3 Ways Retailers Can Thrive in a Cookieless Era

Retailers’ ability to identify and understand their customers plays a key role in their success. However, the onset of third-party cookie deprecation from Google, which officially began in January 2024, directly impacts how retailers can connect with their customers.

Retailers must pivot to new targeting methods to continue reaching the right audiences, keep customers brand-loyal, and discover new users — while remaining compliant with new privacy regulations. With the cookie phase-out continuing throughout the year, there are three considerations that retailers should keep top-of-mind to set themselves up for a successful cookieless future.

Build Robust, Reliable Datasets  

Targeting can never be too precise. However, changes in cookie tracking will make it difficult for quality ads to find the right audiences. In fact, one in three consumers (34 percent) age 25-plus already believe that the quality of digital ads have changed and aren’t relevant to their needs, according to a report from Publishers Clearing House Consumer Insights. The use of authenticated first-party data — particularly when bolstered by high-quality data from partners — can help ensure relevancy and resonance.

Retailers can better identify and reach targeted consumers when they pair their purchase data with accurate, privacy-compliant data from a partner. Gaining geographic location, demographics, interests and brand affinities builds a more holistic view of their audience. This enhanced dataset can help retain and grow spend with existing customers as well as expand reach to untapped users based on their online behavior.

Partners can also help retailers boost their first-party database with strategies like co-branded sweepstakes. Offering a chance to win builds excitement around your brand and increases the value exchange of data sharing. Naturally, all executions must remain privacy-centric, providing consumers the opportunity to opt in to experiences and data pass-along.

Leverage Loyalty Programs With Retail Media Network Buys

Loyalty programs have historically been successful revenue drivers for brands and retailers, and when combined with retail media networks (RMNs) they make the perfect targeting recipe. Offering incentives for customers in exchange for zero-party data can create more impactful media campaigns without the use of third-party cookies.

When the zero-party data that consumers supply via loyalty programs is combined with first-party data gathered through RMNs, a mutually beneficial relationship between brands, retailers, and their customers is created. As a result, shoppers receive more personalized ads — based on their specific interests — which increases brand loyalty. Their additional interactions then allow retailers to learn even more about them.

By leveraging RMNs and loyalty programs together, retailers can better reach and connect with their customers, keeping them coming back to shop again and again.

Test, Test, Test!

From clean rooms and shared IDs to direct campaigns tied to authentication, retailers can’t test enough targeting options. In fact, they should be testing as many options as they can to see what works best for them before cookies are fully phased out.

During testing, measure what outcomes lead to downstream sales and how they relate to campaign performance. This insight can help guide targeting optimization and allocation of future budgets.

While it may seem easier to work with walled gardens, there are many partners with valuable data assets that you can activate without boundaries. It’s critical for retail marketers to be nimble while exploring new partnerships, buying approaches, and strategies in order to thrive in the era of cookie deprecation.

From leveraging RMNs in combination with loyalty programs to developing owned first-party databases and partnering with first-party data providers to expand them, retailers that start making changes now will be better positioned to successfully scale their business and increase return on ad spend for continued success.

Ed Leahy is head of sales for Publishers Clearing House (PCH) Media, a leading data and identity solutions provider.