In an earlier post, we write about the transition away from third-party cookies and into new secure ways of generating data for marketing purposes. However, it’s important for us to highlight the true financial impact of these changes, and why it’s critical for companies to start their transition early. Martech companies who delay their own phasing out of third-party cookies will pay the price and potentially be left behind for good.
We'll send updates directly to your email inbox.
Learn more about marketing disruptions involving cookies, cross-domain scripts, and device IDs. Get tips for using your Confection account effectively. Read customer experiences.
In 2020, both Firefox and Safari stopped supporting third-party cookies altogether. With a combined 20-25% usage share, this meant that cookie-based data generators were only running at 75% capacity. For big brands spending millions on online advertising, this is a major financial loss that only a few were able to recover from.
Now, Chrome is planning a phase-out of third-party cookies by 2023, which eliminates another 60% of the usage market. Companies still reliant on third-party cookies after this transition will be wasting 80% or more of their marketing dollars with such limited capability of third-party cookie technology.
Recent reports estimate that this transition could result in a nearly $10 billion revenue loss in martech and advertising industries as ad personalization options begin to decrease. Without an alternative by 2022, this could result in a 50% or more drop in revenue for some of the biggest martech companies in the U.S. and worldwide.
Educating yourself about privacy first disruptions and opportunities? Keeping an eye on the future of cookies, cross-domain scripts, and device IDs? We can help. Subscribe, and we’ll send content like this directly to your email inbox.
$10 billion seems like an unimaginable number for revenue loss within a few years. However, there are multiple factors that make this transition away from third-party cookie usage an industry-changing event:
The only solution to change is adaptation. If martech companies don't want to be caught in the crossfire as third-party cookies become obsolete, they need to invest in sustainable and secure programs that allow for tracking without compromising user data. Confection is part of the solution to provide a data generator that is good for people and marketers alike.
Our solution eliminates the need for cookies by providing an ecosystem for tracking that doesn't compromise user data privacy. Our solution is compliant with international privacy-first laws, which means it is forward-thinking with the inevitable privacy-first world.
If you'd like to learn more about how Confection can help you prepare for a privacy-first future, schedule a demo by clicking the button below.
Questions or comments? Leave them below.
Get started. Risk free.