What Google Chrome’s policy to end third-party cookies in 2023 means for pharmaceutical marketers.
What is happening?
In June 2021, Google announced it would phase out third-party cookies in late 2023. This was in response to new laws and regulations coming into play. Google’s plans are simply a reaction so that they comply with the local laws for the installation of cookies. For instance, the Privacy and Electronic Communications Regulations (PECR in the UK).
For anyone who uses Google Chrome (two out of three, according to Oberlo), this has implications. It’s not just Chrome that has announced this change in response to the regulations, other browsers will doubtless follow suit.
What does this mean?
To understand what this means for us we need to go back to basics a little and have a refresher on the four basic data types. As a pharmaceutical marketer, this will be familiar, but the recap is timely and always useful.
Browsers can use up to 8 types of cookies (believe it or not) – although first and third are the most common. Whilst we are revisiting the basics, it’s a good time to also remind us of what a cookie is. A cookie stores a small amount of data on a user's browser, this could be information on the site visited by that user, or maybe login information, as well as pages the user viewed on the site.
You can still serve personalised ads and reach consumers in a post-cookie world; the key point is – if you are deploying any kind of marketing cookies then you cannot do this without the consent of each website visitor.
The different data types of data
It’s important to understand the four main data types of distinctions and also to understand which campaigns you have booked and what data type they rely on.
ZERO-PARTY DATA
Zero-party data is data that a customer intentionally and proactively shares with a brand (i.e, Identity data customers want you to have).
First-party data
First-party data is information a company collects directly from its customers and data which you then own. A first-party cookie only gets data from the site the user accessed.
Second-party data
Second-party data is data you acquire from a trusted partner (or behavioural data which is shared between companies).
Third-party data
Third-party data is information collected by companies that don't have a direct relationship with consumers, or identity and behaviour data you have to buy. Of these types of data, third and first-party data are the most important for you to understand.
What does it mean for the pharmaceutical marketer?
The end of third-party cookies has implications for the pharmaceutical marketer. You need to analyse your digital marketing campaigns. For example, are you running any Account-based marketing campaigns? Are you running any retargeting campaigns? If so, read on.
Firstly, you need to fully understand what type of data type your digital marketing item uses. This involves a conversation with the publisher, they may need to loop the publisher’s data manager in the conversations. This is important. So, if you are running an awareness campaign across several publication sites with banner adverts, make sure your publisher is clear on what data type they are using to serve those adverts to their audience. Perhaps have a column in your advert booking excel sheet with the data type number (0-4). It’s good to know if you are too heavily reliant on one data type at the exclusion of others. A good global campaign will have a good mix.
If a publisher tells you that a campaign uses third-party cookies (which lets other sites access data, so organisations can serve an ad on social media platforms for the same product or service a user viewed on a company website) it would be astute to have plan B for 2023.
Out of the three data types above the main one for the digital advertisers are the third party. If we run a digital advertising campaign, we rely on third-party cookies to track website activity, so they can serve targeted social media advertising. If you are running an ABM campaign or any form of retargeting (Ad Roll) strategy, you will need to understand how to change your strategy to accommodate the change in policy.
However, let’s make it very clear: the end of third-party cookies is not the end of tracking. Google ending Chrome’s support of third-party cookies is also not the end of tracking in Chrome. There are options. Google Chrome does not just use third-party data, Chrome uses first-party data for user preferences and authentication and third-party cookies for advertising.
So, what options do we have as pharmaceutical marketers for alternative strategies in a post-cookie world?
Move to first-party data
One such strategy could be to rely less on the third party and move to zero or first-party – so use ‘customer provided data’. So instead of getting customer info from their devices, get it directly from the customer themselves. This could mean switching a retargeting programme to a lead gen programme (where the user downloads gated content in exchange for their info).
Moving to a ‘data-first’ approach (built with first-party data in mind) is an astute idea, however, you can incorporate first-party data with third-party data – you can build campaigns that involve both.
Also, remember you will need to review all your ‘first data’ frequently. Ask yourself, do you have a process in the plan to regularly validate the data to ensure it is accurate, consistence and usable. If not, the data you mine in 2023, maybe redundant in 2024. Not doing this largely invalidates a marketing campaign 12 months down the line, and we are not here to waste money, I’m sure you will agree.
Look to account-based marketing
The principle of account-based marketing (ABM) is simple, draw up a realistic target list of companies you want to work with and only target those (with specifically designed messages). To some degree, ABM does not need third-party data as the email domain will tell you where that person works. So, if you buy EDM from a vendor and want to run ABM, all the vendor needs are to match any email addresses that contain that company name in the domain. Simply strategy, but it works, and it could cut out the third-party issue.
Consider contextual targeting that doesn't rely on user data
Contextual advertising is the practice of users being served adverts based on the content they view instead of ads that match their data. Contextual ads match the website's content using keywords and topics. For example, a user reading content about HPAPI development might see an ad for drug development and manufacturing capabilities. Or Someone who searches a publisher’s website for CRISPR, would see adverts for gene editing services – you get the picture. This is a clever way of bypassing both first-and-third-party data and yet still serving relevant adverts and staying within the letter of the law.
Think of your own site’s data capture
As a pharmaceutical marketer, you’re not just concerned about programmes you are running on publisher sites, you need to turn your thoughts to your own site and understand how you might collect data here. Typically, you should expect <5% of visitors to grant consent if it is being properly collected (continuing to use a website does not equal consent, lack of information about what will happen invalidates consent, cookie-walling invalidates consent, and dark patterns to “nudge” the visitor into accepting cookies invalidates consent).
What does ‘good’ look like?
The NHS website shows what “good” looks like: A balanced prompt says what cookies will be deployed and why it doesn’t deploy them unless and until someone accepts them. The only exceptions are for cookies that do things like load-balancing, security, shopping cart maintenance or chat-box management (in other words essential ones to make the site work).
In summary:
Google announced it would phase out third-party cookies in late 2023
There is no distinction between first or third-party cookies in the law
As marketers, the buck stops with you to ensure you are compliant with the law
All analytics and marketing cookies require consent and must not be deployed until affirmative consent is granted.
You need to understand the difference in what data type each of your campaigns uses
You need to have a good mix of data types in your pharma marketing plans for 2023
You need to consider any of the three alternative campaigns if you rely heavily on campaigns with third parties
You need to ensure your own website captures (and uses) data correctly.
Putting thought and attention into these points is the starting point for any pharmaceutical marketer. The story however is fluid as the regulations are developing. To complicate matters further a number of European nations have banned the use of Google Analytics owing to the international transfer of data to the USA lacking any protective measures. By contrast, there are moves in the UK to potentially allow the use of analytics cookies without consent (however we have yet to see the draft bill and it will still need to pass through parliament).
The big issue is to abide by the law. Ultimately, the end of Google third-party cookies isn't the end of digital advertising. However, marketers should evaluate their strategies and consider alternatives to reach ideal customers. It’s important that you start thinking about this now, the change will be here before you know it, so be prepared. If you’re unsure, reach out to a friendly agency who can give you talk you through what all this means.
For more on data and analytics in the pharmaceutical sectors, and how we can help you, visit our section on web.
Acknowledgement: Thanks go to Paul Strout of GPDR Assist for his support in writing this article.
