Google’s recent news to delay the phase-out of third-party cookies to early 2025 reveals once again that this transition is much more difficult than anticipated. Marketers and advertisers are well aware of the coming changes in online tracking protection, and have now been given more time to prepare for the cookieless world.

A 2024 Statista report shows that 75% of marketers rely on third-party cookies worldwide. This reliance stems from the importance of using data to truly understand audiences at a deeper level and segment them by predetermined factors.

Audience segmentation is commonly referred to as the practice of dividing target audiences into groups based on behavior, location, past interactions, engagement, preferences, and other criteria. In the evolution of digital advertising, demographic segmentation dominated ad strategies in the 1950s, offering broad categorization based on age, gender, and income. With the advent of the World Wide Web, cookies became a cornerstone of advertising. Online activity allowed for a more precise understanding of audiences.

With cookies’ foreclosure knocking at the door, and their over-reliance apparent, businesses face the challenge of adapting to a new privacy-centric digital landscape whilst trying to reach audiences effectively.

Why You Shouldn’t Panic About The Cookie Exit

By tracking website visits, marketers infer interests and intent. However, visiting a website does not always equate to a strong intent to purchase or engage with a brand. It's difficult to deduce the depth of interest behind a click or a page view as online actions can be impulsive or non-committal. Third-party cookies have their limitations and aren’t a bulletproof method for targeting.

Echo Analytics & GeoPersona

Echo Analytics, a global leader in geospatial data analytics and business intelligence, introduces GeoPersona, a state-of-the-art tool for audience segmentation based on real-world mobility patterns. In light of the cookie exit, this solution offers future-proof targeting capabilities.

Real-world data segmentation offers key advantages over cookie-based methods:

• Enhanced behavior insights: Real-world data provides stronger indicators of intent based on physical locations frequented by individuals, unlike online activities.
• Privacy-centric approach: GeoPersona collects anonymized location data, ensuring privacy by avoiding the use of personally identifiable information (PII). This data is then aggregated and segmented using machine learning, resulting in non-PII audience segments that adapt to changing behaviors.

Echo’s approach to segmentation is founded on the idea that the places people frequently visit uncover much about their preferences, lifestyles, and purchasing behaviors.

For example, consistent visits to sneaker retail spots could signal an interest in shoes, while regular attendance at high-end restaurants may indicate a taste for high-end food. GeoPersona allows advertisers and marketers to analyze these patterns and construct a detailed profile of consumer segments based on multiple categories. It’s the granularity businesses need to tailor marketing strategies effectively.

The removal of third-party cookies doesn’t mean armageddon for advertisers and marketers. Real-world data serves audience segmentation with greater effect and is indispensable across industries. Whether you need to target specific locations accurately, enhance targeting precision, optimize ad spend, or devise a strategy to expand your market reach, innovative post-cookie solutions are at the doorstep, ready to future-proof targeting capabilities.

—Marc Kranendonk, Content Manager, Echo Analytics