Dec'22·Jordi Capdevila·3 MIN
Why all business leaders should care about the cookieless future
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We often hear business leaders talk about a foundational element they attribute business growth and brand value to - customer experience. All business strategies, campaigns, and services are centered around one common factor, customers. A key factor that drives revenue numbers and business expansion is enabling a customer experience that people love. While customer experience all these years focused on gathering data on what customers liked and feeding them with just that, all of this will change with the advent of cookieless future.
In today's context, data privacy is an integral part of this experience. As it's popularly referred to in marketing, 'the cookieless future' is the next big thing changing the global advertising game. Third-party cookies, the small data packets that fueled advertising strategies for decades, will soon be history. So, how does this affect businesses, and why should leaders spearhead a well-thought-out shift in advertising practices?
To begin with, how does customer experience impact businesses?
Customer experience entails everything from the start of the journey when a prospect engages with a business to the sales, post-sales, and customer services experience. Let's take a look at the value of CX strategy and its impact on business growth -
On brand loyalty, 96% of customers say customer service is an essential determining factor. 84% of companies that work on improving CX reported an increase in revenue, while CX mindset-driven businesses have powered 4-8% higher revenue growth than their counterparts.
CX has a direct impact on revenue numbers and brand loyalties. Brands with superior customer experience bring in 5.7 times more revenue than competitors, and 73% of consumers say good experience is critical in influencing their brand loyalties.
Another important metric for business leaders is retention; loyal customers are 5 times more likely to purchase again, and brands that deliver great CX win advocates who are 4 times more likely to refer a friend.
If it needs to be clarified, ensuring a great customer experience is integral for business leaders. That's why the phase-out of third-party cookies and the move into the cookieless world should matter to every business leader.
What must business leaders look out for in the cookieless future?
Netizens applauded Google's announcement about removing third-party cookies as it brought a much-needed reform in data privacy. Governments worldwide have already begun paving the way by implementing stringent data privacy laws like the EU's GDPR, California's CCPA, and South Africa's POPIA.
Complying with these data privacy regulations is a must for business leaders to avoid hefty fines and win customer trust. Regulatory compliance is just one part of the story. Business leaders also need to create advertising material that appeals to consumers. In the cookieless world, how can brands connect and engage with consumers?
Consumers want brands to deliver ads that do not intrude their browsing experience and lie within their realm of interest. Business leaders must focus on creating a connected, omnichannel experience by rethinking their strategies. While first-party data continues to gain prominence as an alternative to third-party cookies, the cookieless future is also powering the comeback of contextual advertising.
For business leaders, contextual advertising will be a linchpin in creating future-ready, comprehensive strategies. From empowering the workforce to winning over customers and turning them into brand loyalists, contextual advertising has all the ingredients to prepare businesses to go big in the cookieless world.
- Contextual advertising leverages AI to understand the content and context of web pages. Post-analysis, it delivers non-intrusive ads on relevant websites, targeting the desired audience without using cookies.
- Contextual intelligence enables brands to enhance their understanding of consumer interests. This consumer intel also enables data-driven decision-making.
- Contextual ads rank high on brand safety and brand suitability. Contextual AI analyzes a page's written and visual content, offering brands a suitable environment where the values and ideas align seamlessly.
- Contextual advertising empowers brands to avoid ad placement alongside harmful content like terrorism or hate speech, enhancing brand safety measures.
- Going a step further, contextual AI analyzes the content to understand the meaning and nuances to ensure the ads are rendered alongside contextually relevant and meaningful content, elevating brand suitability.
For business leaders, it is essential to safeguard their brand's identity and create strategies to generate revenue. Contextual ads are highly personalized and speak more directly to consumers. Leaders constantly evaluate solutions to find more cost-effective ones that address their problems. Contextual AI offers a single solution that helps overcome challenges and build an effective strategy for the cookieless world. Unlike behavioral advertising, which relies on collecting, analyzing, and reporting huge volumes of personal user data, contextual ads are a more cost-effective solution.
Creating contextual intelligence-based advertising strategies allows brands to build personalized audience segments and deliver ads at a highly granular level, eliminating impression wastage. Brand safety and suitability provide context-based protections by bridging the divide between risk and opportunity, providing leaders with a platform that fuels better consumer engagement and helps build a memorable and consistent brand identity.
We at Seedtag are enabling leading global brands to create compelling contextual strategies that deliver 3x brand favorability, 6x engagement rate, and increase purchase intent by +36%. For more details, get in touch.