We've all thought, "How did they know?" at least once after seeing an ad. The answer most of the time is third-party cookies. These small pieces of data track your browsing habits, allowing advertisers to target you with specific ads. However, due to privacy concerns, third-party cookies are crumbling as major web browsers like Chrome and Safari phase them out— or so we thought.
Breaking News: Google’s surprise move on third-party cookies 🚨
In a surprising twist, Google has announced that it won’t be scrapping third-party cookies in Chrome after all. Instead, they are introducing a new experience in Chrome that lets users make informed choices about their web browsing. This decision came after discussions with regulators and industry feedback, emphasising a balance between privacy and ad-supported internet models.
Google's decision to keep third-party cookies could be a blessing in disguise, especially if it leads users to opt out of cookies. This pivot aligns with the growing need for privacy-preserving alternatives that still support effective advertising.
So where do targeted ads and third-party cookies stand in consumers’ minds?
To dive deeper into general perceptions of targeted ads and third-party cookies, we conducted a conversational study with 311 UK consumers in the UK to understand their preferences.
When asked about online privacy concerns, 43% of consumers cited personal data exposure, followed by financial data breaches (39%) and identity theft (26%). Only 3% were worried about social media hacking.
To discover new brands, 38% use search engines, a notable 27% find them through targeted ads, and 24% and 18% use Instagram and TikTok, respectively.
Are targeted ads always on point or pointlessly intrusive?
44% of respondents worry about privacy when it comes to targeted ads. While 38% appreciate their relevance, they often find them overwhelming over time. Additionally, 27% say targeted ads influence their purchases, while 26% find them annoying. This highlights them as a double-edged sword for brands. Notably, 8% find the ads repetitive and have concerns about cookies. As for the impact of targeted ads on brand perception, 16% feel that they don't have any impact, 36% find them somewhat impactful, 34% are neutral, and only 14% see them as very impactful.
But how do targeted ads change the perception of your brand exactly? Almost 1 in 2 consumers feel that targeted ads drive product interest (47%) and increase awareness (45%). On the flip side, 27% find they give them a negative perception and 23% mention decreased trust. Both ad annoyance and privacy concerns stand at 18%, reflecting a nuanced and complex consumer stance.
Would the cookies phase-out be a sweat treat for consumers?
In the UK, 38% of consumers are only somewhat aware of how cookies affect their privacy, and 24% admit they don’t fully understand them. Only 15% say they grasp cookies' implications very well.
Consumers were either neutral (36%) or expected only minor effects (35%) on their shopping and browsing habits from the third-party cookie phase-out, with just 13% anticipating a significant impact. Most consumers (37%) are relatively indifferent whether the world waves goodbye to third-party cookies or not. 29% hoped for less targeted advertising, 21% expected improved online confidence and 20% expected more comfortable browsing. 14% expected improved privacy.
What does this mean for your brand?
Cookie or no cookie, here are some foolproof methods to strengthen your targeting efforts while giving the consumers what they want - improved privacy and online confidence.
1. Optimise owned media for SEO and social algorithms
As mentioned previously, 38% of consumers use search engines to discover new brands, 24% use Instagram and 18% use TikTok. Therefore, double down on your owned media and optimise it for SEO and social media algorithms to increase your brand’s visibility and capture more digital footfall.
2. Find a balance between personalisation and pestering
While 38% appreciate the relevance of targeted ads, they often find them overwhelming, irritating and repetitive. Determining the optimal frequency for your ads to convert without becoming overwhelming is key. Remember that there is a fine line between personalisation and pestering.
3. Prioritise first-party data
Brands should focus on driving traffic to their digital storefronts to capture first-party data consensually. Since Instagram and TikTok are the third and fourth most popular channels consumers say they use to discover new brands, partnering with businesses or influencers for social-first campaigns can effectively drive awareness and traffic. Once consumers land on a brand's site, they should incentivise them to join their community or create accounts. This strategy will allow brands to create personalised profiles based on previous behaviours, enabling more effective targeting.
Brand Spotlight:
1. Amazon
2. Google
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