August 14, 2021 5 minutes read
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Cookies work in a similar way: A cookie tracks the consumer so that the advertiser can target the consumer more effectively. Although cookies have had their place, they are slowly losing their appeal.
Google and Apple made some major changes to cookies recently, foreshadowing the end of cookies. Since then, many have been discussing how this will change the ad landscape. But there's another key point to make: how these changes impact B2B and B2C marketers differently. This article will provide more information about the likely impact on each business model.
Comparison of first-party and third-party data
It is important to understand the differences between B2B and B2C data before you dive into the B2B vs. B2C debate. First-party data refers to data that a company owns on its website. These cookie changes do not affect first-party data as it is already owned by the company. Businesses will be able to track visitor activity on their websites and channels and see it as they wish.
However, third-party data is being affected. This data tracks users across the internet on websites other than yours. This data could include purchase history, website browsing, and other information.
Similar: How a privacy-centered social media platform acquired millions of customers with no paid marketing
B2B vs.
B2B companies must be looked at differently than B2C when it comes to the effect cookie deprecation has on business advertising. Their go-to market strategies are totally different. B2B marketers have stopped looking for large markets in recent years. Many are choosing to create an account-based experience.
How does this relate to cookies? The goal of getting rid cookies is to preserve consumer privacy. In a cookie-free environment, consumer data will not be tracked individually but instead at a group level. ABX does not identify individual users, but only accounts or organizations. This is in line with the deprecation and use of third-party cookies. Account-based targeting with ABX is akin in effect to cohort targeting. B2B companies that use true ABX with intent data already employ an effective form of context targeting and are well-positioned to compete in a cookieless world.
B2C companies, however, are quite different. These companies are primarily focused on individuals and shifting to a cohort-level data level will definitely change advertising strategies. Google claims that third-party cookies will be eliminated over the next year. This is a more gradual transition than most people realize. Google is developing alternative ad campaigns that claim to generate at least 95% more conversions per dollar than cookie-based advertising.
Related: How Google's Upcoming Privacy Settings will Affect Digital Marketing
Prepare for Change
What next now that you are aware of the differences in how cookie deprecation affects B2B and B2C businesses? Each category of companies must make plans to modernize and take advantage of the privacy-first data.
B2B businesses can best adapt to these changes by first evaluating whether their technology is up-to-the task.
Consider whether your account-based and marketing automation solutions draw on multiple data sources or if they rely primarily on cookies. The former would be ideal as you'd be greatly affected by the latter.
Think about how your systems source intent data. Is it through IP-address identification? Cookies? The former is what you want. It is a good idea now to look at other options if your tech isn't set up for these types of changes.
You should be aware of red flags when certain solutions are being touted as highly effective (e.g. Email signature spyware and chatbot software can clutter your data and create inaccurate signals.
B2C companies need to keep their current ad strategies, but remember that cookie-free advertising will soon be the norm. Be open to new ad strategies by big players such as Google and keep an eye out for them.
Although it is always a positive that technology providers place consumers' privacy first, there are some challenges. You can maximize the next wave of advertising if you are aware of how these changes might affect your business. Your ad strategy does not have to be in decline.
Related: Privacy is important for your business, your brand and your future
