The Death of the Cookie: Understanding Internet Privacy - Part I

As the third-party digital cookie begins to crumble, what does that mean for marketing professionals? In today’s episode of Aligned, Sean and FitzMartin’s Revenue Operations Director WIll Riley discuss the implications of upcoming internet privacy changes and outline tactics to maintain effective digital marketing in 2023. 

Cookies and Privacy - What’s the difference?

• Privacy involves a company’s intent with your data and what it does with that data.
• In contrast, cookies have been an addendum to privacy policies over the years, dictating what specific data companies store and how that data is used for marketing.

The year 2022 will define privacy laws. 

• We’re entering an era of technological responsibility because anyone who visits your website can allow (or disallow) how you aggregate and use their data.
• Companies now have both a legal liability and a corporate standard they must maintain - not only can a company’s data collection be shut down by the government, but the companies who run advertising platforms can as well.
• Predominantly, digital marketers spend money through Facebook, Instagram, and Google. Because these platforms are all run by just two companies (Meta and Google), you must comply with their standards to maintain website traffic.

First-party cookie versus third-party cookie:

• First-party cookies are stored from a website the user visits directly, like when you search for products on Amazon. 
• Third-party data is data tracked from another domain. So, if Amazon (hypothetically) sold your data to another company, that would be third-party cookies.
• Consumers tend to like first-party cookies because they directly benefit the user. With Amazon, it’s helpful to see recommended products and recent searches because of the data they collect. 

In 2023, Google Chrome (which accounts for 80% of data traffic) will completely phase out third-party cookies.

• This will bring a fundamental shift in developing digital campaigns. Marketers will have to adjust how they spend digital advertising dollars without precedent to rely on for successful campaigns.

Strategies for companies to start implementing:

• It comes down to where you get your data. Are you collecting data directly from a source or buying it from elsewhere? 
• If the latter, that decision might no longer be an option. Take practical measures to prepare and stop relying exclusively on third-party data. 
• Start shifting advertising strategies to pull data directly from consumers.
• If you invest in the right technology and are upfront with your member base, you’re already ahead of the game.
• Above all, you must focus on a sales and marketing alignment. Buying data is a crutch; marketing moves towards a more authentic experience. 

Episode Resources:

• FitzMartin’s standardized compliance policy is an incredible foundation that informs you what you need to include in a privacy policy with these new privacy changes. If you want to be ahead of the game, download our compliance foundation PDF here!
• Aligned is a podcast for executives of emerging middle-market companies and executives pursuing growth and looking for new levers to pull. 
• Order Sean’s book Shift.

To connect with Sean Doyle, find him on LinkedIn, or learn more about FitzMartin on the company web page.