to their fullest potential. In fact, it may be the factor that determines which brands survive and which brands thrive in a post-cookie world.

The trust factor

Advertisers value the cookie for two primary reasons: addressable targeting and user-level measurement. Cookies enable brands to re-engage consumers with tailored messaging via retargeting and dynamic creative optimization. It is a common belief that customer data platforms will help brands maintain a similar approach after the cookie is gone, but these platforms are entirely reliant on first-party customer data, as the name states. This is where the crumbling of the cookie extends beyond advertising and CMOs.

In addition to data regulation, people are generally less open to sharing their data. So, if first-party data is the way forward, one may naturally ask how a brand is to obtain the data it needs to effectively operate a CDP. The answer lies with trust. Our proprietary research indicates that a customer’s willingness to share their data with a brand increases seven-fold if they trust the brand.

Herein lies the rub — trust is typically part of a communications effort led by the CCO, and measured using comms tools and KPIs. While it’s true that some communications channels are better positioned to help build trust, keeping comms efforts siloed from marketing efforts creates a fragmented view of the true consumer journey and prevents the capture and utilization of earned data, creating missed opportunities in marketing.

For example, it’s possible to identify and target people who have consumed or produced earned content, which is data inaccessible via native paid platforms or third-party sources. Additionally, marketing can be used to scale communications efforts, such as using paid ads to drive to positive earned mentions, creating more earned data.

The earned data produced by integrated marketing and communications efforts is then used to better understand the beliefs and motivations behind consumer behavior. Using data with empathy is essential for building trust, and critical as we move into the next era. It’s a virtuous circle: trust drives data; data drives empathy; and empathy builds …….

Source: https://www.thedrum.com/opinion/2021/11/18/cookie-deprecation-not-just-the-cmo-s-problem