The End of Cookie Advertising

How User Privacy is Changing the Marketing Landscape

Since the California Consumer Privacy Act passed in January of 2020 (CCPA is specific to California residents, but other states are pushing legislation following the CCPA), user privacy has become highly important to leading tech giants and browsers like Apple’s Safari as well as Mozilla’s Firefox, who have already chosen to ban third-party cookies due to consumer privacy concerns. Google is also taking action and has plans to phase out the third-party cookie in its Chrome browser over a two-year period that began earlier this year. With Google Chrome accounting for over 60 percent of all web traffic, this has major implications for advertisers who have previously relied on third-party cookies for targeting.

How can marketers replace the data void left by these changes?

While Apple and Google have proposed various ideas on how to fill the gap the cookie ban has created, the industry has yet to identify a unified solution. However there is an alternative: using physical data attributes via IP targeting, consumer data can be appended to match a physical household address where advertisers can then create hyper-targeted ads via digital banner ads that can be served to any mobile or desktop device linked to the IP address.

How can alternative data be implemented into marketing strategies?

By matching a physical address to an IP address, marketers reduce waste associated with third-party cookies while major internet browser companies develop a new concept. There are several benefits to the data append process that can be used to effectively implement hyper-targeted marketing strategies without using third-party cookies:

  • Utilizing Reverse IP Append, which is when a user visits a website, we track their IP address and append to their home address.
  • Enables marketers to see if people who are visiting your website are actual customers that live near your location.
  • Applying digital display and direct marketing tactics to a targeted set of households within a geo-framed area cuts down on negative redemption rates and waste.
  • Clients also use this data to implement competitive blunting tactics by capturing the device ID of a user who is within a targeted area and retargeting users with both digital and direct marketing campaigns.
  • Retarget users who live within their target market and follow up with a direct mail piece delivered to their home address.

This process provides a powerful combination of online and offline approaches which marketers can use to increase the effectiveness of their omnichannel marketing campaigns.

Much is changing for marketers who have long relied on cookie-based advertising, but luckily there are still options. It may require some creativity when utilizing alternative data sources, but with the help of the right data partners, like DBMG, marketers can increase engagement with their intended audience while cutting cost of marketing dollars.