Losing third-party cookies means lost revenue - how to calculate the impact.

May 7, 2024

People continually ask – what is the impact of third-party cookie deprecation?

Deloitte Digital recently published a paper directly looking to answer this. And the easy answer is that there is significant revenue risk that your brand may face due to the deprecation of third-party cookies by major browsers in 2025…….. 

Deloitte Digital - Losing third-party cookies means lost revenue.  For everyone.

​The loss of third-party cookies will have a profound impact on digital campaign strategies and could result in substantial revenue losses for your company. 

According to a recent study conducted by Deloitte, 77% of marketing leaders expressed concern about the technology changes surrounding third-party cookies. 

The study projected that the average revenue risk for companies surveyed ranged from $91million to $203 million per year, with some companies risking even higher amounts. 

​This revenue risk calculation takes into account factors such as lost data collection, the inability to continue multitouch attribution (MTA) measurement, loss of reach and frequency optimization, and the inability to track and optimize ad content effectively. 

 

How to calculate the impact to revenue from loss of third-party cookies

To calculate risk for study participants, we used their stated budgets and the most recently available Nielsen benchmark of 2.87:1 for Return on AdSpend (ROAS) for digital display advertising.

Example:

·        Digital Display spend =$100,000

·        Risk on revenue =$287,000

Considering in most developed countries with a high iPhone penetration (and thus Safari usage) we can safely assume that we are 50% of the way through and that this loss of revenue is already being felt.

How to mitigate this risk

To mitigate this risk, it is crucial to assess your brand's dependency on third-party cookies k and develop alternative strategies. 

​ Here aresome key points to consider:

1.     Digital Ad Dependency: Evaluate the percentage of your brand's overall ad impressions and digital campaigns that rely on third-party tags and platforms. 

Assess how and where you are using third-party platforms such as data management platforms (DMPs) and demand-side platforms (DSPs). 

2.     Third-Party Data Reliance: Determine the extent to which your brand relies on third-party data for customer acquisition and sales. 
On average, brands surveyed tap into 45 or more third-party data sources. 

​Consider transitioning to a customer data platform (CDP) to gain control over your data, manage customer privacy, and orchestrate campaigns using first-party data. 

3.     ​Digital Strategy: Assess the impact of third-party cookiedeprecation on your digital strategy. 
Multitouch attribution (MTA) measurement, which heavily relies on third-party cookies, influences how campaigns are optimized. 
Identify alternative strategies for retargeting and abandoned shopping cart customers, as these tactics will be affected by the loss of third-partycookies. 

4.     Comprehensive Third-Party Assessment: Conduct a comprehensive audit ofyour owned and third-party systems to identify areas of reliance on third-partycookies. 

​This assessment will help you develop a roadmap toaddress critical areas first and adopt new strategies quickly.

We recommend the team at Civic Data – info@civicdata.com.au

 

​The loss of third-party cookies will have a profound impact on digital campaign strategies and could result in substantial revenue losses for your company. Run the culculation and assess the revenue rick to your business.

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