The future of collecting privacy-compliant consumer data (yes, without cookies)

With cookies nearly in the rearview mirror, and state and federal regulations concerning privacy finally ramping up, it’s time we considered what the future of data collection looks like

It’s happening. Finally, After years and years of setbacks, Google is joining Safari and Firefox in getting rid of cookies.

Well, for 1% of users.

In the first few months of 2024, Google plans to execute a plan that will remove third-party cookies for one out of every one-hundred users–a small test that will, ostensibly, lead to the complete deletion of cookies on the browser later in the year.

Part of a plan to comply with increased privacy regulations and user reservations when it comes to data collection, as well as a means to further its own walled-garden solution, the Privacy Sandbox, the company’s plan is (another) wake-up call that it’s time to pursue consumer data collection in a way that’s both cookieless (if you’re not doing so already) and puts consumers at ease at the same time that it complies with increasing state and worldwide guidelines.

Google’s plan

While Google’s plan masquerades as a privacy-conscious approach, it replaces third-party with its own browser-exclusive solution. Released in a Beta version in September alongside Chrome’s latest update, Google’s Privacy Sandbox replaces its earlier Federated Learning of Cohorts (FLoC) solution, which drew criticism for not really being privacy compliant, and instead allowing Google to gatekeep user data.

The Privacy Sandbox assigns interests to a user based on their browsing history, which are then shared with advertisers to create targeted ads. Users can access these categories, which refresh every four weeks, and delete ones they would prefer not to see targeted advertisements for.

Like other walled gardens, the deprecation of third-party cookies forces advertisers to instead use Google’s solution if they would like to target consumers using Chromium-supported browsers–and also skirts other aspects of privacy that users–and marketers–worry about. 

Increasing state regulations

While Europe has had a comprehensive user-protection plan in place for a few years now–the GDPR, which launched in 2016–only a few states (most notably California, Colorado, and Virginia) have similar guidelines in place, and few are as comprehensive. Currently, there are no federal laws protecting user privacy in the U.S in a similar way–instead, we have a hodge-podge of laws covering health, credit data, or other subsects of privacy protection. 

However, more and more states are considering passing guidelines. About half of all U.S. states as well as Puerto Rico have introduced or are considering introducing consumer privacy bills. While some guidelines are stronger than others (California’s vs. Virginia’s weaker guidelines, for example) it’s important to consider policies that comply across-the-board, rather than trying to satisfy each coda within each state individually.

Though we don’t know what to expect when it comes to state regulations in the future (or if federal regulations will ever be in place), it’s better to act with the expectation that more regulations will appear, rather than fewer. 

People want privacy 

Beside that, consumers themselves prefer more privacy rather than less.

According to a study by Pew Research Center, 81% of those surveyed believe the  potential risk of data collection by companies outweigh the benefits. A study by McKinsey & Company found that consumers are more likely to trust companies that limit the use of personal data and respond quickly to data breaches. Other studies find similar concerns with data collection and privacy–and there’s the risk that personalized ads come off as “creepy” rather than helpful.

There’s a fine balance between personalization and privacy regulation. As consumers seek trust in their relationships with companies and a level of targeting that delivers preferred content, but doesn’t border on disturbing, it’s imperative to seek solutions that consumers agree with–on top of regulatory state bodies and technological changes.

The future of privacy solutions

While we have yet to see how Google’s plan will pan out, nor do we know if stronger privacy laws will ever be enacted on a wide scale in the United States, it makes sense that marketers should prep for what consumers want, and strive to meet the balance between privacy consciousness and still delivering personalized and contextual ads. 

The best place to start seeking solutions to cookie deprecation and increasing regulation is right at home–with first-party and opt-in data that users provide themselves. Additionally, other platforms, like CTV, allow for avenues of data collection that can bolster walled-garden solutions and user-provided data. 

Increases in contextual and native advertising as also solutions that future advertisers will likely look to–especially as the ROI for such channels and strategies makes itself apparent.

Finally, ensuring that consumers trust you with their data by protecting against breaches and data violations and demonstrating value exchange–as well as a gratifying customer journey– will underpin a future that moves toward more privacy-conscious solutions, even as browsers, consumers, and marketers struggle with an uncertain future today.