Further proof – if it were needed – of the power of customer data platforms to tackle marketing’s biggest headaches has emerged, with a new study revealing brands which have installed a CDP are far more confident they will not only survive the so-called “cookie apocalypse” but will thrive while others flounder.
So says a new report from Relay42, “Rethinking Digital Marketing in a Post-Cookie Era”, which quizzed 300 chief marketing officers (40% from the UK) to find out how prepared brands are for the challenge of the demise of third-party cookies; on the cards since February 2020. Three stays of execution later, the new version of Chrome is due to be released next autumn.
The move, which will affect nearly every aspect of digital marketing, from customer data collection and consent mapping, to the personalisation of owned and paid channels, as well as web analytics, has fuelled the launch of a raft of new solutions but there is no single technology that will directly replace the third-party cookie.
The future will involve stitching together a number of solutions, with the precise combination depending on the nature of the individual business and their digital marketing focus.
Of the total survey sample, nearly three-quarters (73%) admitted the demise of third-party cookies is going to be a major challenge, yet those who have already installed a CDP are three and half times more likely than non-users (38% vs. 11%) to strongly agree their tech stack and internal IT are well-placed to pivot to, and thrive in, the cookieless world.
CDP users are also three-and-a-half times more likely than non-users (39% vs. 12%) to strongly agree their executive management team understands the challenge of moving to a post-cookie future, and are committed to investment to address it.
Given the time and money involved in moving to a CDP, the report maintains that it is not surprising that organisations which have done so credit their executive management team with a high level of understanding of the need for this investment.
In fact, two-thirds (69%) of CDP users see the demise of third-party cookies as having a positive impact on their marketing. More than this, CDP users are seven times more likely than non-users to think the change will have a ‘significant’ positive impact on their marketing activities. In comparison, nearly three-fifths (59%) of non-CDP users expect the change to have a negative impact.
The presence of a CDP is also crucial to unlocking the potential of the more advanced analytics of the future; CDP users are four-and-a-half times more likely to be leveraging AI/machine learning than non-users, and six times as likely to be using multi-touch attribution.
Relay42 founder and chief executive Tomas Salfischberger said: “Marketers who have implemented a customer data platform are significantly more prepared for this transition and view the change as a positive influence on their business.
“These businesses can better leverage zero- and first-party data to collaborate with future cookieless advertising solutions, and also demonstrate more advanced capabilities in their use of machine learning, onsite personalisation, and customer journey orchestration.
“Maturity in these disciplines enables these businesses to deliver personalised experiences and build stronger relationships with their customers.”
Customer Data Platform Institute founder and CEO David Raab goes even further. He added: “The main lesson from this study seems to be that CDP users are better at everything (we also suspect that they’re taller, funnier, and earn more money, although that remains unproven). Of course, correlation doesn’t prove causation, so we can’t say this data shows that having a CDP makes those other things possible.
“But it’s reasonable to conclude that having a CDP is one mark of an exceptionally effective organisation. And you can take that one step further to state that people who are good at marketing technology have concluded that a CDP will help them to succeed. That’s endorsement enough.”
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