[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/#Article","articleBody":"What do third-party cookies,\u00a0Tim Berners-Lee, and\u00a0Sun Tzu\u00a0have to do with\u00a0the world of\u00a0customer engagement?\u00a0The answer:\u00a0They highlight the\u00a0current\u00a0chaos\u00a0and\u00a0potential\u00a0opportunities facing today\u2019s global enterprises.\u00a0Here\u2019s why.\u00a0\u00a0\nFor years, third-party cookies\u00a0represented an opportunity for\u00a0marketers and advertisers.\u00a0Now,\u00a0Google\u00a0plans to\u00a0remove\u00a0this cookie\u00a0functionality,\u00a0causing a chaotic shift in\u00a0many brands\u2019\u00a0media\u00a0strategies.\u00a0\nMeanwhile, the\u00a0inventor of the world wide web,\u00a0Tim Berners-Lee,\u00a0is focused on\u00a0data privacy. He\u2019s\u00a0championing\u00a0the concept of\u00a0data sovereignty and the foundation of trust\u00a0as\u00a0an opportunity to\u00a0solve\u00a0the\u00a0chaotic experience\u00a0the internet\u00a0has become.\u00a0\nAnd the famous\u00a0Chinese philosopher Sun Tzu\u00a0is attributed with\u00a0saying: \u201cIn the midst of chaos, there is also opportunity.\u201d It\u2019s a quote\u00a0that\u00a0enterprises \u2013 and especially their IT departments \u2013should take to heart\u00a0given these\u00a0trends.\nCookies are all pieces of code that are saved by websites\u00a0onto a user\u2019s browser, creating insight and, in some cases, questions of the right to privacy.\u00a0There are several types of cookies, but the two\u00a0generating the most\u00a0buzz\u00a0right now are\u00a0first-party and third party cookies.\u00a0\nThe\u00a0cookies on the table: First, second, and third-party data defined\nThe definition of first-party data or a first-party cookie: When you visit a web page, the company that owns the site\u00a0can ask your permission to\u00a0install\u00a0a cookie.\u00a0When you consent, the site places a small file in your browser cache\u2014this is a first-party cookie.\u00a0The code in the file\u00a0interacts with the site and\u00a0helps personalize your experience over time.\u00a0\u00a0\u00a0\nThe definition of third party cookies or third-party data is\u00a0files that are\u00a0installed in\u00a0your browser\u2019s cache\u00a0by advertisers and partners of the company that owns the site. They use these files to\u00a0enable tracking of the user\u2019s digital behavior\u00a0and to serve ads. This kind of data is more indirect.\u00a0\u00a0\nThe definition of second-party data is a little trickier: The definition is data acquired from another company that collected the data. The specifics of how it is gathered may vary.\nDon\u2019t choke: The\u00a0end is near for 3rd party cookies\u00a0\nIn an event dubbed \u201cthe\u00a0cookiepocalypse,\u201d\u00a0Google had set January 2022 as its deadline for removing third-party cookie\u00a0functionality\u00a0from its Chrome browser. However, they have made a subsequent announcement that it won\u2019t be until at least 2023.\nWhy is this a big deal?\u00a0\nFirst, Chrome dominates the global desktop browser market share.\u00a0So even though Apple\u2019s Safari\u00a0and Mozilla\u2019s Firefox\u00a0already removed third-party cookies, they still work on the\u00a0world\u2019s\u00a0most popular browser.\u00a0\nSecondly, third-party cookies\u00a0have helped\u00a0build\u00a0digital advertising\u00a0into a\u00a0financial\u00a0juggernaut\u00a0that accounted for\u00a0total spending over\u00a0$300 billion in 2020.\u00a0As the global pandemic proved, businesses need an effective digital strategy to stay relevant and resilient.\u00a0Now, one of the\u00a0strategy\u2019s\u00a0core tactics is going away.\u00a0\nLastly,\u00a0even Google admits\u00a0the use of third-party cookies contributes\u00a0to an erosion of customer trust. Third party cookies going away is an inevitability.\nIn a\u00a0recent\u00a0blog post about the privacy-first web, the company\u00a0said:\u00a0\u201cIf digital advertising doesn\u2019t evolve to address the growing concerns people have about their privacy and how their personal identity is being used, we risk the future of the free and open web. That\u2019s why last year Chrome announced its intent to remove support for third-party cookies...\u201d\u00a0\n \nHow to earn customer trust: The steps from search to sale\n   Wondering how to earn customer trust in a wary world? From search optimization to seamless engagements to great service, we've got answers.  \nThe pendulum swings toward personal data control\nWhile\u00a0Google\u00a0claims\u00a0it\u00a0prioritizes\u00a0data privacy,\u00a0entrepreneurs like\u00a0Tim\u00a0Berners-Lee\u00a0believe a lot more can be done.\u00a0He envisions a privacy-first web system\u00a0where\u00a0companies or governments\u00a0can\u2019t\u00a0harvest\u00a0personal data\u00a0at all.\u00a0\u00a0\nInstead,\u00a0individuals place their\u00a0information in\u00a0secure\u00a0personal\u00a0online data stores (PODs). If an\u00a0organization\u00a0wants\u00a0to\u00a0access\u00a0a\u00a0POD,\u00a0it needs to request permission\u00a0from the individual.\u00a0Berners-Lee\u00a0founded a company\u00a0called\u00a0Inrupt\u00a0to develop these PODs\u00a0and\u00a0reinvent the internet experience based on\u00a0this\u00a0data sovereignty vision.\u00a0\nWhat\u2019s the link between\u00a0Google and the founder of the internet? Even though they\u2019re\u00a0on entirely different tracks,\u00a0they both recognize one\u00a0megatrend:\u00a0customer\u00a0demand for personal data control is\u00a0gaining steam.\nWhat should enterprises do about personal data\u00a0now\u00a0to address this demand?\u00a0\u00a0\nWhose job is it anyway? Marketing, meet your new friend, the IT department and CDP\nTypically, the\u00a0marketing\u00a0department\u00a0is the primary\u00a0stakeholder when issues arise with digital ad spend. There\u2019s no question\u00a0Google\u2019s third-party cookie\u00a0demise\u00a0will cause\u00a0marketing teams\u00a0to\u00a0change\u00a0media\u00a0strategies.\u00a0\nYet, it\u2019s important to\u00a0understand\u00a0that\u00a0third parties will still be able to track users \u2013 the method will just be different. \u00a0\nAs an alternative to third-party cookies,\u00a0Google\u00a0will offer\u00a0a new system\u00a0called\u00a0FLoC.\u00a0This\u00a0technology\u00a0enables brands to advertise to cohorts of\u00a0consumers\u00a0grouped by\u00a0demographic and behavior data. The bottom line for marketers:\u00a0Third-party data will still play a role in understanding customer behaviors\u00a0and\u00a0digital ad\u00a0targeting.\u00a0\nThe consumer demand for personal data control has enterprises shifting away from customer acquisition investment based on ad campaigns fueled with third-party data. Instead, they\u2019re prioritizing efforts to extend the lifetime value of existing customers.\nThis\u00a0intensified focus on retention\u00a0opens\u00a0opportunities for\u00a0IT departments.\u00a0\n \nHow a customer data platform unlocks\u00a0the\u00a0power of\u00a0personalization\u00a0\n   The power of personalization, powered for business: Customer data platform (CDP) solutions help brands build on foundational insights to go beyond marketing\u00a0and\u00a0impact the full customer journey.  \nThree key opportunities\u00a0IT\u00a0teams can seize right now\u00a0\nIn many organizations,\u00a0IT is\u00a0responsible for adopting digital technologies across\u00a0the\u00a0business, maintaining current infrastructure,\u00a0and transforming digital processes.\nOnce considered an internally focused team, IT is increasingly impacting the world of customer engagement. Data sharing is a big reason for this change.\nAccording to\u00a0a recent Oxford Economics survey\u00a0of business and IT executives,\u00a075% said\u00a0they\u2019re focused on internal customer data sharing strategies.\u00a0Executives who viewed their organization as\u00a0customer-centric\u00a0said data sharing created stronger connections with customers.\u00a0\u00a0\nHere are three examples of how IT can\u00a0seize the opportunity to\u00a0help build these connections:\u00a0\nAccelerate \u201cknow your customer\u201d initiatives Unifying\u00a0data from across the organization into\u00a0holistic, accurate, and rich customer\u00a0profiles\u00a0helps\u00a0uncover insights\u00a0that drive\u00a0sales and\u00a0strengthen\u00a0customer loyalty.\u00a0Yet this\u00a0unification\u00a0is\u00a0a\u00a0complex\u00a0endeavor\u00a0given the velocity, volume, and variety of customer\u00a0data\u00a0collected by enterprises today.\u00a0Increasingly,\u00a0IT teams\u00a0are tasked with\u00a0bridging\u00a0these silos and creating\u00a0more\u00a0comprehensive views\u00a0of customers.\nOrchestrate\u00a0end-to-end customer experiences Retention rates will suffer if\u00a0any\u00a0engagement\u00a0across marketing, commerce, sales, and service\u00a0fails to meet customer expectations.