Data Deprecation: What It Is and How To Prepare?

Data deprecation is an important topic within the B2C marketing community – meaning you’re likely to have heard terms like “cookie deprecation,” “walled garden restrictions,” “privacy regulations,” and “consumer privacy-related actions” thrown around a good bit.

These concepts, along with others, are what’s going to make it increasingly difficult to collect and activate consumer data for advertising and marketing purposes going forward. 

Thus, brands must be prepared for the ways in which data deprecation will change the digital marketing ecosystem. Instead of using third-party cookies to gain insight into consumer behavior, brands will have to rely on alternative data sets to get a detailed view of customers’ journeys. 

More importantly, digital marketers will be forced to refine their marketing strategies to embrace informed customer consent — a hot-button issue that won’t be cooling off anytime soon. 

In this article, we’ll be discussing advertising in the age of data deprecation and the impact recent changes will have. We’ll also discuss the opportunities data deprecation presents to marketers and how they can leverage them to benefit their brands. To ensure a good customer experience, companies can leverage the use of first-party data.

Preparing for the Loss of Third-Party Cookies 

When it comes to browsing the internet, your digital interactions are recorded — sometimes with your consent and other times without your knowledge. Over the last few years, however, tech giants like Twitter and Facebook have found themselves under scrutiny by regulators, forcing them to strengthen their privacy and security controls and be more transparent on how they use customer data. 

The increasing number of customer data regulations has also led to the deprecation of third-party cookies by big players like Safari, Firefox, and soon Google — followed by the recent announcement from Apple that apps can no longer capture the identity of a customer’s device without customer consent. 

For a long time, digital advertisers relied almost exclusively on third-party cookies to target consumers for ad campaigns and determine the effectiveness of their marketing strategies. Thus, the removal of third-party cookies — essentially what the digital advertising industry depends on for data-driven marketing — is, understandably, causing a great deal of confusion for marketers. 

However, times are changing. Firefox and Safari have already blocked third-party cookies to protect the privacy of users, and Google Chrome has announced that it will do the same by 2022. 

Due to these changes, marketers are beginning to transition from the use of third-party data to that of first-party data. The good news? First-party data is more abundant than ever. The pandemic has provided marketers — particularly those from D2C brands — with the opportunity to collect loads of first-party data, as many shoppers were forced to shop primarily online. 

Pushed out of physical stores, consumers turned to e-commerce platforms, meaning businesses with an online presence were suddenly at a great advantage. Innovative online businesses collect first-party data from their customers — identifying attributes like behaviors, preferences, interests, consent status, customer scores, and more. 

After the total demise of third-party cookies, about 95% of the web will become anonymous. Thus, advertisers will no longer have a one-to-one match for each individual user. However, by relying on first-party data, marketers can still understand 100% of users who visit their websites. 

In line with these changes, 24% of marketers reported that they plan to raise spending on contextual ads, which will help marketers establish stronger, more lasting connections with their target audiences. 

How Is the Digital Marketing Landscape Changing Due to Data Deprecation?

In 2023, the global spending for digital advertising stood at $378 billion. However, the loss of third-party cookies and the increased demand for customer consent are going to change how brands interact with their target audience on digital platforms. 

Without third-party cookies, the marketers’ ability to leverage identity-based activation will disappear completely. However, this doesn’t have to be a death sentence to digital marketers. Instead, it can be seen as a way to force digital marketers to focus on more consumer-based approaches. 

According to eMarketer, 54% of digital marketers in the US have stated that they’re shifting to contextual targeting strategies, while 67.3% of digital marketers stated that they will build customer data platforms. By moving to permission-based datasets and increasing privacy measures to protect consumer data, marketers will put the rights of consumers at the forefront of their marketing activities. 

Research from Merkle’s 2021 Customer Engagement Report shows that 41% of digital marketers expect digital media activation will be the area most impacted by privacy-related data restrictions — with digital media measurement, web analytics, and direct marketing automation also likely to be impacted. 

In an effort to combat this issue, let’s explore the following five techniques — which can be used by marketers to maximize data gathering in the age of data deprecation:

(a) Strategize Around Zero-Party Data

While much focus has been placed on first-party data, we must not forget to invest in zero-party data, including transaction intentions, personal context, preference data, and customer brand perception.

With zero-party data, brands no longer have to infer customer behavior or preferences through secondary behavior. Instead, by fostering trust and building connections, customers will volunteer their data — believing it will help improve their brand experience. 

(b) Focus on Second-Party Data and Partnerships

Another great source of customer information is second-party data. Normally shared via non-competitive partnerships, second-party data is a great resource for getting to know your customers. 

