In a move that surprised much of the digital marketing world, Google recently announced its decision to retain third-party data, abandoning the much-anticipated cookie deprecation originally set for 2022. The tech giant is proposing a new approach in Chrome that will allow users to make an informed choice about how their data is handled, with the ability to adjust that choice at any time.
For marketers and media professionals, the news offers a brief reprieve, allowing them to maintain their current strategies. However, it does little to resolve the underlying issues that have fueled the push towards a cookieless future, such as increasing privacy concerns and the tightening grip of global data regulations. Marketers find it harder to drive growth, reach new customers, and maximise media efficiency as reliance on cookies becomes less effective.
In an industry increasingly focused on accuracy, privacy compliance, and deeper customer insights, first-party data is emerging as the optimal choice for marketers. In this article, we’ll compare first-party and third-party data, and explore strategies to help future-proof campaigns in an ever-evolving world.
Third-party cookies are small data files that websites place on a user’s device through an entity other than the website the user is visiting. These cookies have been widely used in digital advertising to track users across multiple websites, enabling advertisers to build detailed profiles of user behaviour. This information is then used to deliver targeted ads, retarget users who have previously shown interest in a product, and measure the effectiveness of advertising campaigns.
However, the use of cookies has raised significant privacy concerns. As consumers become more aware of data privacy issues, and regulations like the GDPR and CCPA come into play, the reliance on third-party cookies has been increasingly questioned. Browsers like Safari and Firefox have already implemented restrictions on third-party cookies, and while Google’s decision to retain them in Chrome may provide temporary relief, the broader industry is clearly moving towards more privacy-centric approaches.
First-party data is information that an organisation collects directly from its audience: customers, website visitors, app users, and social media followers. As it’s collected through direct interactions and with user consent, it’s considered more reliable and privacy-compliant.
There are several methods to collect first-party data, including:
With first-party data, brands can combine insights from various touchpoints and gain a comprehensive view of the customer journey to inform better personalisation, segmentation and engagement strategies.
First-party data allows marketers to craft highly personalised experiences based on direct customer interactions. For example, a retail brand can use first-party data to recommend products based on a customer’s previous purchases or browsing behaviour. By leveraging this data, brands can create tailored content and offers that resonate with individual customers, helping them to feel understood and valued. This personalised approach increases engagement and also strengthens brand loyalty.
The direct nature of first-party data ensures that it is more accurate and reliable than data gathered from external sources. This data reflects actual user behaviours and preferences, allowing marketers to make informed decisions that lead to more effective campaigns and optimised ROI. Unlike third-party data, which often involves assumptions, first-party data provides a more transparent, more accurate picture of customer intent.
Collecting first-party data transparently and with user consent ensures compliance with privacy regulations such as GDPR and CCPA. Brands that prioritise data privacy and communicate clearly with customers about how their data will be used build trust and enhance their reputation, strengthening customer relationships in the long term.
First-party data offers immediate insights into current customer behaviours and purchase intent. With access to real-time information, companies can quickly respond to shifts in customer preferences, emerging trends, or market changes. This agility allows brands to keep their campaigns relevant and impactful, ensuring that they can adapt to the dynamic nature of consumer behaviour.
First-party data provides a comprehensive view of the customer journey, helping brands to integrate data from various touchpoints. By combining insights from website visits, app interactions, and social media engagement, marketers can develop a deeper understanding of their customers. Greater personalisation, segmentation, and targeting capabilities ultimately lead to stronger customer relationships and higher-performing campaigns.
The digital marketing industry has been preparing for a cookieless world ever since Google announced its initial plans to phase out third-party cookies. Even though Google has decided to retain them for now, many marketers have recognised that the effectiveness of third-party cookies will diminish over time. This realisation has driven significant marketing innovations and a shift towards alternative data strategies.
One of the most significant changes has been the increased reliance on first-party data as brands focus on building and nurturing their own data ecosystems. This shift is often supported by enhanced customer engagement tactics like loyalty programs, email marketing, and exclusive offers, allowing companies to gather reliable data directly from their customers.
Retail Media Networks (RMNs) have also gained traction as a powerful tool for retailers to monetise their first-party data. By offering brands the opportunity to advertise directly within their digital properties, such as e-commerce sites and apps, RMNs allow for highly targeted ads where customers are in shopping mode, improving campaign relevance and effectiveness.
Another key development is the adoption of server-side tracking solutions. Unlike traditional client-side cookies, server-side tracking collects and processes data on the company’s servers, providing a more secure and privacy-friendly approach. This method reduces the impact of ad blockers and browser restrictions, resulting in more accurate data collection.
Marketers are also leveraging advanced data management platforms (DMPs) and customer data platforms (CDPs) to unify and analyse their first-party data. Retail brands, for example, are integrating in-store and online customer data to create a seamless omnichannel experience, which enhances personalisation and improves the accuracy of customer insights, leading to more effective targeting and higher ROI.
In the publishing sector, the focus has shifted toward contextual advertising, which targets ads based on a webpage’s content rather than tracking user behaviour across sites. This approach aligns with privacy regulations while ensuring that ads remain relevant and effective, even without third-party cookies.
Marketers looking to fully capitalise on the power of first-party data must adopt strategic methods for collecting, analysing, and using this valuable information. Those who prioritise data privacy, compliance, and integration will be best positioned to unlock the full potential of first-party data and drive impactful marketing results.
Below are key strategies that will help marketers leverage first-party data for maximum impact:
Below are key strategies that will help marketers leverage first-party data for maximum impact:
To harness the power of first-party data, marketers should implement robust collection strategies across all touchpoints. This includes:
In an era of stringent data privacy regulations, marketers must safeguard customer data by:
Marketers are increasingly turning to privacy-friendly identifiers, such as Google’s Privacy Sandbox and Apple’s SKAdNetwork, to enable ad targeting and measurement without compromising user privacy. These tools are essential for maintaining compliance while delivering effective, personalised marketing.
Integrating first-party data with other data sources can be highly effective for more comprehensive audience profiling. Key steps include:
If your brand or company lacks the infrastructure to collect its own first-party data — such as FMCG brands that rely on distributor networks and offline retail channels — it’s worth collaborating with RMNs and other networks. These partnerships can help you understand your audience better, capture valuable traffic, and begin building a robust first-party data strategy.
panda ads showcases the power of retail media networks in leveraging first-party data. The platform helps brands reach valuable customers by using foodpanda’s own customer data to connect businesses with millions of tech-savvy shoppers who prioritise convenience. By leveraging this rich first-party data, panda ads enable highly targeted campaigns that resonate with consumers’ preferences, enhancing ad relevance and improving user experience while providing a brand-safe environment for advertisers.