Triopoly to Benefit from 3rd Party Cookie Deprecation

December 22, 2021
Lytics Ad Campaign Adjustments Due Lack 3rd Party Cookies Dec2021

At the beginning of 2021, digital media experts considered third-party cookie deprecation to be one of their top challenges. It looks like it will remain a challenge for the next couple of years. Per data from Lytics, more US marketing decision-makers believe that the deprecation of third-party cookies will have a large impact in 2023 than believe it will in 2022.

The survey of more than 250 US marketing decision-makers representing companies with more than 250 employees reveals that close to 9 in 10 (86%) rely on data from third-party cookies for their marketing or advertising. This is also evident from other research that shows that about half of senior marketers say that third-party cookies are very important and make up a majority of the data their company uses.

Added to that, more respondents believe that the deprecation of third-party cookies will have at least a large impact on their campaigns in 2023 (56%) than in 2022 (50%).

Adjusting for Lack of Third-Party Cookies

To compensate for the lack of third-party cookies, respondents will be making adjustments to their advertising campaigns. Most are planning to spend more on platforms like Facebook, Instagram, Amazon and Google (62%) — the same companies that already account for close to two-thirds of total US digital ad revenue this year

Respondents also plan to spend more on their own channels, such as email and their website (51%). And, while many advertisers are diverting some of their linear TV budgets towards CTV advertising, almost half (49%) of respondents plan to spend more on TV advertising due to lack of third-party cookies.

Of course, these changes will also affect organizations’ data strategies. Many respondents believe they will be working more closely with an ad/buying agency to test new technologies (54%), while others will need to research new ways of reaching audiences (49%) and will need to learn new systems or software (47%).

Using First-Party Data

Unsurprisingly, third-party cookie deprecation has made first-party data more valuable than ever in marketing, with 92% of respondents agreeing as such. Marketers are already using first-party data to create more personalized content on their website, predict customer behavior and create more personalized content in their email.

Although advertisers are making efforts to enhance their first-party data, the survey shows that first-party data strategies are being hindered by factors such as needing to create a holistic view of the customer, lack of data and insufficient data collection and insufficient data quality.

Even though the majority of marketing decision-makers are prepared to phase out third-party cookies, there are still some who are either not prepared to phase them out (14%) or are not sure if they are (17%). Some of this hesitance might be because almost half anticipate that the end of third-party cookies will have a very large (18%) or large (29%) impact on their marketing ROI.

About the Data: Findings are based on an October survey of 256 marketing decision-makers from US companies with more than 250 employees.

Explore More Articles.

Marketing Charts Logo

Get more charts in your inbox.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This