For example, when Buick joined forces with Amazon to promote Amazon Alexa and their own cars, they shared a great deal of collected data — benefitting both brands. 

Retail media networks are also a great source for second-party data — collected by retailers such as Best Buy, Walmart, Kroger, Walgreens, CVS Pharmacy, and Target. Such networks are quite helpful for marketers; as such, retailers collect important data from consumers when making a purchase. 

(c) Digital Strategies and Experiences 

Merkle’s 2021 report also shows an increasing number of marketers are using digital strategies and experiences to collect first-party data — ahead of both customer data platforms and identity resolution. 

According to Marketing Dive, many CPG marketers are testing different ways of collecting first-party data. For example, PepsiCo’s Mtn Dew has created a “direct-to-gamer” offer, which functions as a way to collect first-party data from younger consumers with an interest in gaming and esports. 

(d) Create a Private ID Graph

A private ID graph, which is created using PII-based (personally identifiable information) customer data, allows marketers to use cross-device targeting on customers. 

Realistically, there aren’t any brands with an online reach and scale large enough to create a private ID graph on their own. Thus, this approach needs to be a partner strategy. 

In order to leverage their data and build a scalable data network, brands need to choose the right partner — someone whose reach complements and enhances their own. 

(e) Create Consumer Data Platforms

Consumer data platforms are another great choice, as they help marketers gain a comprehensive view of their customers — which can be boosted through omnichannel personalization. They’re also ideal for marketers who need to access customer data on a small or large-scale basis. 

In order to ensure that customer’s data is kept private, marketers should implement robust data management services, identity strategies, and rich intelligence layers into their consumer data platforms. 

And to get access to the strongest data, marketers will need to rely heavily on audience segmentation. Although there are a few different types of segmentation, behavioral-based segmentation can greatly help marketers, as it allows them to better understand consumers’ actions in the age of data deprecation. 

Behavioral-based segmentation involves digging deeper into consumer purchasing habits and considering behavioral patterns — like customer loyalty and engagement level.

4 Tips to Better Prepare for Upcoming Changes

Though it may seem dire, data deprecation doesn’t necessarily signal the end of data-driven marketing. With the right approach, savvy marketers can turn data deprecation from pain into gain. 

The following tips are four immediate actions that marketers can use to prepare for the upcoming changes:

(a) Revise your Data Collection and Usage Practices

Before making changes to personalization and targeting approaches, marketers should understand the types of data they are currently collecting and using. They must fully understand new data restrictions’ impact on their marketing activities. 

For example, financial services that rely on first-party data will be less impacted than manufacturers that rely heavily on third-party data for advertising. 

(b) Gather Zero-Party and First-Party Data

To ensure access to useful consumer data, brands should employ D2C strategies to collect zero-party and first-party data. Furthermore, brands must prioritize their personal data sets and use them to direct their relationships with consumers.

Zero or first-party data is usually collected in exchange for a specific perk or benefit. Brands can then use this high-quality data to inform marketing strategies — instead of making inferences from context, behavior, and intent via soon-to-be forbidden tracking mechanisms. 

(c) Implement Privacy Standards in Your Marketing Practices

If the age of data deprecation signals anything, it’s this: it’s high time marketers start thinking long and hard about consumers’ privacy and how they will protect it. 

Assess the strength and efficacy of your privacy standards and figure out how to apply the same principles to your marketing practices. 

(d) Test New Marketing Strategies

Conventional approaches to attribution-based measurement, personalization, targeting, identity, and personalization are about to get much harder. 

Therefore, to find success, you’ll need to test alternative approaches to targeting. You’ll also need to reconsider any current media partnerships or advertising technology in order to prevent data leakage or injection points. 

Remember, data deprecation is looming. Consider adopting new marketing practices now or risk getting left behind. 

How Can Marketers Thrive in the Age of Data Deprecation?

Although data deprecation may look grim to some, it’s not all bad news for skilled and adaptable marketers. As new privacy laws continue to pop up, marketers will be presented with opportunities to consider using less-problematic advertising alternatives.

If you’re an innovative marketer, you should ask yourself questions like:

• “Are we relying too much on current technology?”
• “What will happen if our marketing strategies become obsolete?”

Creative marketers should be able to come up with clever alternatives, like native advertising, which should pique consumers’ interest — as opposed to annoying pop-ups or hyper-targeted content. 

Data deprecation also allows marketers to discover new ways to leverage and use data, allowing marketers to target relevant audiences without becoming intrusive. 

