By Gerry Bavaro, Chief Strategy Office at Merkle. Merkle were shortlisted in the ‘Most Innovative Use of Data in the Cloud’ category at the 2023/24 Cloud Awards.

Whispers of a cookieless future have haunted our industry for years now – a move away from traditional third-party cookies, to a more liberated approach known as ‘cookieless marketing’.

While this shift has garnered some negativity from marketers, it offers businesses more control over their data and empowers customers to better shape their online experiences.

Let’s explore how this transition is actually great for brands as it redefines data ownership, deepens understanding between businesses and their customers, and puts individuals in charge of their digital interactions. We’ll also share how the cloud is helping make this challenge easier.

Take charge of your data

Traditionally, businesses heavily relied on third-party cookies to track user activity and understand consumer preferences. However, with major internet browsers like Google Chrome and Apple Safari enabling browsing across the web, and major walled garden media publishers like Google and Facebook owning most online data for targeting, this gave brands blind spots on who their audiences are. This hid visibility into specific individual preferences that make customers tick and can be used as data for targeting.

In this new landscape, businesses have the capacity to regain control over data on customers and prospects. Cloud-based solutions provide a secure and centralized space for data storage, reducing dependence on third-party cookies and making it easier than ever to organize, grow, enhance and maintain customer and prospect records. This move not only improves data security but also aligns with the increasing demand for transparent and ethical data practices.

How to take action

Start by asking your customers for consent and thinking of ways to provide valuable experiences in exchange for the data you want to collect from them to understand and serve them better, keep them happy, and loyal. Find areas to collect different types of first-party data that can be used to enhance the customer experience.

Understand your customers better

The move towards cookieless marketing isn’t just about data ownership. It’s about developing a richer understanding of your customers and establishing a new and better universe of prospect data for insights and targeting (those consumers who are not yet your customers). Beyond simply owning the data from experience, marketing and advertising efforts, this transition helps companies establish a direct connection with their audience. People want simple, personalized experiences and they expect to be recognized by the brands they love. By collecting and analyzing first-party data obtained directly from customer interactions and bolstered further with offline third-party data as well as partner second-party data businesses can gain a deeper understanding of customers and prospects and best tailor messaging to meet those needs.

We recommend linking all data to a persistent enterprise person-based ID in one place, which we call a customer profile, which paints a full picture of individual customers, from behaviors and preferences to personally identifiable information. This holistic view of customers helps businesses identify patterns, preferences, and behaviors more effectively. Armed with this knowledge, marketers can adapt their strategies to meet evolving customer expectations.

This also gives them the central hub of data needed to create target audiences and connect this to any activation platforms and channels for targeting based on the rise of person-based ad ecosystems (Like Netflix, Tik Tok, NBCU, Disney, long-standing platforms like Facebook and Google), and martech platforms (Like customer data platforms, email, site personalization platforms).

Cloud-based tools play a crucial role here, as the central audience identity and data hub facilitating the integration of data from various sources. The collaboration between the cloud and data-driven audiences and insights enables businesses to respond swiftly to changing customer needs. By understanding their audiences on a granular level, companies can anticipate requirements, customize offerings, and foster long-term customer loyalty.

How to take action

Customer profiles sound great in theory, but here’s how to get started. An identity solution like Merkury by Merkle uses a person ID, which combines everything your organization knows about an individual within your cloud-based database and combines third-party data and second-party partner data to help paint that full picture that we talked about earlier. This can also recognize unknown site visitors without the use of third-party cookies. All these profiles are always up to date within your cloud data environment or modern profile management and experience orchestration platforms like CDPs (Customer Data Platforms) and can be accessed by teams across your org that need it, from marketing to sales and service. No more duplicate records or heavy update lag times. No disparate customer or prospect IDs “rented” from marketing software or walled gardens like Google and Facebook, based on third-party cookies or opaque IDs and data you don’t get granular access to.

Unlike other providers, Merkury has the best anonymous site visitor match rates in the industry to a person ID (50%+) and lets organizations own this data.

Empower customers through consent

Another significant benefit of cookieless marketing is the empowerment it offers to customers and prospects. Traditional cookie-based tracking often left users feeling overwhelmed by ads that didn’t align with their interests. Now, customers can have explicit control over their online experiences, with the ability to provide preferences and opt-in to personalized content, or opt-out just as easily.

This emphasis on transparency and user consent nurtures a more respectful relationship between brands and consumers while allowing brands to comply with privacy regulations more seamlessly. Customers can now communicate their preferences, enabling brands to deliver relevant content and promotions while respecting user boundaries. This mutual understanding contributes to a more positive online experience, where customers feel valued instead of intruded upon.

How to take action

The power of consent extends beyond personalized advertising. Customers can actively shape their online journey, indicating the type of content they want to see, data they want collected or not, and the level of personalization they are comfortable with. This not only enhances the user experience but also builds trust between brands and consumers. To get started, ask them these questions and lay out a preference center to best manage these selections. To ensure your organization can properly manage content and opt-ins and outs, establish a single persistent person-based enterprise ID in your cloud data environment so you can best organize and manage this new world of consent, regardless of what channel, service, and experience it comes from across the enterprise.

Address privacy concerns more easily

As privacy concerns take center stage, cookieless marketing in the cloud and using a single person-based ID and linked data emerges as a solution that aligns with evolving regulations and consumer expectations. By prioritizing user consent and data unification against a persistent person-based ID, and minimizing reliance on third-party cookies, businesses can navigate the complex terrain of data privacy more effectively.

Moreover, the cloud’s ability to facilitate data anonymization and encryption adds an extra layer of protection. This ensures that even as businesses leverage customer data for insights, or licensing of third-party or second-party partner offline data for enhancement and targeting, individual privacy remains intact as proper use can be managed with secure data handling, anonymization and encryption methods.

How to take action

In an era where data breaches make headlines, the security features of the cloud provide a reassuring framework for both businesses and their customers. A cloud-based database enhances privacy by employing robust security measures such as encryption and access controls, safeguarding sensitive information from unauthorized access. Additionally, centralized management in the cloud allows for streamlined compliance with privacy regulations, ensuring data handling and identity unification and management across various data sources aligns with the highest standards.

Looking ahead for success

As we embrace the future of marketing, the intersection of privacy, personalization, and customer control becomes an increasing need. Cookieless marketing powered by the cloud is not just a trend; it’s a strategic imperative for businesses seeking sustained success.

By taking ownership of data, understanding customers on a deeper level, and empowering them through consent, businesses can forge genuine connections with their audience time and time again. The cloud emerges as a central player in this transformation, providing a secure and flexible environment for person ID-based data management and analysis.

As businesses embark on this journey, it’s essential to view the shift towards cookieless marketing as an opportunity rather than a challenge. Embracing customer-centric practices not only aligns with ethical standards but also positions companies as pioneers in a landscape where customer trust is paramount.