The world of digital marketing is changing. The use of third-party cookies has enabled digital marketers to use performance and attribution tactics to deliver highly targeted campaigns and maximize advertising return on investment. In an era where data compliance is becoming table stakes, online marketing may be relegated to general contextual advertising tactics unless brands employ first-party data and implement data-driven marketing strategies.

Building and maintaining trust on- and offline is essential for brands looking to connect with their audiences.

The amount of personally identifiable information used in marketing tactics has raised privacy concerns. Consumers and governing bodies worry about the implications of being tracked in their browsing activities. The heightened sensitivity around privacy has resulted in the elimination of third-party cookies, tighter governmental restrictions on the handling of consumer data, and a confounding situation for many digital marketers.

Regulatory changes and ongoing legal pressure are transforming user experience on websites. Cookie notices, which advise users on which data they store and how they use it, are now common practice. Cookie notices are mandatory in the European Union and California and are common on many websites in the United States. These notices inform website visitors about the usage of cookies and allow consumers to choose the type of information that will be shared with the website. Companies have leeway over how to execute cookie notices, which has led to a variety of cookie notice iterations across websites.

What are Cookies?

Websites place a “cookie,” which is a small text file, onto consumer browsers. These allow the individual user experience to be customized. Cookies were first invented in 1994 by Lou Montoulli, a twenty-three-year-old engineer at Netscape, which was one of the first commercial browsers. Montoulli and the Netscape team wanted to provide a way for websites to remember the user without tracking their browsing activity. Within two years, advertisers began using cookies to track consumers. A free and open web is funded by advertising, and the cookie has been part of the currency used in this funding.

There are several different types of cookies used by digital marketers. These include first-party cookies, session cookies, persistent cookies, secure cookies, and third-party cookies. First-party cookies are helpful to the user experience. When a person visits a website, a first-party cookie is placed to retain useful information that helps with their on-site experience. Login credentials, language preferences, and other personal preference settings are some of the ways in which websites use first-party cookies. Many websites now have a cookie policy disclosure pop-up banner that explains how cookies are stored and used for marketing purposes. 

Session cookies are not used for tracking. These are most often used on e-commerce websites to store items added to a shopping cart by a consumer. They also help web developers ensure faster page load times. When a user logs off or closes the browser, session cookies are removed. Persistent cookies retain logins on websites once a browser is closed. These cookies allow a website owner to analyze user behavior and sessions to improve the overall user experience. Secure cookies are transmitted by encrypting the cookie data that is transmitted between the website and the browser.

Third-party cookies occur when websites allow other companies to place a cookie on the browser of a user, which enables them to serve targeted advertisements based on the user’s browsing history. Third-party cookies are also used to study visitor behavior and website performance. Advertisers use third-party cookies to fill the gap in reaching audiences when the first-party data on hand is not organized or voluminous enough to deploy in marketing tactics. Third-party cookies enable the targeting of specific individuals with personalized marketing messages and provide attribution that allows companies to understand the consumer’s path to conversion.

There are additional ways for companies to track individual consumers online which do not involve the placement of cookies. These include the use of Internet Protocol (IP) address, operating system (OS), browser type, and device ID to stitch together a unique digital fingerprint. This technique successfully identifies most users, including those who have opted out.

How to Build Trust and Relationships with Website Visitors

Here are a few tactics that can help website owners build trust and relationships with the people who visit their site:

1 - Include a Privacy Policy and Cookie Opt-In. The mere presence of a clear privacy policy and cookie acceptance can build trust by letting the person visiting the website know that there is a clear and established plan.

2 - Provide something of value in exchange for first party data. Newsletter enrollments, free guides, etc. are a good way to collect this first-party data. The use of first-party data within a data-driven marketing strategy can yield new qualified prospects, improved performance, and increase customer satisfaction.

3 - Make sure your entire online presence is synchronized. Consistency is important. We know that the modern customer journey is a winding road. It's also crucial to have Name, Address, and Phone Number information synchronized, as it sends a signal to search engines that the business is reliable and trustworthy.

Conclusion

The evolving landscape of online privacy, driven by regulations and consumer expectations, necessitates a shift in how websites approach user experience. While cookies have long been a cornerstone of personalized web experiences and targeted advertising, their use is now under greater scrutiny. Transparency and user control are paramount. Implementing clear cookie notices, respecting user choices, and offering valuable alternatives for data collection, such as incentivized first-party data capture, are crucial steps in building trust. Beyond mere compliance, these practices demonstrate a commitment to user privacy, fostering stronger relationships with website visitors and ultimately contributing to a more sustainable and ethical digital ecosystem. By prioritizing transparency and user empowerment, businesses can navigate the changing regulatory environment while simultaneously enhancing user trust and loyalty.

You can find cookie compliance apps in Duda's App Store, and the platform makes it easy to establish a clear Privacy Policy.