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Marketing & Data Challenges - Preparing For A Cookieless Future.
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Similarities Between Algae-Filled Benches and Data-Driven Marketing
As the heading above suggests, this post is going to start slightly differently from the others, and I hope you find the connection interesting. I saw a video of a biochemist in Serbia being able to convert benches into pollution-converting hotspots. Here, people can sit, charge phones, and enjoy the glow of algae converting pollution into clean air.
But what on earth does this have to do with marketing, and even more perplexing, the data challenges facing brands today? There's no doubt about it, there is a climate crisis, and innovations such as pollution-converting benches will contribute greatly to improving air quality in urban areas.
Marketing may not face a planet-threatening crisis, but it is contending with a significant global data challenge. The relationship between consumers and businesses is heating up, threatening to boil over in unprecedented ways since the dawn of the digital age. As concerns grow about data usage and privacy, the stakes have never been higher for businesses navigating this volatile landscape. Earlier this year, it was reported that 63% of the world's population are social media users, a staggering statistic when you consider the array of data points captured and associated with each profile. Ethically, social media platforms are being called to play fair with people’s data.
The most public example of this involves Max Schrems, a law student from Austria. In October 2024, the BBC reported that after five long years starting from the courts of Austria to the heights of the Court of Justice of the European Union (CJEU). It was ruled that Facebook misused his personal data, including information about his sexual orientation, to target ads at him. The CJEU detailed:
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An online social network such as Facebook cannot use all of the personal data obtained for the purposes of targeted advertising, without restriction as to time and without distinction as to type of data."
Facebook Dealt The Largest GDPR Fine To Date
In response to the ruling, Facebook commented, "We await the publication of the Court’s judgment and will have more to share in due course." However, this follows a 2023 EU ruling that issued a €1.2 billion fine following an enquiry into its Facebook service by the Irish Data Protection Authority (IE DPA). This fine, the largest GDPR fine ever, was imposed for Meta’s transfer of personal data to the U.S. on the basis of standard contractual clauses (SCCs).
While this news isn’t threatening the planet, it is certainly making waves in boardrooms. The pressure on social media and advertising companies is intensifying, as the spotlight on data privacy and ethical practices continues to heat up. But if you think that’s the only data concern, then cookies and the ever-anticipated cookieless society are even more shocking. Why? Well, data associated with social media profiles impacts those who register and have an account. However, cookies have been around longer and are more widely used, and according to CookieYes, 42% of websites globally use cookies.
For the uninitiated, Cloudflare defines cookies as small files of information that a web server sends to a web browser. The browser stores the cookies and attaches them to requests made to the web server.
The Cookieless Society – The Horizon That Has Yet to Appear
A cookieless society has been on the cards for several years, but solutions and alternatives are still works in progress, with many brands continuing to utilise cookies for targeting and attribution. Muhammad Zulhusni from TechForge Media recently interviewed Adlook CPO Mateusz Jędrocha, who defines “cookieless” as:
the elimination of third-party cookies from the digital ecosystem. Success in a cookieless world implies that even if cookies disappeared, a brand’s marketing strategy, efficiency, and budget effectiveness would remain intact.
For me, this perspective is somewhat unrealistic. The first part is correct—cookieless refers to a digital ecosystem that doesn’t rely on third-party cookies. However, claiming that strategies, optimisation, operational efficiencies, and budgets will remain intact overlooks the significant disruptions businesses are already facing. Many SMEs and even larger organisations are seeing their targeting, analytics, and attribution impacted by cookie policies and the phasing out of third-party cookies, which directly affects ROI metrics. Years of reporting and data-based decisions pose a huge risk, as cookies are notoriously imprecise.
What’s more concerning is the underlying assumption that current strategies can hold together despite these inaccuracies. If performance remains "intact," it could only mean that businesses are still operating on flawed metrics. This calls into question the reliability of historic performance data and rightly invites leadership teams to ask: Why have we relied on such an unreliable system for so long?
There is no doubt about it: a cookieless society will impact businesses of all sizes. Planning for this society means finding media (cookies used to target audiences and individuals) and attribution solutions (cookies associated with conversions and channel performance) that can be the foundations for future reporting and optimisation. Education is key, and getting ahead of this is fundamental. Leadership teams and executives should be aware of the risks and pain points facing marketing teams as cookies continue to crumble all around us. This is something I wrote about in more detail in 2022 on my LinkedIn - Advice for brands as we prepare for a world without 3rd party cookies?.
Data Privacy and the Consumer’s Dilemma
The key concern is that many consumers don’t fully understand what a cookie is and its data potential—the associated risks and benefits. Naturally, people will reject what they don’t understand, and the reality is that people don’t like the idea of sharing their data. Would you push the accept button for cookies without knowing any of the above?
