No Cookies? No Problem - How Data Science Will Shape The Future Of Digital Marketing
If you have any involvement in the world of digital marketing, you’ve undoubtedly heard about the imminent arrival of a ‘cookieless’ future.
This is huge news for advertisers around the world, and it’s also causing a fair amount of panic, confusion, and urgent brainstorming. However, as third-party cookies disappear from our internet browsers, opportunities will inevitably open for data scientists to pioneer new tracking solutions and marketing strategies.
(But more on that shortly.)
In this post, we’ll be explaining what cookies are, why they’re vanishing, and how data scientists can help digital marketers navigate an increasingly complex post-cookie world.
What are cookies, exactly? And more importantly, why are they disappearing?
In simple terms, cookies are pieces of data stored across the internet.
They’re tiny bits of information that help websites remember details about visitors - for example, if they’ve visited the website before, added products to their shopping carts, or previously completed a purchase.
Now, some cookies are pretty unproblematic. First-party cookies are stored exclusively on websites you’re visiting, and they remember helpful things that improve your browsing experience - such as items you’ve previously viewed, your location settings, and your login details.
The real issue is third-party cookies.
Rather than staying on specific websites, third-party cookies are created by external parties and designed to follow you around the internet. They help marketers track you across websites, monitor your behaviours, and retarget you with ads - if you’ve ever clicked on a pair of trainers and seen them pop up a few days later, you’ll know what we’re talking about.
Third-party cookies are extremely valuable for digital advertisers, but they’re also highly controversial. In fact, rising concerns around data privacy are pushing third-party cookies out of existence, which presents marketers with a serious challenge.
Without third-party cookies available, brands and agencies will need to discover new, innovative ways to deliver relevant ads to their audiences - and fast.
This is where data science will become increasingly valuable.
Why are data scientists becoming so important in a cookieless world?
While the disappearance of third-party cookies is a massive turning point for the ad industry, one thing remains true - data is critically important for success.
Research shows that 87% of marketers believe data to be their company’s most underutilised asset, while 40% of businesses intend to increase their data-driven marketing spend.
Third-party cookies may be ending, but that doesn’t mean advertisers will just give up on audience segmentation, laser-targeted campaigns, and relevant messaging. It just means they’ll need to look elsewhere for future-facing solutions, and data scientists are perfectly positioned to offer support.
Data scientists will now help brands and agencies explore alternative strategies to cookies, such as leveraging first-party data, launching contextual ads, and using other audience identifiers. In the race for superior solutions, businesses with capable data scientists are infinitely more likely to come out on top.
Simply put, marketers who can effectively gather, analyse, and utilise different data sources are now more useful than ever.
Some agencies are already ahead of the curve here. For instance, Brainlabs leans heavily on first-party data frameworks and advanced modelling techniques, while Moloco uses machine learning to maximise the value of first-party insights.
The evolution of Google Analytics 4 and machine learning
It’s also important to acknowledge the role machine learning will play in a cookieless market.
Machine learning platforms can rapidly organise and analyse mind-blowing amounts of data. Unsurprisingly, this makes them a powerful asset in a world without cookie-based tracking.
For example, Google Analytics 4 (launched in July 2023) is Google’s ‘next-generation measurement solution.’ The platform is equipped with various ‘cookieless tracking’ capabilities that help marketers build accurate data models without infringing privacy rules.
So how does this work?
Well, GA4 uses a combination of predictive modelling and observed data to provide marketing intelligence. In other words, the platform is constantly predicting audience behaviours (based on pre-existing data) and simultaneously analysing new insights to improve performance.
The key here is high-quality, accurate data.
Without third-party cookie tracking, tools like GA4 need as many alternative data sources as possible to extract learnings. First-party data is absolutely crucial, as the more data these platforms can absorb, the more effective they’ll become at predicting audience behaviours.
Once again, this is where data scientists will be indispensable for ad agencies and businesses. These experts will understand how to unlock the full potential of machine learning and help advertisers fill in the gaps left by third-party cookies.
What does this all mean for the advertising job market?
The disappearance of third-party cookies is a seismic change for the digital marketing sector - but this change will also open up new opportunities.
As the cookieless age dawns, it will become increasingly important for marketers to navigate a minefield of complex algorithms, machine-learning models, and data privacy regulations.
If companies and agencies want to stay ahead of the competition, they’ll need to invest in individuals who can interpret analytics, contribute to strategic decision-making, and fuel machine-learning platforms with the right data.
While there’s plenty of uncertainty surrounding a world without third-party cookies, one thing is for sure - an experienced, innovative, and ambitious data science team will be pivotal for success. By recruiting qualified talent in this department, advertisers can give themselves the best chance of thriving in a post-cookie era.
If you're looking for a role within the Data & Business Intelligence market, please get in touch with Joe at [email protected]
