The Cookie Crumbles: With third-party cookies phasing out, can direct mail fill the marketing gap?

Since 1994, third-party cookies have been a crucial component of the digital marketing toolbox. However, this is set to change with their phase-out. But why are third-party cookies being limited, and how can physical mail take centre stage to fill their place?

What are cookies?

Cookies are tracking data used to gather and store information about your online actions and behaviour as you navigate the internet. There are two types of cookies:

• First-party cookies– These are stored and used by the domain that you visit directly. Website owners use them to store your data, including preferences and login details, and use them to personalise your next visit to their website.
• Third-party cookies– These are small data files placed on your device by a website other than the one you’re currently visiting. Typically used by advertisers and analytics companies, they track your browsing behaviour across multiple sites, allowing advertisers to build a profile of your interests and deliver targeted ads.

What’s the issue with third-party cookies?

Third-party cookies allow for extensive tracking across the internet. Although originally designed to improve browsing experiences, they now raise concerns over privacy—who is gathering this data and how is it being used?

These concerns have led online shoppers to become more cautious about sharing their data. Privacy issues have prompted 37% of global shoppers to use ad blockers to avoid being tracked. Furthermore, websites are now required to detail what data they collect, how it’s used, and how long they retain it. They must also ask for permission to store users’ data, leading 22.6% of consumers to automatically opt out.

What’s happening with third-party cookies?

Google is set to phase out third-party cookies in Chrome throughout 2024, following Safari and Firefox, which have already blocked them by default for most users.

Is the phase-out of third-party cookies a problem?

Many digital marketing platforms—at least 75%—rely on third-party cookies for advertising. Without them, companies will need to shift to using first-party data. While first-party cookies are beneficial for reaching existing customers, it will be harder to target prospects or those who opt out of first-party cookies. As a result, digital messages, like banners and emails, may become less personalised.

Direct Mail Could Be The Answer to Acquiring New Customers

The loss of third-party data will prevent businesses from acquiring customers by using their third-party cookies to attract them through targeted advertising.

Partially addressed mail (PAM) could fill this gap.

Utilising partially addressed mail is a highly effective tool for customer acquisition. PAM allows businesses to target households based on demographic or geographic criteria without needing specific personal data. This approach expands the reach of businesses to potential new customers who fit their target profile and/or look similar to their existing consumers while staying within data protection regulations like GDPR. By delivering relevant, personalised offers or information to homes through PAM, businesses can increase brand visibility, generate leads, and attract new customers in a cost-effective manner, without relying on third-party cookies.

Mail is also a great way of retaining customers. 

Using first-party cookies for email marketing is a growing challenge: it is a constant fight for businesses to be seen in an overly crowded email inbox. Think of the deluge of Black Friday emails you receive—many will be flagged as spam or deleted immediately. Contrast that with the few direct mailers that might stay on your kitchen table long after the event. This is where direct mail excels. It offers a tangible, personal connection that digital channels often lack.

Direct mail is ideal for customer retention. It allows businesses to send tailored promotions, updates, and exclusive offers to existing customers based on their preferences and past purchases, fostering loyalty. Additionally, direct mail maintains regular touchpoints, strengthening relationships and encouraging repeat business. Unlike emails, which can be easily ignored or lost in spam folders, physical mail is typically interacted with 3 to 5 times, offering higher engagement rates, and driving commercial action.

 

As third-party cookies disappear, businesses will need to rethink their marketing strategies to maintain both acquisition and retention efforts. Direct mail, with its ability to reach potential customers through partially addressed mail and build stronger connections with existing ones, offers a compelling alternative to digital-first approaches. While the digital landscape grapples with new data regulations, direct mail stands out as a trusted, tangible, and GDPR-compliant method. It provides businesses with a valuable tool to deliver personalised messages, foster loyalty, and maintain consistent engagement, positioning itself as a strong contender to fill the marketing gap left by the loss of third-party cookies.

Contact our team of experts today to get started on your mailing journey, or to reignite mail as an essential component in your marketing mix.

 

 

References:

[1] Hootsuite, Kepios, https://www.hootsuite.com/resources/digital-trends, 2022

[2] Statista, https://www.statista.com/statistics/1453901/consumers-likelihood-opt-out-first-party-cookies-uk-website-type/, 2024

[3]  MarTech https://martech.org/75-of-marketers-still-rely-heavily-on-third-party-cookies/#:~:text=A%20full%2075%25%20of%20marketers,cookies%2C%20according%20to%20the%20study.

[4] Michael Feeley, NewDigitalAge, https://newdigitalage.co/general/consumers-more-willing-to-share-data-in-2022-finds-study/#:~:text=The%20majority%20of%20consumers%20(47,clear%20benefit%20for%20doing%20so. 2022

[5] Duncan MacRae, MarketingTechNews, https://www.marketingtechnews.net/news/56-of-uk-consumers-always-accept-cookies-without-thinking/#:~:text=Despite%20the%20well%2Dpublicised%20risks,experience%20tends%20to%20trump%20security., 2023