After years of teasing out the impending deprecation of third-party cookies, it turns out Google is keeping cookies after all. While marketers can breathe easy now, the industry still has every reason to limit their reliance on third-party cookies and prioritize efforts to adapt to new ways of tracking and measuring user behavior.
This presents dynamic challenges and opportunities for retail media networks in particular, as the readiness of retail media measurement remains under a microscope. As the digital landscape continues to evolve, agile marketers who are prepared for a world with (or without) cookies will gain a competitive edge and set themselves up for success — regardless of what the future might hold.
How is Retail Media Rising to the Challenge?
Amid increasing privacy restrictions and 40% of Chrome users opting out of third-party cookies already, it’s imperative for marketers to explore alternative strategies in order to maintain their ability to gather valuable data and insights. The retail media industry is preparing for the future by implementing several key strategies:
- First-party data (1PD) and first-party cookies: Retailers are focusing on strengthening their first-party data collection methods. First-party cookies, which are not affected by potential cookieless changes, play a crucial role in maintaining user tracking and personalization efforts. First-party cookies and server-side tracking are essential for maintaining user identification and tracking in a cookieless world. While some of those ‘off-the-shelf’ solutions can be used immediately, customization in implementing these solutions is often required to ensure that valuable, consented first-party data is captured.
- Insights platforms: Investing in robust insights platforms that can collect, analyze and utilize first-party data effectively will be critical. These platforms help retailers gain actionable insights from collected data, ensuring they can still deliver targeted and relevant advertisements based on the data.
- Web analytics: Having a web analytics platform that is robust and able to work with first-party data is key to measuring website performance — from how customers enter the website, how they browse content and products all the way to purchase. Both Google Analytics (GA4) and Adobe Analytics are ready and designed to work without cookies utilizing server-side tracking, first-party identifiers and event-based tracking.
- CDPs: A Customer Data Platform is a valuable tool for a retail media business to unify its customer view from the rich first-party data that comes from being a retailer. These platforms offer features such as data integration, machine learning and real-time analytics, which are essential for making sense of first-party data and driving marketing success in a cookieless world. By leveraging these tools, retailers can continue to deliver personalized and relevant advertisements from brands, maintaining their competitive edge in the evolving digital landscape.
- Clean rooms: Data clean rooms provide a secure environment where retailers can match their first-party data with other data sources without compromising user privacy. Clean rooms facilitate collaboration and data sharing with brands while maintaining compliance with privacy regulations. Retailers and brands can perform advanced analytics, develop detailed customer segments and measure the impact of marketing efforts where other marketing channels are losing measurement capabilities.
- Insights and reporting: As digital marketing measurement loses its once “golden” attribution methodology, the ability to measure the effectiveness of a brand’s advertising will become difficult and fragmented. Retailers have an opportunity to build upon their data to form their own reporting suites and insights platforms, to measure marketing efforts but also to provide brands with valuable audience insights and consumer behaviors.
Preparing for the Road Ahead (With or Without Cookies)
Although Google has decided against killing cookies (for now), the industry is still moving toward less reliance on cookies amid increasing privacy regulations. Investing in cookieless strategies remains critical for marketers and retailers who want to compete in the years to come.
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In order to maintain effectiveness in a rapidly changing landscape, retail media networks must adapt by prioritizing first-party data, investing in self-developed insights platforms and utilizing data clean rooms to enhance customer and brand relationships.
Ultimately, this leads to more effective and privacy-conscious marketing strategies, redefining how an RMN connects with and understands customers while paving the way to a new era of measurement and engagement.
Simon Wiggins is Director of Media Engineering at CvE. He is a data scientist and has over 12 years’ experience, including MediaCom where he headed up Data Analytics. Working on global brands including Dell, Sky TV, Tesco, Paddy Power/Betfair, Ulta Beauty, Mars, Nectar 360 and Morrisons, Wiggins has experience across multiple platforms including Google, Adobe, AWS, Azure, and Snowflake. Yael Heffetz is a media consultant with vast experience in GAM and other search-driven platforms, combining technological expertise, analytical skills, and strategic understanding to navigate the complexities of modern marketing. Her background allows her to evaluate and integrate new technologies, collaborating with IT, BI and marketing teams.
