Marketers remain unprepared for the widescale disruption to online advertising once Google rolls out its new Chrome browser, with most professionals planning to continue to use third-party cookies for the foreseeable future, while millions of consumers plan to opt-out.
New research conducted by global digital transformation business Apply Digital, The Cookieless Revolution, shows almost all (99%) businesses still use cookies to drive some or part of their online advertising strategy and – perhaps less surprisingly – 70% of senior marketers support Google’s decision to continue supporting them.
However, a separate Apply Digital study – published in October – revealed that a substantial 38% of UK consumers say they intend to opt out of third-party cookies when a single opt-in is introduced to Chrome next year – and around a quarter remain, as yet, undecided.
Meanwhile, The Cookieless Revolution research reveals 61% of marketers believe Google’s decision will significantly impact their digital strategies by 2025, notably with 70% of retailers expecting disruption compared to just over half (52%) of FMCG marketers.
A third of respondents are worried about increased customer acquisition costs and this concern is tied to the potential loss of precise targeting capabilities that third-party cookies provide.
Apply Digital chief commerce officer Matt Gould said: “It might look like there will be a future for cookies on Chrome, but ultimately they are a fading technology. It would be wise not to rely on third-party data too heavily and instead explore new and better options such as behavioural AI mapping tools that will better define the future in the long-term.”
Nevertheless, the industry claims it is preparing for a future that is less reliant on third-party cookies. Nearly all (94%) senior marketers insist they are ready to transition their strategies away from third-party data and 79% have begun implementing alternatives.
Yet even with this willingness to change, only 8% of senior leaders say they face no obstacles in making this happen – leaving 92% of businesses with concerns around their ability to fully execute on first-party data.
While a third of respondents have invested in first-party data collection and technologies, a third (35%) report difficulties in persuading users to share their data.
Moreover, only 8% admit they are ready to execute owned data strategies, with 14% reporting challenges integrating this data with their CRM systems to allow for effective personalisation.
Apply Digital chief technology officer Dom Selvon concluded: “In the coming years, identity – as a way for businesses to understand and engage with their customers – could become one of the most transformative forces on the Internet, potentially rivalling AI in its impact.
“As third-party cookies are phased out and customer acquisition costs rise, businesses need to rethink their approaches. Many are recognising that prioritising customer retention may offer a more sustainable path to growth than an endless pursuit of new audiences.
“Yet our research reveals that disconnected data leads to disconnected decisions. When data remains fragmented, businesses face challenges in delivering the personalised experiences that customers expect. The end of third-party cookies means businesses need to adapt – and fast.”
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