As the digital world continues to change, businesses in the Asia-Pacific (APAC) region are facing a big problem: the end of third-party cookies. According to a global survey done by Adobe, 79% of brands in the APAC region still rely heavily on third-party cookies, and 56% of those companies think their businesses will suffer if third-party cookies go away.
Businesses are failing to make the necessary changes to their data strategy because 52% of APAC leaders continue to spend at least half of their marketing budgets on cookie-based activations, and 81% continue to significantly rely on third-party cookies due to their perceived efficacy. The poll also showed that the ambiguity surrounding cookie deprecation is leading to misunderstandings and, in some cases, inaction. According to the survey, 38% of APAC leaders have not changed their marketing approach because they feel there is not enough urgency.
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The majority (86%) of APAC leaders at cookie-dependent companies claim that at least 30% of their total potential market is in settings where third-party cookies don’t work, such as social media platforms and on Apple devices. This indicates that a heavy reliance on third-party cookies is about to backfire on brands. Also, many APAC leaders think that the end of third-party cookies will be bad for their companies. In fact, 34% of them say that it will “devastate” their businesses.
Businesses must modify their tactics if they want to remain competitive. The advantages are evident in all important currencies, from increased customer happiness and loyalty to a stronger bottom line. Businesses that don’t diversify their approaches are losing money now and jeopardising their chances of securing competitive advantages in the future.
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With the eradication of cookies last year, major digital company Google is leading the way towards a cookie-free society. Also, it has shown off Topics, a new Privacy Sandbox idea that is billed as a way to get rid of cookies from third parties. Although a third (38%) of businesses are still using cookies, many others have the intention to shift but are putting off making the necessary changes.
Although brands may understand the dangers of following this path, they must adapt to remain competitive. With the cookieless frontier continuing to expand, the impacts of this mistake will only compound with every passing quarter. Companies that fail to diversify their strategies and move beyond cookies are putting their future at risk.
