May 12, 2025

The digital marketing landscape is undergoing a seismic shift, with media marketers increasingly moving away from third-party cookies toward first-party data strategies. This transition, driven by privacy concerns, regulatory changes, and evolving consumer expectations, has been further complicated by Google’s recent decision to reverse its plan to eliminate third-party cookies in Chrome. Despite this reversal, the momentum toward first-party data remains strong.

So, why are marketers making the switch and what are the strategies they’re employing to succeed in a cookieless future?

Why the Shift to First-Party Data?

• Privacy Regulations and Consumer Demand
  The introduction of regulations like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S. has placed strict limits on how companies can collect and use consumer data. These laws emphasize user consent and transparency, making third-party cookies—often used to track users across websites without explicit permission—less viable. Consumers are also more privacy-conscious, with studies showing that 64% of internet users are concerned about how their data is used. First-party data, collected directly from users with their consent, aligns with these regulatory and consumer demands.
  
  
• Declining Effectiveness of Third-Party Cookies
  Even before Google’s reversal, third-party cookies were losing ground. Apple’s Safari and Mozilla’s Firefox have blocked them by default, and ad blockers have surged in popularity. These factors have reduced the reach and reliability of cookie-based tracking. First-party data, sourced from direct interactions like website visits, app usage, or customer surveys, offers a more accurate and sustainable alternative.
  
  
• Google’s Reversal on Chrome Cookies
  Last month, Google announced it would not phase out third-party cookies in Chrome as planned, opting instead for a user-controlled approach where individuals can opt out of tracking. While this decision provides a temporary reprieve for marketers reliant on cookies, it doesn’t change the general trend. The opt-out model is likely to reduce cookie effectiveness as privacy-savvy users disable tracking. Google’s Privacy Sandbox, which aims to balance privacy and advertising needs, is still evolving, leaving marketers uncertain about its long-term impact. This uncertainty has accelerated the shift to first-party data, which offers greater control and reliability.
  
  
• Building Trust and Personalization
  First-party data enables marketers to foster trust by being transparent about data collection and usage. When customers willingly share information—through loyalty programs, subscriptions, or preference settings—they expect personalized experiences in return. Unlike third-party cookies, which often deliver generic or intrusive ads, first-party data allows for tailored campaigns that resonate with audiences, improving engagement and conversion rates.

Strategies for Transitioning to First-Party Data

To navigate this shift, media marketers are adopting innovative strategies to collect, manage, and leverage first-party data effectively. Here are the key approaches:

• Enhancing Data Collection Through Value Exchanges
  Marketers are incentivizing users to share data by offering clear value in return. For example, retailers might provide discounts or exclusive content in exchange for email sign-ups or account creation. Media companies like The New York Times have successfully used subscription models to gather first-party data, offering personalized content recommendations to subscribers. These value exchanges ensure users feel rewarded for sharing their information, fostering trust and long-term engagement.
  
  
• Leveraging Customer Relationship Management (CRM) Systems
  CRM platforms are becoming central to first-party data strategies. By integrating data from website interactions, email campaigns, and purchase histories, marketers can create comprehensive customer profiles. Tools like Salesforce and HubSpot allow for segmentation and targeting based on user behavior, enabling highly personalized campaigns. For instance, a travel brand might use CRM data to send tailored vacation offers based on a customer’s browsing history or past bookings.
  
  
• Contextual Advertising as a Complement
  With third-party cookies less reliable, marketers are turning to contextual advertising, which targets ads based on the content of a webpage rather than user behavior. For example, a sports brand might place ads on fitness blogs or during live sports streams. By combining contextual strategies with first-party data, marketers can deliver relevant ads without invasive tracking, maintaining effectiveness in a privacy-first world.
  
  
• Building Direct Relationships Through Owned Channels
  Owned channels like email newsletters, mobile apps, and loyalty programs are goldmines for first-party data. Marketers are doubling down on these channels to engage users directly. For instance, beauty brand Sephora’s app collects data on user preferences and purchase habits, enabling personalized product recommendations. These direct relationships reduce reliance on third-party intermediaries and create a feedback loop for continuous data enrichment.

The Road Ahead

Google’s decision to retain third-party cookies in Chrome has given marketers a temporary buffer, but it’s not a reason to delay the transition to first-party data. The combination of regulatory pressures, consumer expectations, and technological shifts makes first-party data the foundation of future-proof marketing strategies. By prioritizing transparency, investing in robust data infrastructure, and delivering value to customers, media marketers can not only adapt but thrive in this new era.

The shift from cookies to first-party data is more than a technical change—it’s an opportunity to build stronger, more meaningful connections with audiences. As the industry evolves, those who embrace this approach will be best positioned to deliver personalized, privacy-respecting campaigns that drive results.