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13 January 2022

Third-party cookies are soon to be gone. Instead, first-party cookies are the way to earn customers’ trust.

Delivering relevant content (including ads) improves conversion. That seems obvious in the ‘busy XXI century’ – users can spend less time to find what they want. This is crucial in many markets – travel is one of them. Third-party cookies were the key to success for giants like Facebook or Google. We have witnessed the rising demand for services and products almost instantly. Thanks to the third-party cookies, it was possible to collect users’ data to provide such info. However, something has changed – people now demand more control over their privacy. So, we have the GDPR or CCPA to give users protection and ensure more transparency in storing and using the collected information. And now another shift is coming – the third-party cookies are going down.

Third-party cookies – what you need to know

People all over the globe can use platforms and applications ‘for free’. It may seem that the Internet gave us a space for anonymously exploring the endless ocean of information without the need to give anything back. Not quite – we leave a digital track of any action in this space (unless we use sophisticated tools to cover these tracks). This means a lot more than just a trace – we give away our personal information. Algorithms keep an eye on our localization, interests, hobbies, and other aspects of our lives. Thanks to third-party cookies, we could be provided with accurate content anywhere. This was possible due to the cross-platform data exchange. For years, we were exposed to ad networks without even knowing it.

On the other hand, this data exchange translated to offering relevant information for users. This also enabled the smaller players to stay in the game. Otherwise, the tech giants could dictate the rules. One more thing is worth mentioning – the Internet is economically viable because the brands and publishers can both provide quality content and gain revenue from ads. According to Staista.com, 83% of marketers in the US relied on third-party data in 2021. Now they have to face the changes – the widespread impact of privacy law regulations and the paradigm shift of consumers’ perception about privacy result in leaving third-party cookies behind.

First-party cookies and third-party cookies – the main differences

There are a lot of differences between both types of cookies. For a better understanding of the topic, here’s a comparison.

Third-party cookies:
– Created by HTTPS requests (i.e., JavaScript, images);
– Stored under the third-party domain;
– Accessible on sites that reference the third-party domain;
– Allows to collect cross-site data;
– Advertising based on history from multiple sites;
– Already blocked on Firefox and Safari browsers;
– Not loaded when user is in incognito mode;
– Soon to-be-gone due to privacy concerns.

First-party cookies:
– Created by JavaScript on publisher’s domain;
– Stored directly on visited domain/website;
– Accessible on a single domain;
– Allows to collect same-site data;
– Provides better user experience;
– Advertising based on history from a single site;
– Supported by all browsers;
– May be blocked/deleted by users;
– Deleted after a single incognito session;
– Not affected by cookie deprecation shifts.

To make a long story short: third-party data is collected and sold by companies that have no relationship with the customer. The ads provided on information from third-party data are based on the demographics of the target user. The users have no control over the process, except jumping on the incognito mode or using other software/specific browsers (i.e., TOR). The first-party data is collected directly by a website or mobile application. This data is layered on top of “zero-party data” (the data that users willingly share with an organization in exchange for a particular benefit – i.e., instead of calling their customer, a travel agent can send a text message or an in-app notification.).

Delete a cookie and have a cookie – it’s possible in the digital world

The announced ‘death of third-party cookies’ disturbed many professionals from the marketing industry. According to Hubspot, “41% of marketers believe their biggest challenge will be their inability to track the right data,” and “44% of marketers predict a need to increase their spending by 5% to 25% to reach the same goals as 2021”. Google has a significant share in the market, as it’s over 65% (according to Techadvisor.com), that’s why the announced phase-out caused the panic in the marketing world.

The major pivot will have consequences for advertising, but there is a need to seek other solutions, like first-party cookies. Even the tech giant Google described the first-party data as “vital” in the announcement. After changes, the visitor profiles will be gathered into more anonymous ‘segments’. One thing is for sure – the first-party cookies provide a better user experience, and this factor impacts the conversion rate and the level of consumer trust.

User experience – the rock-solid fundament of success

Providing tailored-to-needs solutions build consumers’ trust and translate to brand loyalty. It’s simple – people like it when their expectations are met or exceeded. According to Yamini Rangan (CCO at Hubspot), UX and CX are the core drivers for businesses’ growth. Delivering relevant information instantly and in all channels leads to customer satisfaction. Again, it’s connecting the dots and getting the big picture about clients’ needs.

79% of users who fail to find what they were looking for will look for that elsewhere (Userbrain.com). User experience is not only usability – it’s a complex topic, which the company should tackle. So, in terms of the ‘death of the third-party cookies’ and offering a great UX solution, the best option is to use a product that merges these factors.

The algorithm is still in its game

What if there is a new user in town? It’s hard to guess their needs, so the best way to design the customer’s journey and analyze the behavior. Combining the facts helps tailor the output, thus, translating to a more accurate offer. This also applies to shortening the time needed to deliver what the customer wants. Sounds good? We want to introduce you to one of our solutions, Fact Combiner – an algorithm-based sales booster. The algorithm itself is sophisticated, but the idea is simple. So how does it work exactly?

First, Fact Combiner recommends products to users. Then, the search results are shown efficiently and conveniently arranged. At this stage, the customers’ behaviors are analyzed, and the gathered data is processed for automated marketing purposes. Then, a marketing profile is set, and real-time insights are in the game. What is the result? The optimization of sales funnels and ready profiles for future marketing campaigns. A detailed description of our solution can be found at the link: Fact Combiner – Case Study.

First-party cookies and Fact Combiner will boost your booking

We know that our solution works well. The Fact Combiner created by Axabee was implemented for one of the largest tour operators in Poland (and one of the major operators in Central and Eastern Europe) – Itaka. The changes in the Travel industry in the last two decades required a solution that provides a seamless booking system without the need of involving the travel agents in the process. It was a challenge, as most of the customers in the Travel industry purchase one or two trips per year. Thus, the frequency is not an ally, but the look-alike factor comes in handy. Our algorithm finds similar users and adjusts the recommendations based on their searches. It turned out to be a perfect solution.

Fact Combiner – the perfect solution for e-commerce

Our system can be applied to any e-commerce platform. Why is it worth it? It analyzes customers’ behaviors – this means that it can also measure the efficiency of affiliate campaigns. It gathers detailed data about the users’ actions and helps optimize processes. The data lands up in the CRM, so the information also creates marketing profiles. The data provides statistics in a convenient form – aggregated or individual. Fact Combiner also allows presenting real-time insights for users. What can you expect from implementing our solution? Excellent user experience, customers’ trust, and increase in revenue. And a massive load of data compliant with privacy laws. Although third-party cookies will soon be history, there is nothing to worry about with our solution. Are you ready to boost your e-commerce & ROI? Contact us for details.

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