Advertisers have used cookies for years to monitor consumer behavior on the internet in an effort to increase their advertising effectiveness.
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Cookies work in a similar way: A cookie records the consumer so that the advertiser can target them more effectively. Although cookies have had their place in the past, they are now obsolete.
Google and Apple made some major changes to cookies recently, which foreshadowed a world without them. Since then, many have been discussing how the changes will impact the advertising landscape. But there is one key thing to remember: How these changes may affect B2B or B2C advertisers in different ways. We’ll be covering the likely impact on each model of business.
Comparison of first-party and third-party data
It is important that you recognize the differences between B2B and B2C data before diving into the B2B/B2C debate. First-party data refers to data that a company owns on its website. These cookie changes do not affect first-party data as it is already owned by the company. Companies will be able still to track visitor activity through their websites or channels and see what they are doing.
However, third-party data is the one that’s being affected. These are the information that tracks users across websites that you don’t own. It could be website browsing history, purchases, and other information.
Comparison of B2B and B2C
B2B businesses need to look at the effects of cookie deprecation on their advertising differently to those who work in B2C. Their go-to market strategies differ greatly. B2B marketers are now less focused on sweeping the market. Many are choosing to build an account-based experience instead (ABX).
How does that tie in with cookies? The goal is to preserve consumer privacy. In a cookie-free environment, consumer data won’t be tracked individually but will instead be displayed at the group level. ABX does not identify individual users, but only accounts or organizations. This is in line with third-party cookie removal. Account-based targeting with ABX can be compared to cohort targeting. B2B companies that use true ABX with intent data already employ an efficient form of context targeting. They are well-positioned to compete in a cookieless market.
B2C businesses are quite different. B2C companies are a different story. These companies focus on individual customers, and shifting to a group level of data will definitely change advertising strategies. Google claims that third-party cookies are being phased out in the coming year. This is a more gradual transition than most people think. Google is working on alternate ad initiatives that purport to yield at least 95% of the conversions per dollar spent when compared to cookie-based advertising so other options will become available.
Prepare for Change
What’s the next step? Each category of companies must make plans to improve their advertising approach in order to take advantage of the privacy-first data.
B2B businesses can best adapt to these changes by first evaluating whether or not their technology is suitable.
Consider whether your account-based marketing automation relies on multiple sources of data or only cookies. The former would be ideal as you wouldn’t feel affected.
Think about how your system sources intent data. Is it via IP-address identification? Cookies? The former is the best. It’s worth looking at other options if your tech doesn’t support these updates.
You should be aware of red flags when certain products are being touted as highly effective. Email signature spyware, chatbot tools and other software can clutter your data and create inaccurate signals.
B2C businesses should keep their current ad strategies, however it is important to remember that cookie-free advertising will soon be the norm. Be open to new ad strategies by big players such as Google and keep an eye on them.
Although it is always beneficial for technology providers to put the privacy of consumers first, there are some challenges. You can maximize the next wave advertising if you are aware of how this latest change may impact your company. Your ad strategy does not have to change if cookies are falling apart.
Publited Sat, 14 August 2021 at 19:00:46 +0000