THIRD-PARTY IDENTIFIERS ARE GOING AWAY. WHAT’S THE IMPACT ON RESTAURANT XS MARKETERS?

THIRD-PARTY IDENTIFIERS ARE DISAPPEARING. 
HOW ARE TEST MARKETERS REACTING?

THIRD-PARTY IDENTIFIERS ARE GOING AWAY. WHAT’S THE IMPACT ON RESTAURANT MARKETERS?

Our survey results show retailers are anxious about what’s at stake, but there are solutions to this industry-wide problem.

Our survey results show restaurant marketers feel unprepared, but there are solutions to this industry-wide problem.

In January 2020, Google announced it would phase out third-party cookies (3PCs) in Chrome, and in June, Apple made a similar announcement about their device identifier for advertisers (IDFA).
As more third-party identifiers (3PIDs) go away, it’s important to ask: How do retail marketers feel about these changes and what are they doing to prepare?
We conducted a survey to find out.
The trend of deprecating third-party cookies (3PCs), mobile ad IDs and other third-party identifiers (3PIDs) isn’t going away—it’s actually happening right now. In January 2020, Google announced it would phase out 3PCs in Chrome, and in June, Apple made a similar announcement about their device identifier for advertisers.
We conducted a survey to find out exactly how restaurant marketers are feeling about 3PID deprecation—and what they’re doing to prepare.

Why does 3PID deprecation matter for retail brands?

Why does 3PID deprecation matter for restaurant brands?

of restaurant marketers are “very reliant” or “moderately reliant” on 3PCs for digital advertising

of restaurant marketers anticipate “moderate” to “significant” impact on their digital advertising efforts—more significant than GDPR and CCPA

of restaurant marketers think digital advertising will take a step backward in terms of personalizing and proving effectiveness

What’s at stake?

of restaurant marketers agree 3PID deprecation will have at least the same (or greater) impact as GDPR and CCPA

of restaurant marketers are “not very prepared” or only “somewhat prepared” for the shift

Here’s what’s on the table:

Identity

Identity is much more than just knowing how many guests you can reach online—it’s about knowing whom you’re actually talking to.

Personalization

Are we slipping back to more contextual, segment-based (and less effective) advertising?

Measurement

Whom have you been messaging? And which of these people bought something as a result? You need the hard numbers to prove your return and optimize spend.

How are restaurant marketers preparing?

Building a CDP

Advantage:
Drive more effective marketing through a single view of guests.
 
Challenge:
Aligning data for CDPs is a big undertaking, and many traditional CDP solutions aren’t built for enterprise-level businesses.

Shifting to first-party data strategies

Advantage:
Aggregating and aligning first-party data allows brands to better activate and prove marketing outcomes across channels.
 
Challenge:
This is a first for many restaurant brands. Experienced partners are essential to make sure they’re building the right data and organizing it appropriately.

Moving to contextual targeting

Advantage:
Doesn’t require 3PIDs.
 
Challenge:
A step back from individual-level advertising. Contextual targeting to a general audience is wasteful compared to optimized media audiences.

Restaurant recommendations

Maximize your collection and activation of first-party data.

Restaurant brands had to quickly shift their focus on driving foot traffic to offering takeout and delivery services due to COVID-19. This shift created a pool of valuable first-party data that some brands never had in the past.

 

Because data from 3PIDs will soon be harder to acquire and use effectively due to the deprecation, restaurant marketers need to continue to increase their first-party customer interactions and the data they collect from them. This allows you to serve relevant, non-repetitive digital media ads to consumers (who appreciate personalized content).

But don’t forget something: Data privacy should be at the forefront, and any exchange of data should be rooted in creating value for the consumer. Be clear about what data you’re collecting and how you’ll use it, and only collect what’s necessary.

Look for an ID solution based on first-party publisher data.

If you want to continue to drive ROI through digital media advertising across the open web without 3PIDs, the best option is to integrate with first-party data from website publishers.

 

Many publishers collect data from their users in exchange for content. Scaled and linked to a strong identity graph, this offers you a holistic view of your guest across channels. This data can be used to identify new and returning guests—and to personalize ads and experiences after 3PIDs are gone.

Consider this analogy: When it comes to print, mailers are sent to a known name and address. In digital, that “name/address” is a cookie or identifier that changes rapidly. Imagine you identify a list of people to send a series of mailers to. On the second mailer send, you find that a whopping quarter of the addresses are no longer valid because people moved. That is essentially what has always happened with identity solutions overly reliant on 3PIDs.

 

On the other hand, when you have a stable customer ID that’s not reliant on 3PIDs, you know when someone moves (to a different device or account) and where they go. You also know why they moved, because digital signals from their web behavior tells you their lifestyle.

This is a highly effective solution when it comes from an experienced vendor with scalable technology. However, most of these solutions are nascent and lack scale to be effective in the near-term.

Make sure you’re prepared for 3PID deprecation

 

Get the full research: Preparing for a world without third-party identifiers

Want to learn more?
Download the playbook to learn more about how a cookieless solution works
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Download our guide on developing an identity-first restaurant marketing mindset
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