What will happen after the end of cookies?

The end of cookies is getting closer. Google plans to start removing third-party cookies in June this year, with the goal of phasing them out completely by the end of 2023.

Initially, Google proposed the Federated Learning of Cohorts (FLoC) system, which groups users with common interests, as an alternative. However, uncertainties arose about the compatibility of such a system with European privacy policies.

The Mountain View company’s response has been the development of Topics, a proposal for advertising based on the user’s interests. “With Topics, your browser determines a handful of topics, such as ‘fitness’ or ‘travel and transportation’, that represent your top interests for that week based on your browsing history. Topics are retained for only three weeks and old ones are deleted. And themes are selected entirely on your device, without involving any external servers, including Google’s servers,” explains Vinay Goel, Product Manager for Google’s Chrome Privacy Sandbox.

These changes will be very important for companies, which spend up to 40% of their technology budget on tools to have a better understanding of the customers, generate a closer bond with them, increase satisfaction and improve results in the different target indicators, according to the study ‘The impact of technology on customer loyalty strategies’, prepared by Tenerity.

Thus, the company’s experts highlight some systems that companies should implement throughout 2023 to face this new era after cookies. Firstly, they indicate that it will be essential to create First Party Data platforms that allow the collection of user data with their prior consent, thus allowing data and its traceability without depending on third parties.

In this sense, Tenerity stresses that 60% of users would be willing to give up personal information if this way they receive more personalized ads and proposals, as well as a closer experience, according to data from a Salesforce report.

The combination of marketing automation, artificial intelligence, and machine learning will also be very important. The company explains that these technologies help to get to know the customer and generate a close bond with them, adjusting to their needs and thus increasing their satisfaction.

Finally, Tenerity’s experts assure that data governance systems will be essential to guarantee the appropriate use of data, as users are increasingly aware of the importance of guaranteeing their own privacy and the transfer of their data. Not surprisingly, they point out that 46% of users say that they have logged into their Google account at some point to adjust their privacy settings, which shows their concern in this regard.

In addition, the company stresses that data governance systems make it possible to improve the quality and scope of data, reduce management costs, facilitate access to this information for all company departments, and work with it in an appropriate manner.