By: Soumyaroop Mukherjee, Digital Transformation Leader, Consulting, LTIMindtree

In my conversations with various CXOs and peers in the field, there have been recurring discussions around the importance of first-party data and the continued deprecation of third-party cookies. The effects of this have been widely felt in marketing and lead generation.

The California Consumer Privacy Act and the EU Cookie Directive have forced our favorite ‘Cookie Monster’ to reinvent itself. Those pesky ads that uncannily predicted what you were shopping for are, in some sense, history. In accordance with the legislation, each time someone visits a site, they must be informed if cookies are being used. Additionally, they should be allowed to decline the use of cookies. A browser notification or pop-up window can be used to provide information about the site’s cookie policy, and the option to opt out. The user can also have the choice of whether to accept or allow third-party cookies.

Third-party cookies are created by domains other than the website or domain that you are visiting. These are usually used for online advertising purposes and are added to websites through scripts or tags. A third-party cookie is accessible on any website that loads third-party code and scripts. A user who refuses cookies will experience a less personalized browsing experience; however, the law requires that this option be available.

Additionally, this has major ramifications on marketing companies and customer data and preferences. Organizations have been affected by the end of support for third-party cookies by the most popular web browsers and the rise of other forms of tracking prevention. Major browsers like Safari have started blocking third-party cookies since 2017, Firefox in 2019, while Edge and Chrome are tightening things at their end as well. Due to this and privacy legislation that has emerged around the world, the digital marketing ecosystem has undergone significant and long-lasting changes.

The following areas need to be addressed:

• Focus on first-party data collected through cookies, mail campaigns, terrestrial, and other
  methods
• Orchestration, identification, and consolidation of the audience
• Analysis and insights into data and continuous evaluation ensure the same is clean, current,
  and compliant

Marketers will focus on first-party data for better reach. Publishers will identify authentication strategies that will enable them to establish a value exchange and forge stronger first-party relationships. I am advising most of my customers to revisit their customer identity and data platforms, e-commerce and omnichannel infrastructure, and strategy. Subscribe to our blogs; we will be happy to help.