A study from the Data & Marketing Association (DMA) highlighted that while over 80% of UK consumers express concern over how their data is used, fewer than 40% fully understand what happens with their personal information. This gap between awareness, understanding, fair usage, and data transparency is what advertisers need to bridge—whether this involves cookie data, AI, or any other digital solution that utilises personal data. People are no longer willing to passively accept vague terms and conditions—they are now demanding clarity and control over their data. This is why the cookieless future is more than a technical challenge; it’s a fundamental test of trust between businesses, their customers, and the middlemen—the advertisers.
The Role of AI in Data Management
As with most things in 2024, marketers can turn to AI to help find solutions. In the case of cookies and how AI can step in to potentially save the day, it all comes down to systems that can connect advertising opportunities to the right people on the right URLs.
The rise of artificial intelligence has opened new avenues for addressing data challenges. Machine learning algorithms can process vast amounts of first-party data to draw patterns and insights, thereby reducing the need for third-party cookies. AI can enrich personalisation without relying on invasive tracking methods, making it the data hero in the mission towards a cookieless world.
For example, AI-driven predictive analytics allow marketers to analyse first-party data and predict future consumer behaviour based on past interactions. These systems can make educated guesses about what content a user is likely to engage with, all without needing to track them across multiple websites.
First-Party Data—A New Frontier
As businesses pivot away from cookies, they will need to invest heavily in first-party data strategies. First-party data is the information collected directly from a company’s customers through their interactions on websites, apps, social media channels, and even in physical stores. Because this data is voluntarily shared, it is not only more ethical but also more reliable and detailed.
However, the real challenge lies in the collection, management, and activation of first-party data. While large organisations may have the resources to build robust data infrastructures, SMEs may struggle to adapt. Companies will need to educate their teams, build new workflows, and integrate their marketing efforts across departments to ensure data is used effectively and responsibly.
The Future of Marketing in a Data-Conscious World
The shift towards first-party data, AI-driven strategies, and heightened consumer awareness means that marketing in 2024 and beyond will look very different from the marketing of the past decade. The days of easy data collection through third-party cookies are in the balance, and businesses that fail to adapt will likely be left behind. But this isn’t just about compliance—it’s about creating a better, more transparent relationship with consumers.
Brands that embrace data privacy as a competitive advantage will stand out in a crowded marketplace. By prioritising trust and using AI to enhance personalisation in a privacy-conscious way, companies can build stronger, longer-lasting relationships with their customers.
The days of easy data collection through third-party cookies are in the balance, and businesses that fail to adapt will likely be left behind.
Perry Braun, Logixx Consulting
An Alternative View on AI as the Knight in Shining Armour
An alternative view to AI being the knight in shining armour is the idea of turning back the clock to traditional methods of buying digital inventory—almost like a significant upgrade on buying media against personas. This approach requires minimal data because you are delivering advertising on websites and content that is relevant to your audience's characteristics and interests.
For example, if you wanted to target the release of a new FinTech product, it’s more than likely your target audience will be reading about similar products and industry news. This method also allows brands to invest in formats that are more engaging and not available within DSPs.
However, it presents the age-old challenge of not being able to guarantee the delivery of impressions. I can see this kind of inventory becoming available if pressures on the data industry grow, fines for advertisers increase, and consumer confidence in data ethics doesn’t improve. Either way, AI will be the driving force in media buying and targeting, provided consumers and courtrooms are content that consumers' rights are not infringed upon.
Brands That Are Leading The Way For A Cookieless World
P&G has been leading the shift away from third-party cookies by focusing on contextual advertising and first-party data. They target consumers based on the environment and content they engage with, rather than relying on personal data tracking. By emphasising direct consumer interactions, they maintain personalisation while respecting privacy. See... my idea of turning back the clock isn't so left field
2. Unilever
Unilever has embraced AI to enhance its management of first-party data, while also being an early adopter of GDPR-compliant systems. Their use of AI helps optimise marketing strategies based on data voluntarily shared by customers, known as zero-party data. This approach reflects their commitment to data transparency and sustainability.
The New York Times was one of the first publishers to move away from third-party cookies, adopting a first-party data strategy that allows them to personalise content for readers. They have built their own solutions to gather data through subscriptions and user accounts, ensuring privacy-conscious advertising practices.
4. Google
The OG of Cookies being used within digital advertising. Google is a leader in developing alternatives to third-party cookies, Google introduced its Privacy Sandbox initiative, which enables targeted advertising while limiting individual user tracking. Google is focused on developing AI models that analyse data in privacy-conscious ways, ensuring advertising can remain effective without compromising personal privacy.
5. L'Oréal
L'Oréal has shifted towards collecting zero-party data, where consumers willingly share preferences through loyalty programs and personalised quizzes. They then use AI to analyse this data and offer precise, personalised marketing while ensuring trust and transparency in how consumer data is handled.
6. Tesco
Tesco has been leveraging its Clubcard loyalty program to collect first-party data, which enables it to track consumer preferences and habits. By analysing this data, Tesco provides personalised offers and marketing content to enhance customer loyalty and increase sales. Their digital channels, backed by customer insights from the loyalty program, help create a more tailored shopping experience.
