Senior Marketers Support Cookies

Nearly all businesses (99%) continue to rely on third-party tracking cookies for automated online ad purchases, with 70% of senior marketers backing Google's decision to maintain support for them.

However, a significant 38% of UK consumers plan to opt out of third-party cookies when Chrome introduces a single opt-in feature next year, while around a quarter remain uncertain.

These findings, from a study by global digital transformation company Apply Digital, highlight a clear divide between business interests and consumer attitudes toward data tracking.

Matt Gould, Chief Commerce Officer at Apply Digital, commented: "It's no surprise that almost 70% of marketers are happy with Google’s decision to extend the life of third-party cookies. However, it's clear that many consumers strongly oppose their use for tracking purposes.

"While it might seem like cookies will continue to play a role on Chrome, they're ultimately becoming outdated. Relying too much on third-party data isn't the best approach. Marketers should explore more advanced alternatives, like behavioral AI mapping tools, which offer a more sustainable and effective solution for the future."

The research shows that 61% of marketers anticipate Google’s decision will have a major impact on their digital strategies by 2025. Notably, 70% of retailers foresee significant disruption, compared to just 52% of CPG marketers. Additionally, a third of respondents express concerns about rising customer acquisition costs, driven by the potential loss of the precise targeting that third-party cookies currently enable.

The industry is taking significant steps to adapt to a future with less dependence on third-party cookies. A large majority (94%) of senior marketers indicate they are preparing to shift their strategies away from third-party data, with 79% already exploring alternatives.

However, despite this proactive approach, only 8% of senior leaders report no challenges in making this transition. This leaves 92% of businesses grappling with concerns about their ability to fully capitalize on first-party data.

One-third of respondents have made investments in collecting and utilizing first-party data (1PD) technologies, but another 35% struggle to convince users to share their information. Additionally, only 8% feel fully prepared to implement 1PD strategies, while 14% face challenges integrating this data with their CRM systems for effective personalization.

The findings highlight the need for brands to empower customers with more control over their data. One-third (33%) of consumers want the ability to choose what data they share and for what purposes, while 30% seek complete transparency regarding how their information is used. Additionally, users expect tangible benefits in return for sharing their data, with the most popular incentives being rewards or points (28.5%), personalized recommendations (27.7%), and exclusive offers (23%).

Dom Selvon, CTO at Apply Digital, stated: "In the years ahead, identity could emerge as one of the most game-changing forces on the internet, shaping how businesses connect with their customers. It has the potential to rival AI in terms of its impact."

"As third-party cookies disappear and customer acquisition costs climb, businesses are reassessing their strategies. Many are realizing that focusing on customer retention could provide a more sustainable growth path than constantly chasing new audiences."

"Our research shows that fragmented data results in fragmented decisions. When data is siloed, businesses struggle to provide the personalized experiences customers demand. With third-party cookies fading out, companies must adapt quickly to stay competitive."

For this research report, Apply Digital partnered with Censuswide to survey 100 UK C-suite executives, directors, and senior decision-makers, along with over 2,000 consumers. Business leaders were asked in-depth questions about their organization's data collection practices, how they utilized the data, and their investment priorities for the upcoming year. Meanwhile, consumers were surveyed about their views on data privacy, personalized online experiences, and trust in brands.