Almost all (99%) of businesses still use third-party tracking cookies to automatically buy ads online and 70% of senior marketers support Google’s decision to continue supporting them.
However, a substantial 38% of UK consumers intend to opt out of third-party cookies when a single opt-in is introduced to Chrome next year – and around a quarter remain, as yet, undecided.
This is according to research conducted by global digital transformation business Apply Digital reveals a stark contrast between business and consumer perspectives on data tracking.
Matt Gould, chief commerce officer at Apply Digital, said: “It may come as no great surprise that nearly three-quarters of marketers are pleased Google has given third-party cookies a lifeline. However, a significant portion of consumers clearly have strong negative feelings on their use in tracking.
“It might look like there will be a future for cookies on Chrome, but ultimately they are a fading technology. It would be wise not to rely on third-party data too heavily and instead explore new and better options such as behavioural AI mapping tools that will better define the future in the long-term.”
The research reveals 61% of marketers believe Google’s decision will significantly impact their digital strategies by 2025, notably with 70% of retailers expecting disruption compared to just over half (52%) of CPG marketers. A third of respondents are worried about increased customer acquisition costs and this concern is tied to the potential loss of precise targeting capabilities that third-party cookies provide.
The industry is being broadly proactive in preparing for a future that is less reliant on third-party cookies though. Nearly all (94%) senior marketers suggest they are ready to transition their strategies away from third-party data and 79% have begun implementing alternatives.
Yet even with this willingness to change, only eight percent of senior leaders say they face no obstacles in making this happen – leaving 92% of businesses with concerns around their ability to fully execute on first-party data.
While a third of respondents have invested in first-party data (1PD) collection and technologies, a third (35%) report difficulties in persuading users to share their data. Moreover, only eight percent admit they are ready to execute 1PD strategies, with 14% reporting challenges integrating this data with their CRM systems to allow for effective personalisation.
The findings reveal brands need to give customers greater control over their data. A third (33%) want the option to decide what data they are willing to share and for what purposes, 30% expect full transparency on how their data is used. Furthermore, users expect something tangible in exchange for sharing their data; the top choices are rewards or points (28.5%), personalised recommendations (27.7%), or special offers (23%).
Dom Selvon, CTO at Apply Digital, said: “In the coming years, identity – as a way for businesses to understand and engage with their customers – could become one of the most transformative forces on the internet, potentially rivalling AI in its impact.
“As third-party cookies are phased out and customer acquisition costs rise, businesses are rethinking their approaches. Many are recognising that prioritising customer retention may offer a more sustainable path to growth than an endless pursuit of new audiences.
“Yet our research reveals that disconnected data leads to disconnected decisions. When data remains fragmented, businesses face challenges in delivering the personalised experiences that customers expect. The end of third-party cookies means businesses need to adapt – and fast.”
For this research report, Apply Digital engaged Censuswide to conduct a survey of 100 UK C-suite Executives, Directors, and senior decision-makers, and over 2,000 web users (consumers). Business leaders were asked detailed questions about data collection activities at their organisations, how they used the data they collected, and investment priorities for the year to come. Consumer survey respondents were asked detailed questions about how they felt about data collection and privacy, personalised online experiences, and brand trust.
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