Consumer and B2B enterprises are likely to focus on first-party data strategies in the coming year to diminish their dependence on external cookies. These cookies are expected to become obsolete by 2024. Google has initiated testing a new feature that restricts third-party cookies for a small percentage of Chrome users starting in early January. As the year progresses, an increasing number of individuals and businesses will vie for alternatives.
Google’s stance on third-party cookie deadlines
Elizabeth Herbst-Brady, Yahoo’s Chief Revenue Officer, suggests that Google is resolute on its 2024 target to phase out cookies in Chrome, despite previous postponements. She emphasizes the urgency for advertisers and publishers to swiftly and extensively explore various cookie alternatives and identity solutions.
To expedite preparedness, she anticipates a surge in testing diverse options across the board in the first quarter of 2024. The subsequent quarters are projected to witness a frenzied period of evaluation, learning, and adoption, culminating in a shift towards successful options by Q4.
Advancements in user data encryption and AI infrastructure
In light of the impending third-party cookie phaseout, marketers are gearing up to incorporate advanced encryption and adhere to the latest privacy regulations in their new customer data acquisition strategies.
Brian Land, VP of global sales engineering at Lucidworks, foresees that brands will confront fresh privacy and ethical dilemmas with the demise of third-party cookies and the rise of new large language models (LLMs). This shift necessitates a reevaluation of marketing practices and customer data management protocols to adapt to the evolving landscape.
Marketers are expected to leverage sophisticated encryption and secure data storage methods to safeguard consumer information while leveraging LLMs. Striking a balance between legal compliance, customer engagement, and data security will be paramount in their efforts.
Continue reading about the importance of customer data protection for marketers.
Business value optimization and AI integration
To mitigate the risks associated with “genAI multiple personality disorder,” Assaf Baciu, COO of Persado, predicts that organizations experimenting with AI tools for specific marketing functions will consolidate these solutions to establish a cohesive feedback mechanism.
Businesses are poised to centralize their AI initiatives by creating a GenAI “brain” to streamline the management of diverse AI systems embedded across their tech stack, particularly in marketing. This centralized approach aims to enhance automation, AI model training, and decision-making processes akin to the role CRM played in email marketing and CDPs in user data management.
Once businesses gain clarity on AI’s role within their organizational framework, they are expected to shift focus from experimentation to maximizing the value AI brings to their operations.
Michele Nemschoff, Head of Marketing at Persado, highlights that more CMOs will prioritize the effectiveness of GenAI in driving actions, conversions, and ultimately revenue. While GenAI emerges as a potent marketing tool, collaborative synergy between human expertise and AI capabilities remains pivotal for operational efficiency.
Enhanced data governance for content delivery optimization
In the forthcoming year, organizations will harness AI to elevate their content delivery for enhanced customer experiences. To streamline resource allocation and mitigate inefficiencies stemming from data discrepancies, marketers will emphasize meticulous data governance practices.
Chris Comstock, Chief Product Officer at Claravine, underscores the indispensability of robust metadata and standardized naming conventions as inputs for AI to yield meaningful outcomes. Addressing data gaps from content creation to performance measurement, and ensuring data consistency will be imperative across all verticals in 2024. Brands are expected to invest in AI for data management and optimization to harness the full potential of AI and LLMs.
Customer data exchange for value and personalization
As third-party cookies fade into obsolescence, marketers will explore innovative avenues to engage customers more effectively. A transparent value exchange, where customers derive tangible benefits from brand interactions, will incentivize them to share their information willingly.
Steve Dunlop, CEO of AMA-A Million Ads, asserts that a majority of consumers desire personalized experiences and are willing to divulge information necessary for tailored ads. Scalable personalization is poised to become more accessible, cost-effective, and feasible than ever before.
Yandong Liu, CTO of Connectly, underscores the evolving dynamics between personalized experiences and data privacy, emphasizing the need to strike a delicate balance. Maintaining this equilibrium will be pivotal for product development and enhancing user experiences in 2024, underscoring the importance of educating customers about their privacy rights while delivering personalized interactions.
Leveraging geographical data for targeted marketing
Rob Davis, CMO and President of NOVUS, suggests that post-cookie era strategies may pivot towards leveraging geographical and regional consumer data for targeted marketing initiatives.
Geographic targeting offers a privacy-conscious alternative that circumvents the reliance on third-party cookies by focusing on locations rather than individual audience attributes or anonymized profiles. While the concept is straightforward, executing precise campaigns at a granular level poses challenges for many businesses and marketers due to resource constraints.
ABM teams adopt buying committee ranking
Enterprise B2B marketers are poised to adopt more sophisticated approaches to target key organizations or committees by leveraging enhanced data insights and experiences.
ABM strategies are evolving beyond traditional metrics like marketing-qualified leads (MQLs) associated with individual personas within a company. Instead, ABM teams are transitioning towards qualified buying committee (QBC) scores to assess specific individuals within a committee and assign varying weights to determine the committee’s purchase readiness.
Karl Van Buren, CEO of Audyence, anticipates that sales teams will benefit from insights derived from both the overall Buying Committee Score and individual lead scores. This nuanced approach provides valuable guidance on stakeholder engagement, identifying key supporters, potential blockers, and individuals requiring additional context—a level of insight that conventional lead-scoring models may fall short of delivering.
Van Buren further notes that enterprise companies have proactively prepared for the impending cookie decline in 2024 by investing in first-party data strategies to reduce their reliance on cookies.
