We’re (still) in the first-party data era

Last week, Google made headlines by announcing its decision to no longer deprecate third-party cookies in Chrome. While this might seem like a reprieve for marketers who rely on third-party data, I caution against interpreting this as a return to business as usual. The reality is that first-party data reigns supreme, and that isn’t changing anytime soon.

Here’s why.

1) Fidelity

The fidelity of the signal from third-party cookies has always been low. They offer a fragmented view of consumer behavior, which leads to suboptimal targeting and engagement. By staving off the end of third-party cookies, Google hasn’t resurrected them—they remain fundamentally flawed.

To draw a parallel, consider Apple’s launch of Hide My Email, a feature that prioritizes user privacy by masking email addresses. Apple’s move significantly undermined the efficacy of email tracking and third-party data collection. Email marketers stopped being able to rely on the same level of data they were previously accustomed to and had to pivot their strategies accordingly.

In the same way, marketers should accept that third-party cookies are on borrowed time. Instead of clinging to them as a crutch, businesses should invest in first-party data. This will provide a more accurate and robust understanding of consumer behavior, leading to better targeting and engagement.

Sure, marketers can still use third-party data for enrichment, but it should not be the foundation of your strategy. Start with robust first-party data and use third-party data to enhance your customer segments.

2) Control

With third-party cookies slowly fading away, businesses who rely on them are at the mercy of tech giants like Google. This lack of control can be detrimental—just look at what happened when Facebook announced changes to its ad targeting policies earlier this year. Many businesses were left scrambling to find alternative data sources and targeting methods.

In contrast, first-party data puts the control back in the hands of businesses. They can collect and analyze their own data without relying on external parties or facing sudden changes to data policies.

3) Privacy

Consumer privacy concerns have grown steadily over the past few years, leading to stricter regulations like GDPR and CCPA. People are increasingly aware of how their data is collected and used, and many demand more transparency and control over their personal information.

But instead of seeing this as a limitation, marketers should view it as an opportunity. By focusing on first-party data, brands can build trust with consumers by being transparent about their data collection and usage policies.

Don’t get distracted

The era of first-party data is here, and it’s here to stay. Don’t get distracted by Google’s change of heart. Instead, focus on building a robust first-party data strategy that respects user privacy and delivers unmatched value.

Ready to make the shift? Our cookie-free advertising guide offers actionable strategies for effective marketing without third-party cookies.