7. IKEA
IKEA has made a shift towards more personalised marketing by using insights from its loyalty program, digital channels, and in-store interactions. These insights allow IKEA to better understand customer behaviour, enabling more targeted marketing campaigns that resonate with customer preferences. By integrating these insights into their digital platforms, IKEA is enhancing customer engagement through personalised product recommendations.
8. Amazon
Amazon has long been a leader in data-driven marketing by harnessing vast amounts of first-party data to create personalised shopping experiences. Their powerful ad platform allows for highly targeted advertising based on real-time customer behaviour and insights. Amazon’s use of first-party data extends beyond personalising the shopping experience, as they also provide brands with data to enhance ad placements, making their platform a top choice for precise and effective advertising.
How Can Small and Medium Businesses Prepare for a Cookieless Society?
These companies are pioneering their use of ethical data practices, making substantial strides towards a future without third-party cookies. They serve as great examples of how businesses can evolve to prioritise privacy while maintaining personalised marketing strategies. Navigating the transition to a cookieless future presents a significant challenge for SMEs and larger organisations that may not have the resources or innovative strategies like those seen in industry leaders. However, there are several approaches they can take to create effective, non-cookie-reliant campaigns.
Enhance Transparency and Customer Communication
Customers are increasingly aware of the value of their data, and they expect businesses to be transparent about how their information is used. Businesses that proactively communicate their data policies, provide opt-in consent mechanisms, and allow customers to easily manage their data preferences will earn trust and loyalty in the long run.
Invest in First-Party Data
Organisations should focus on collecting first-party data directly from their customers. This involves enhancing customer interactions through surveys, email sign-ups, loyalty programmes, and in-store engagements. By fostering stronger relationships and providing incentives for customers to share their data, businesses can build robust, privacy-first databases.
Partner with Trusted Platforms
Establish partnerships with platforms that prioritise data security and ethical marketing practices. For example, Google’s Privacy Sandbox or Apple’s App Tracking Transparency are initiatives that aim to replace third-party cookies with privacy-focused solutions. By aligning with trusted platforms, businesses can continue to target audiences effectively while ensuring they remain compliant with emerging data regulations.
Leverage Contextual Advertising
Rather than relying on third-party data to target individuals based on their browsing history, SMEs should explore contextual advertising. This involves placing ads in relevant contexts, such as displaying a travel product ad on a travel blog. Contextual ads offer privacy-compliant targeting based on the content the consumer is currently engaged with.
Utilise AI-Driven Insights
AI can help SMEs analyse first-party data to predict future behaviours and trends, offering valuable insights that can be used for personalisation. By relying on AI for predictive analytics, businesses can deliver targeted messages without the need for third-party tracking, thereby maintaining a personalised customer experience in a privacy-conscious world.
Similarities Between Algae-Filled Benches and Data-Driven Marketing
Just as the temperature is rising due to environmental inaction, the pressure is mounting on advertisers who rely heavily on user data. More must be done to ensure a future where data use is ethical and responsible. The liquid trees in urban areas contribute to the fight against the climate crisis. In a similar way, AI could be a solution in the battle against the overuse of data by global advertisers, whose hyper-targeted ads often come too close for comfort or even invade privacy. Just as cities need solutions to reduce carbon footprints, the advertising world must adopt more responsible methods for using data to avoid crossing the line into invasion of privacy.
Countries like China and India prioritise economic growth over green initiatives, highlighting the tension between economic and environmental interests. Tech giants like Facebook and Meta are no different; the CJEU ruling suggests they are prioritising revenue generation over data ethics. The challenge in both industries is clear: find a balance between growth and responsibility—whether it's reducing carbon footprints or ensuring consumer privacy.
Just as environmental inaction has led to rising global temperatures, the lack of proactive steps in regulating data use is causing increasing distrust among consumers. The pressure is heating up on advertisers who rely heavily on personal data to target audiences, and without change, the fallout could be damaging to both industries.
The marketing world is undergoing a rapid evolution, akin to how algae-filled benches are transforming urban environments. AI and new regulations are reshaping how marketers connect with their audiences, and the data challenges of 2024 and beyond are not just about compliance—they are about creating new, ethical ways to engage consumers in an increasingly privacy-conscious world.
While the shift towards a cookieless society may seem daunting, it provides an opportunity to rethink data strategies. Brands that embrace first-party data and AI can not only survive but thrive, creating consumer-friendly, transparent relationships. This isn’t merely a compliance issue; it’s an opportunity to rebuild trust with the public and make marketing a more sustainable and respectful practice.
Ultimately, the key to success in 2024 and beyond will be trust—in how data is collected, processed, and communicated to consumers. Brands that master this balance between personalisation and privacy will lead the way, much like pioneers in climate technology are leading the fight against global warming. The future belongs to those who can foster trust, respect privacy, and adapt to a rapidly evolving world.