A new study by Apply Digital, a global digital transformation company, highlights differing attitudes between businesses and consumers regarding the use of third-party cookies for online advertising.
The research shows that 70% of senior marketers support Google’s decision to continue supporting third-party cookies in Chrome, while 99% of businesses still rely on these tools to purchase ads.
However, the findings also reveal significant consumer pushback. In the UK, 38% of consumers intend to opt out of third-party cookies when Chrome introduces a single opt-in option next year, and around a quarter remain undecided.
Matt Gould, Chief Commerce Officer at Apply Digital, noted the polarised views: “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.”
While cookies may remain relevant in the short term, Gould emphasised the importance of preparing for their decline: “Ultimately, they are a fading technology. Businesses 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.”
Marketers Prepare for a Post-Cookie Future
The study found that 61% of marketers expect Google’s decision to significantly affect their digital strategies by 2025. Retailers anticipate greater disruption, with 70% reporting concerns, compared to 52% of consumer packaged goods (CPG) marketers.
A third of respondents are particularly concerned about increased customer acquisition costs, citing a potential loss of the precise targeting capabilities that third-party cookies provide. Despite these challenges, 94% of marketers say they are ready to transition their strategies away from reliance on third-party data, with 79% having already started implementing alternatives.
However, progress is uneven. Only 8% of senior leaders report facing no obstacles in this transition, while 92% encounter challenges, especially in adopting first-party data strategies.
Challenges in First-Party Data Adoption
First-party data (1PD) is seen as a vital alternative to third-party cookies. A third of respondents have invested in 1PD collection technologies, but persuading users to share data remains a challenge for 35% of businesses.
Integrating 1PD into existing systems also presents hurdles, with only 14% of respondents reporting successful integration into customer relationship management (CRM) systems for personalisation purposes. This gap underlines the need for a cohesive approach to data management and customer engagement.
Dom Selvon, Chief Technology Officer at Apply Digital, highlighted the risks of fragmented data: “Disconnected data leads to disconnected decisions. When data remains fragmented, businesses face challenges in delivering the personalised experiences that customers expect.”
Consumer Expectations for Data Use
Consumers increasingly expect transparency and control over their data. A third of respondents said they wanted to decide what data to share and for what purposes. Additionally, 30% expect businesses to provide full transparency about how their data is used.
To encourage data sharing, businesses must offer tangible benefits. The most popular incentives identified in the study include rewards or points (28.5%), personalised recommendations (27.7%), and special offers (23%).
Rethinking Customer Engagement
As third-party cookies are phased out, businesses face rising customer acquisition costs and are reconsidering their approaches to data-driven marketing.
Selvon highlighted the potential for identity-focused strategies to transform the landscape: “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.”
The findings suggest that customer retention may offer a more sustainable growth path than pursuing new audiences. As businesses adapt to a post-cookie ecosystem, those prioritising transparency, customer choice, and effective data integration are likely to stay ahead in delivering the personalised experiences consumers now expect.
The B2B Marketer, the online destination for B2B marketing professionals seeking valuable insights, trends, and resources to drive their marketing strategies and achieve business success.
