Cookies, in its simplest definition, small pieces of data sent by the web server and stored on the user's computer, have been used by companies for many years to monitor the online behavior of consumers.
Thanks to cookies that help brands identify their customers, targeted advertisements and campaigns can be created.
However, this convenience has a price. Especially in recent years, when the sensitivity about personal data security has increased, consumers are increasingly concerned about who collects this data, how their online behavior is monitored, what companies do with this information, and to whom they can sell it.
- A recent Pew Research Center (Pew) survey showed that 79 percent of users in the US are concerned about the way companies use their personal data.
- According to the report, 41 percent of consumers in the US regularly delete cookies, and 30 percent use ad blockers on their personal devices.
This increasing trust problem on the consumer side has also prompted regulators to act. The General Data Protection Regulation (GDPR), which was implemented in 2018 and covers EU countries, has a very comprehensive content on cookies.
Increasing calls on the regulatory side to fully increase ad targeting in Europe, on the other hand, were met by both the US states of Virginia and California. Perhaps the most important step in this regard came from Google. Google Chrome has announced that it will disable third-party cookies by 2023.
The disappearance of third-party cookies from our lives does not mean that personalized advertising practices will end, on the contrary, a new era in advertising management is at hand with better quality data.
The Rise of Self Identified Data
What does it take to take advantage of data-driven targeting without getting caught up in the privacy issues (and regulatory hurdles) associated with 3rd party cookies? Answer: Self Identified Data.
- Self Identified Data, unlike third-party data, which is collected and recorded by so-called third-party sites other than the websites visited by users, which allows content and advertising to be edited; accordingly, are data that are intentionally and proactively shared directly with the brand by consumers.
- Self Identified Data can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize him.
- Many brands are already using mechanisms like surveys, quizzes, or interactive social media campaigns to collect Self Identified Data that provides specific insights into consumer preferences.
- Using this data gives customers more control and transparency over exactly what information about them is collected while giving companies access to much more useful information that allows them to deliver personalized offers much more effectively.
Check out our blog posts and learn more about Self Identified Data
- How to build customer DNA with self identified data
At this point, it's important to remember that the real issue with third-party cookies isn't personalization.
Today, consumers are more and more interested in personalized advertising offers, and Self Identified Data allows for much more targeted campaigns at this point, eliminating privacy issues compared to third-party data.
A recent survey of more than 5,000 global respondents reveals a significant 33 percent year-on-year increase in the number of consumers interested in personalized offers between 2020 and 2021.
While customers are happy to see ads that match their needs and receive campaign offers related to it, the collection of their personal data in a non-transparent and insecure manner and then selling them to the highest bidder is something that no consumer wants.
Self Identified Data Offers both greater transparency and more effective personalization.
The Future of Customer Interaction
The use of Self Identified Data is becoming more and more common. Consumer demand for a more transparent and secure user experience is increasing at this point, and expectations for highly personalized experiences are more important than ever.
At the same time, increasingly strict regulatory arrangements make this situation inevitable. Marketers looking to adapt to the new era are increasingly investing in a Self Identified Data approach.
According to a recent report from Forrester, one in four CMOs will have adopted the Self Identified Data-use approach by the end of 2021 and will run marketing campaigns to take advantage of detailed data provided by customers for free instead of third-party cookies.
These developments in the use of data may seem like a minor technical change in the marketing world. However, this change essentially means a change in approach that is much more important for businesses about their customers' data.
While cookies are running in the background, they are passively collecting information, often for use in obscure, unethical ways. Thus, Self Identified Data provides both greater personalization and greater control for the end-user.
Ultimately, we can see Self Identified Data not only as a way to do targeted ads or email campaigns but also as a new step towards transforming the way companies interact with (and respect) their most valuable stakeholders, their customers.
Data Collection with the End of 3rd Party Data
With many different strategies, you can easily collect the data you need without using 3rd party data and take customer-oriented marketing steps.
To gear up for the future, with the right tools and professionals in data collection, send us an email today at email@example.com and let’s design your company’s data strategy together!