A new study conducted by Corvidae, in partnership with Censuswide, has found that retail marketers aren’t sufficiently prepared for the impending removal of third-party cookies by Google.

Google has announced they are pushing ahead with the change from Q3 2023 – which will have some big ramifications for marketers and their ability to accurately track activity.

Cookies are files created by websites you visit. By saving information about your visit, they can keep you signed in, remember preferences and present you with relevant content based on information previously stored about you.

While first-party cookies are created by the site you are visiting, third-party cookies are created by other sites via things like embedded content from other sites (images, ads, and text). Contentiously, any of these sites can save cookies and other data to, as Google describes it, ‘personalise your experience.’

Over 80% of marketers are still reliant on cookies to support their marketing activities and measurement, with just over half (51%) stating that finding a new solution is only a medium priority for them.

85% shared that they believe there are sufficient solutions for the removal of cookies. This is despite almost half stating they will be using Google’s replacement technologies, which have been proven to be ineffective through recent case study tests.

The new Marketing in the Cookieless Future: How the Removal of Third-Party Cookies will Impact Retail research commissioned by Corvidae surveyed 150 CMOs, marketing directors, performance marketing directors, ecommerce directors, heads of analytics, and heads of data within the retail sector, identifying how retailers are preparing for the change, as well as the challenges they will face in 2023 and beyond.

For marketers, making the move from a technology that has been the bedrock for reporting and analytics for decades is difficult. That’s reflected in the results from the survey, as a quarter have placed finding a replacement solution as either low priority or not on their radar at all.

From the results, it is clear that many businesses are still burying their head in the sand. 75% of recent event attendees also stated that they didn’t believe Google would even remove third-party cookies at all.

With 97% of respondents sharing they are concerned that the loss of third-party cookies will impact their ability to understand marketing effectiveness, the clock is ticking for businesses to begin making the move to solutions that are ready for the cookie-less future and that will stand the test of time.

Are cookie replacements cut out for the future? The evidence is damning

Despite the urgency to find a new solution seemingly lax amongst marketers, a disparity between certain functions was highlighted within the results.

Ecommerce directors (38%) and performance marketing directors (43%) have it marked as a high priority, which is far above the level of respondents as a whole. This could be caused by their proximity to marketing reporting and optimisation, compared to other functions surveyed.

Whether there is urgency or not, newly adopted solutions need to be fit for purpose,  and the report findings around this topic show that this likely won’t be the case for most.

The headline statements include:

• 89% are confident identity graphs and tools are a compliant solution
• 84% plan to make the switch to GA4
• 43% reviewing Google’s replacement technologies

The majority still believe they can rely on tools like the IAB’s Unified ID – already ruled to be uncompliant with GDPR by the EU – or Chrome’s tools, despite their likely 2% opt in rate.

While most intend to use GA4 in the future despite the 2022 EU finding ruling it uncompliant under GDPR and local DPAs in France, Italy, Austria and other EU countries declaring it illegal, creating hundreds of legal cases already.

With marketers, and especially those in retail, under pressure to drive greater results with less to play with, ensuring measurement stays unaffected by the impending removal of cookies is crucial.

“This report shows that continued reliance on dominant industry analytics platforms from Google and Adobe is no-longer viable for ad measurement and optimisation in a cookie free world,” said Chris Liversidge, CEO and founder at Corvidae.

He added: “Embracing innovative AI platforms like Corvidae.ai delivers huge returns and puts control back in the hands of advertisers as well as offering a safe, compliant data foundation going forwards.

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“Using AI for measurement has given our customers revenue increases of over 70% and acquisition costs more than 20% lower than cookie-based solutions.

“Over the course of the next year as the cookie phase-out continues there will be increasingly large gaps between the winners and losers and I expect to see major disruption in the status quo for brands who adopt early and those who lag behind.”