\u00a0Yet, thanks to data and process silos, the level of personalization\u00a0can vary dramatically from one customer engagement to the next.\u00a0IT\u00a0teams\u00a0are\u00a0in a prime position to\u00a0transform digital processes for CX\u00a0so\u00a0every\u00a0engagement throughout the customer lifecycle\u00a0can be\u00a0personalized, trusted, and connected.\nGovern\u00a0customer data collection and processing Marketing teams\u00a0focus on\u00a0a customer\u2019s consent to terms of service and communications preferences.\u00a0Yet\u00a0brands collect and process\u00a0customer data\u00a0in many other interactions.\u00a0For example, warranty information\u00a0is still a form of\u00a0data collection.\u00a0In every instance,\u00a0data privacy\u00a0regulations require\u00a0enterprises to honor the purpose of the data collected.\u00a0IT teams can perform this crucial\u00a0governance\u00a0job\u00a0to protect the business from\u00a0regulatory\u00a0risk and brand reputation damage.\u00a0\nAs third-party cookies end, customer data\u00a0solutions enter into\u00a0the spotlight\u00a0\nHere are some cloud-based platform\u00a0solutions\u00a0that can help\u00a0IT teams\u00a0achieve their new missions as third-party cookies come to an end: \nCustomer Identity and Access Management\u00a0(CIAM) enables enterprises to collet first-party customer data,\u00a0create\u00a0foundational profiles, and orchestrate\u00a0data\u00a0across the business near\u00a0real-time. With the right CIAM solution,\u00a0an enterprise will\u00a0know who its customers are, and they can\u00a0grow\u00a0this knowledge as customers share more data with the brand over time.\u00a0\u00a0\nEnterprise Consent and Preference Management\u00a0(ECPM) allows a business to present clear consent requests to customers; collect,\u00a0store,\u00a0track consent, and preferences in a central repository; and\u00a0offer\u00a0customers\u00a0control over their\u00a0data.\u00a0Through ECPM,\u00a0an enterprise will know how\u00a0its\u00a0customers\u00a0want\u00a0to engage.\u00a0\nA customer data platform (CDP)\u00a0unifies data from all sources\u00a0across an organization and creates\u00a0comprehensive customer profiles. It also\u00a0honors the purpose of customer data at every stage of the\u00a0relationship and\u00a0activates\u00a0insights in real-time to engagement systems across marketing, commerce, sales, and service.\u00a0\u00a0\nBy integrating\u00a0a CIAM and ECPM solution with a CDP, IT teams\u00a0can play a pivotal role in delivering\u00a0an end-to-end customer experience that turns customers into\u00a0long-time\u00a0advocates.\u00a0\n\u2714\ufe0f Holistic digital strategy \u2714\ufe0f\u00a0Address data privacy regulations \u2714\ufe0f Build trust with customers  We\u2019ve got it all HERE.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2021\/04\/John-Norris-150x150.jpg"},"name":"John Norris","sameAs":"https:\/\/www.linkedin.com\/in\/john-n-89639b74\/","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/john-norris\/"},"dateModified":"2021-11-09T03:31:43+00:00","datePublished":"2021-04-06T06:01:03+00:00","description":"With the upcoming end of third-party cookies, IT teams have a unique opportunity to\u00a0amplify their impact\u00a0on revenue growth and CX.\u00a0","headline":"As third party cookies crumble, IT teams must seize 3 opportunities","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/04\/CDP017_CookiePocalypse_HB-01-1200x630.jpg","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/","name":"As third party cookies crumble, IT teams must seize 3 opportunities","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","logo":{"@type":"ImageObject","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","width":"500"},"name":"The Future of Customer Engagement and Experience","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"url":"https:\/\/www.the-future-of-commerce.com\/"},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/#Article"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"04","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/04\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"06","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/04\/\/06\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"As third party cookies crumble, IT teams must seize 3 opportunities","item":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/06\/third-party-cookies-ending\/#breadcrumbitem"}]}]