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Digital marketing is shifting, and CPGs are preparing for a future without third-party cookies. 

Third-party cookies have been an essential tool for digital marketers, providing opportunities to tailor the user experience and ensure ads are landing in front of the right audience. But the way data has been used in the past is changing, and brands that want to stay relevant need to change with it. 

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The coming shift away from third-party cookies means that first-party data strategies will become even more crucial to providing personalized experiences and relevant ads. First-party data has the potential to be invaluable to brands because it provides accurate information about user behavior, but gaining access can be tricky, leaving 41% of marketers worried that their biggest challenge will be their inability to track the right data. 

With big changes on the horizon, the best thing CPGs can do to stay competitive is to embrace the transition as an exciting opportunity for growth. 

First-Party Future

First-party data’s significance is found in its accuracy. The insights gathered come directly from users who have expressed interest in a specific product or categories of products. By removing the guesswork from advertising, brands can more narrowly target their customers and rely less on blanket advertising that risks landing in front of irrelevant audiences. As advertising budgets are tightened and CPGs fight with one another to stay competitive, this ability to target the right audience will be critical to a brand’s future success. 

And time is of the essence. CPGs that hesitate to move away from their reliance on third-party cookies risk losing access to their most relevant audiences.

Valuable information on consumer preferences, data on specific demographics, and the ability to design comprehensive customer profiles are all on the line.

Getting products in front of the right customers in the future requires securing access to first-party data now. 

Different Paths to Data

As demand continues to rise, different strategies for collecting first-party data are emerging. One example is data clean rooms, where large retailers like Amazon share aggregated data with advertisers. The aggregated data is then compared with first-party data collected by brands to see how the different data sets match up, allowing brands to see if they are over-serving ads to specific audiences. 

But data clean rooms can be expensive. The companies that control major platforms understand the high value that data has and have little incentive to divulge too much of it to advertisers. This means brands that want to buy access to retailers' first-party data must be willing to pay a premium. In addition to the cost, effectively utilizing data clean rooms requires intense logistical planning. CPGs need teams ready to perform intense data analysis to make the data actionable.  

Because data clean rooms rely on brands and retailers working together to compare data, the value of information relies on transparency from both parties. While CPGs are being presented more opportunities to  advertise across the retailer's digital channels, often access to sales data requires an even greater cost. This leaves brands trying to operate without the full picture and having to make guesses and assumptions about future strategies. 

Own Direct Access

As brands scramble to solidify their first-party engagement, Adsta’s open network provides a crucial alternative. Adsta allows CPGs to collect first-party data directly, giving brands an important opportunity to make connections with customers. Plus, the data is acquired without having to pay the exorbitant fees that major retailers charge.

Beyond invaluable access to first-party data, Adsta offers brands independence. By putting products in front of a network made up of millions of shoppers nationwide, Adsta allows brands to foster long-term relationships directly, removing the reliance on intermediaries. 

As digital advertising undergoes a dramatic change, Adsta is helping brands embrace first-party data with confidence.