Cookieless future – Bumper business ahead for affiliate marketers

With Apple’s iOS 14 restrictions and Google’s deprecation of third-party cookies that marketers are set to lose targeting possibilities and third-party data sources that they have relied on for years. Santosh Ghosh, Specialist, Data, Tech & Innovation, highlights the big discussion on First Party Data and how the ownership of this data can be crucial for the advertising business in future.

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The method we used to target users is changing, thanks to Apple’s iOS 14 restrictions and Google’s deprecation of third-party cookies. Though Google declared in June of this year that it will delay the introduction of Chrome’s tracking cookie blocking until 2023, the step is not fully ruled out.

The specifics of what’s changing may be found on the Internet, and the long-term impact is still unknown, but we do know that we’ll lose targeting possibilities and third-party data sources that we’ve relied on for years.

While the changes will not affect every business in the same way, there are still strategies we can use to mitigate the negative consequences of the channels’ new policies, the first of which is to collect more first-party data. In this article, I will discuss just one crucial method to think about if you want to start collecting more of this type of data on your own. And most importantly, I will focus on how affiliate marketers, who were formerly thought to be at the bottom of the value chain, are now going to be the most powerful businesses, and how they may take advantage of regulations that are pushing us to a future without cookies.

In such a situation, there is a big discussion on First Party Data and how the ownership of this data can be crucial for the advertising business in future. This brings me to ask this: What is ‘first-party data’?

Let’s review first, second, and third-party data before we go into the strategies and how affiliates can take the advantage in such situations.

First-party data: Data you collect on your audience based on their actions on your website and/or app is referred to as first-party data. While this data is most beneficial since there are few privacy concerns, it might be difficult to scale because it is generated entirely by the marketer or brands.

Second-party data: Second-party data is essentially first-party data from someone else. Because data comes from a single source, you may be certain in its accuracy and privacy, but you will have to pay or partner up for it.

Third-party data: Independent researchers and companies aggregate different first-party data sources across websites and applications to create third-party data, which may also be purchased. This data is available in abundance and is set to go away.

Clearly, in such a scenario the dependence will increase on first-party or maybe second-party data.

So how can marketers build their own first-party data stack and how can this be advantageous to affiliate marketers?

There is no doubt that marketers must create their first-party data stack, and the simplest method to do so is through lead generation initiatives. Marketers have relied on lead generation efforts since the dawn of the Internet, but largely to increase sales or achieve the campaign’s end goal. But now is the time for marketers to reconsider and build their first-party data, which they can do by beefing up their lead generation efforts. You have a year to devote to this practice, which is an excellent amount of time. Although there are several methods for delivering lead generation campaigns, affiliate marketing is the most cost-effective way. Marketers, in my opinion, should develop a proper strategy and create campaigns only for collecting first-party data through lead-generation initiatives.

For the affiliates, it is going to be the bumper time ahead. I can think of two possible scenarios by which affiliate marketers can mint money in the run-up to a cookieless world.

1. Affiliates should come up with solutions for uniquely targeted campaigns to help marketers build first-party data through lead generation. This is simple since marketers will be trying to expand their data, so affiliates can design programmes and solutions that marketers can use. Affiliates should not mix such initiatives with their regular outcome-based campaigns, where there are multiple KPIs that are to be addressed and delivered. They should keep in mind that these are first-party data creation efforts, and as a result, they should be regarded or offered in a very different way.
2. Though marketers will increase their efforts in collecting first-party data, affiliates must prepare and be aggressive in gathering their own audience data. They have the users, they have the inventory (after all, it is their business), and they can begin creating their own first-party data. They can become an authentic source for offering second-party data once they have their data pool in place. Remember that no matter how hard marketers try to obtain first-party data, they will always hunt for an authentic source of data, and here is where affiliates can play a big role.

We may anticipate changes in targeting and regulations across many of the advertising platforms we will use in the coming years. The way we advertise to users across multiple channels will be different, but paid media has always been about adapting to change. The sooner we accept the change and alter our strategy to comply, the better off your accounts will be, once the new policies are implemented. Though it is critical for marketers to adapt to change, sellers (in this case affiliates) must take this as an opportunity and adjust their selling approach by presenting a newer range of products that will help them cruise when the cookieless world will be a reality.