Furthermore, data deprecation sends a strong message to brands: they cannot achieve their marketing goals at the expense of consumer trust. As more brands and publishers come to terms with this fact, building trustworthy and close relationships with customers will become even more important. 

According to the Relieving Data Deprecation And Identity Challenges report, 38% of respondents stated that gaining consumer trust will be paramount. Should brands succeed in gaining consumer trust, it will be much easier to gather customer insights and refine future marketing strategies to meet their needs. 

Another way for brands to succeed in the post-cookie world? Embrace emotional marketing. Brands can reap huge benefits when they connect with customers on an emotional level, as strong emotions can also boost the virality of any ad. 

According to Unruly a video ad tech company, the most shared ad in 2015 was Google Android’s “Friends Forever” campaign — which featured cute animals in an effort to induce feelings of warmth and well-being. 

Remember that consumers are human and, therefore, subject to their emotions. Marketers who use those emotions to form a connection via their marketing strategies will foster greater brand trust. 

5 Best Solutions For Brands to Thrive in the Privacy-First Era 

Clearly, the time has come to consider new approaches to data-driven marketing. To remain effective and sustainable, brands will need to change up their approach to gathering data by focusing on stronger customer relationships built on trust. 

Brands will also need to take an omnichannel approach to customer communication to ensure the best chance of gathering data in an approved manner. By communicating with customers via channels they’ve approved and are most likely to use — be it via phone call, SMS, or email — brands will find more success.

Next, we’ll discuss some solutions to help brands survive in the privacy-first era:

(a) Use Brand Tracking Software

Third-party cookies and mobile app IDs have made it easy for marketers to understand consumers up until now. However, in the age of data deprecation — where data collection will require direct consumer consent — tracked data will not be available in abundance. 

Instead, we’ll need to turn to alternatives in order to thrive in this data-deprived world. 

That’s where advanced brand tracking software like Latina comes in. A tool like Latana can help marketers answer important questions, such as:

• What are the usage habits of my target audience?
• How do consumers feel about our brand and our competitors?
• What values do consumers associate with our brand?
• Do consumers prefer our brand over others?

Using mobile-optimized surveys and Multilevel Regression and Poststratification (MRP), brand tracking software like ours can help marketers gain accurate and precise consumer data — which can be used to increase customer loyalty and reduce churn rates going forward.

(b) Analyze Your Web Traffic

Analyzing users who visit your website will provide plenty of insights about your customers — which you can then apply to your decision-making process. 

Using tools like Google Analytics for this, analyzing your web traffic will allow you to gather and analyze customer data on a centralized platform. 

(c) Set Up User Registration

Over-reliance on third-party data has led many businesses to neglect asking users to register on their websites. However, this is not a sustainable approach for brands that want to thrive in the privacy-first era. Instead, brands should devise creative ways to request that users register on their websites. 

For example, Wayfair added a user registration process before granting access to any part of their site — and offered a discount upfront for those that registered. Users who chose not to register could return to the site and proceed without registering. But, Wayfair made a point to still offer up their registration discount in an effort to change consumers’ minds. 

(d) Progressive Profiling

After users have registered on your site, you should consider collecting additional information as they move through your customer journey — specifically demographic and firmographic data, as well as any additional information of interest. 

Understandably, asking for this kind of data upfront would lower the success rate of your user registration process — as no one wants to provide their life story in a single form. Examples of progressive profiling include form fills to download content and click engagements. 

(e) Interactive Chatbots

Interactive chatbots have provided a new and exciting approach to conversational marketing. 

They’re a great option for brands that want to offer real-time chats, and they support collecting user data, such as names, phone numbers, and emails. Depending on the chatbot used, it can be possible to define the type of data that you would like to collect, allowing for more customization.  

Final Thoughts

Data-driven marketing has relied on cookies for a long time, as they allow brands to provide consumers with ads tailored to their browsing history. However, increasing customer data regulations have led to the deprecation of third-party cookies, changing how brands collect and use data.

With even more changes to come, the manner in which brands interact with their target audiences will be forever altered. Although it hasn’t been easy, data deprecation allows brands to refine their marketing strategies and make them more consumer-centric — which is the future of marketing.

To prepare for this new approach to collecting and handling data, brands should consider creating customer data platforms, collecting second-party data from non-competitive partnerships, and creating private ID graphs. 

These strategies will ensure that your marketing strategies aren’t too heavily disrupted by the forthcoming changes to customer data privacy and the increasing demand for customer consent.

Garima Khandelwal

A Digital marketing expert with a passion for all things digital. With a wealth of experience in the field, can excel at crafting and executing data-driven marketing strategies that drive results. Also, loves to travel and explore new things.