Trend 3

Some brands aren't letting go of third-party cookies

Background

With Google phasing out cookies sometime next year, brands are rushing to capture first-party data to continue personalizing customer experiences. While this transition is a challenge, it’s also an opportunity for brands that are recognizing that the value of first-party data vastly surpasses that of third-party cookies.

And yet, collecting data matters only if you have the ability to use it. As businesses increasingly rely on first-party data for personalization, investing in the right communication tools becomes crucial to maximize data benefits and provide exceptional customer experiences and marketing results.

53% of brands say their marketing strategy relies on third-party data.

Brands say they rely on third-party data

Cookies are crumbling, but businesses are more prepared

With a cookieless world fast approaching, many brands have already made the switch to first-party data. Last year, only 19% of businesses said they were using mostly or entirely first-party customer data for marketing. This year, that number soared to almost half (48%) of all businesses surveyed.

And yet, some brands remain reluctant to embrace the change. Today, only two out of three brands say they're fully prepared for a cookieless future, up only slightly from last year. That means 34% of businesses have a lot of work to do this year.

of marketing strategies still rely ‘entirely’ or ‘mostly’ on third-party data, down from 50% last year

Top tools brands are investing in to understand customers

Unlocking the power of customer data to drive business success

Collecting first-party data from customer interactions with company channels is only half the battle for brands. In order to put it to use, brands need a way to analyze this information and make sense of it. This is where most modern businesses say they’re falling short.

While many businesses have tools like CRMs, CDPs, and CPaaS at their disposal, very few claim a genuine understanding of their customers. In fact, only one in four brands ‘strongly agree’ that they possess the necessary tools to understand their customers. 

With AI, brands have a substantial opportunity to analyze vast amounts of customer data, derive actionable insights, and serve personalized experiences on preferred channels.

Engagement Leaders are ready for a cookieless future

Of course, some businesses are more prepared than others. Our Engagement Leaders are the most ready for cookies to vanish as these businesses are more likely to:

‘Strongly or moderately agree’ they have the right tools to understand their customers.

Have a complete view of their customers.

‘Strongly or moderately agree’ they have access to crucial customer data.

Percent of brands (by maturity) with the right tools to understand customers

With the right tools, clear data, and unified customer profiles, these brands are well positioned to continue serving personalized customer engagement—even when cookies are long gone.

Global findings

While brands in most regions reduced their reliance on third-party data in 2023, Hong Kong, Malaysia, Italy, and Singapore still rely ‘mostly, entirely, or an even mix’ on third-party data. Curiously, some countries took a step back last year, saying they’re less prepared for a cookieless future than they were in 2022. This could be due to Google delaying its deprecation deadline.

Countries where brands say they're most prepared for a cookieless future

Actionable insights

To transition from third-party data in 2024 and embrace a cookieless strategy, follow these tips:

Every interaction your customer has with your brand, whether it’s a purchase, a support request, or a response to a survey, teaches you more about them and their preferences. The sooner you start collecting this type of data, the sooner you can start activating it to make every engagement more impactful. With Google already beginning to phase out cookies, the best time to start is today.

Once your business has invested in first-party data, it’s critical you procure tools to clean, consolidate, and activate it. To help, your business can use a CDP, CEP, contact center as a service (CCaaS), and CPaaS technology like Twilio's to keep up with rising customer expectations. Here’s how:

CDP: Collects and unifies customer data.

CCaaS: Personalizes user support based on past interactions.

CPaaS: Delivers communications across preferred channels.

CEP: Uses data to create personalized customer experiences across preferred communication channels.

For example, Twilio Segment (CDP) can collect and unify customer data, which can then be used by Twilio Engage to create personalized customer journeys. These personalized communications can then be delivered via your customer’s preferred channels using Twilio's CPaaS capabilities. That includes voice, WhatsApp, SMS, email, and more. This integrated approach ensures a consistent, personalized, and engaging customer experience across all touchpoints.

Explore the data

The customer data types brands' marketing strategies rely on

How brand reliance on third-party data has changed YoY

Brands that say they're fully ready for a cookieless future

Percent of brands that say they have the right data to understand customers

Brand spotlight

CraftJack simplifies data collection to power better customer communications

CraftJack helps homeowners find skilled, reliable contractors in their area while providing quality leads to service providers.  

By connecting CraftJack's existing customer engagement channels with Twilio Segment’s CDP and exchanging its existing third-party email and SMS providers for Twilio Engage, they were able to fuel campaigns with reliable, up-to-date customer data and deliver personalized communications.

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