eBOOK

The demise of thethird-party cookie
and the rise offirst-party data

How marketers can prepare for the future

ContentThe demise of the third party cookie

3

A short history of the cookie

4

Debunking myths around the digital cookie

5

1. Third-party cookies were the pinnacle of accuracy

5

2. Digital advertising will decline

5

The path forward: drive better customer experiences with first-party data

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6

1. A
 dd a Customer Data Platform (CDP) into your marketing mix

7

2. B ecome a purveyor of personalized experiences

8

3. Elevate your customer communications

94. Win with authenticated experiences

10The demise of the third-party cookie and the rise of first-party data

The demise of the third party cookie
Brands have leveraged cookies for years to track
website data, better target their ads and content
and improve customer experiences. However,there is a about to be a dramatic shift in the typesof cookies browsers will allow. Websites will
only be able to use the first-party variety going
forward. Google intends to phase out third-party
cookies on its Chrome browser in 2023, joiningthe ranks of Apple’s Safari and Mozilla’s Firefox.

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The demise of the third-party cookie and the rise of first-party data

Amid an industry reckoning around privacy,organizations worldwide are re-thinking their datacollection strategies to increase conversions. Nearly
half (49%) of all US digital media professionals polled byIntegral Ad Science in October 2020 cited third-party
cookie deprecation as one of their top three industry
challenges. Marketers have had four years to prepare forthis point, but are they ready?

A short history of the cookie
The cookie was invented in 1994 by Lou Montulli, an engineer at Netscapelooking to improve the memory of websites. He hoped to create something tohelp websites remember users that could not be used for cross-site tracking.
However, by the mid-1990’s, ad-tech firms had figured out how to employ
cookies to track users across the web. A multi-billion-dollar digital advertisingbusiness was born.

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The demise of the third-party cookie and the rise of first-party dataDebunking myths around the digital cookie
1. Third-party cookies were the pinnacle of accuracy

2. Digital advertising will decline

The reality is that third-party cookies always painted an incomplete picture.
Clearing the cache, sharing a browser with family members and ad blockers all
decreased their effectiveness. Marketers became reliant on third-party cookies
because they were a quick and easy way to target campaigns.

This is highly unlikely. Nearly 60% of the global population accesses the internet,
translating into approximately 4.66 billion current users, according to thewebsite Statista. EMarketer projects that digital ad spending will reach $524.31
billion in 2022.

There is some debate about whether ads using third-party cookies add value.
However, a University of British Columbia paper published in 2016 found that
under the right circumstances, people are 2.7% more likely to make a purchasewhen ads use cookie tracking.

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The demise of the third-party cookie and the rise of first-party data

The path forward: drive better customer
experiences with first-party data
The future of marketing depends on creating experiences that revolve aroundcustomers. By 2025, Gartner predicts that 40% of physical experience-based
businesses will improve financial results and outperform competitors byextending into virtual paid experiences. Now is the time for organizations toinvest in the collection, management, governance and quality of first-party data.
First-party data collected directly from customers is the most reliable way toidentify an audience. It can help businesses understand how prospects andcustomers engage with a brand, their journey to purchase and the best way toreach them.
In a January 2021 survey, 42% of US data professionals planned to increasespending on the use of first-party data in response to the demise of third-party
cookies. But can marketing leaders make that happen? Here is a primer ongetting started:

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The demise of the third-party cookie and the rise of first-party data

The path forward
1. A dd a Customer Data Platform (CDP) into yourmarketing mix
CDPs are becoming an indispensable tool in the modern
martech stack. In an August 2020 Advertiser Perceptions
study, 89% of US marketing tech decision-makers reported
that CDPs led to significant or some improvement on online
sales, with 92% also citing significant or some improvement
in ROI.
OpenText™ Experience CDP enables brands to createa single view of their customers by centralizing datafrom disparate sources. It helps marketers improve
personalization and increase conversion rates throughimproved targeting and segmentation. Integrated with
Google Marketing audiences, Experience CDP gathers
valuable segment and audience data in real-time –7/10

The demise of the third-party cookie and the rise of first-party data

allowing businesses to deliver the right interaction at
the right time, in the right place and the right context.
Using a CDP helps marketers create re-targetingcampaigns to help activate customer segments forcontinuous engagements across web, email and SMS. It
also provides enhanced customer acquisition analytics,
allowing marketers to understand ROI across campaigns
and unify cross-channel efforts.
Experience CDP integrates with OpenText™
TeamSite™ and OpenText™ Exstream™ to provide a
cohesive experience while continuously enrichingcustomer profiles.

The path forward
2. Become a purveyor of personalizedexperiences
Marketers often miss the mark in creating truly
personalized experiences.
According to Salesforce, 52% of customers expect
personalized offers and 66% expect companies tounderstand their unique needs, yet 66% still feel they
are treated like numbers. Statista reports that 90% ofUS consumers find marketing personalization very orsomewhat appealing.
However, marketers often find their personalization efforts
coming up short. A 2019 Infogroup survey found that 93%of US internet users reported they were not receiving
relevant marketing communications and almost 90% wereannoyed by irrelevant messaging. Interestingly, 44% ofrespondents said they would switch to other brands that
did a better job with personalizing content.

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The demise of the third-party cookie and the rise of first-party data

An Enterprise CMS such as OpenText TeamSite helps
create personalized content for targeted audiences.
In addition to serving up different content based on
a referring site, businesses can easily create highly
personalized experiences for known users. Providing
customers with tailored offers can help boost overall
conversion rates.
Using a CDP creates opportunities to elevate thecustomer experience with point in time personalization.
Tap into machine learning to generate individual userattributes such as lifetime value (LTV), customer
acquisition value (CAC), propensity scores and churnrisk. These values can then be used to create highly
personalized customer communications and support,
offering the right message, at the right time and in theright context.

The path forward
3. Elevate your customer communications
Email marketing pays off. Real-time welcome emails see
10 times higher transaction and revenue per email thanbatched welcome mailings.* Marketers are building on theiremail marketing programs, experimenting with enhanced
personalization, testing, measurement and acquisition. But
with inboxes growing more crowded, is SMS marketing thenext frontier?
Global SMS business traffic rose from 3.2 trillion messages
in 2019 to 3.5 trillion messages in 2020, according toJuniper Research. Consumers rate appointment reminders,a shipping or delivery status update and a booking
confirmation, change or cancellation as the most valuabletext messages received from businesses.
Managing omnichannel communications can quickly
become complex. Customer communication management
software such as OpenText Exstream can help transform

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The demise of the third-party cookie and the rise of first-party data

regular messages into highly-personalized, engaging
experiences across all digital and print channels.
Exstream enables businesses to reach customers
through their preferred channel and on theirpreferred device.
With a pre-built integration to Exstream, OpenText™
Notifications supports all communication channels
including email, SMS, push, voice and fax in a single
solution to help personalize and deliver messages toindividuals via their preferred channel.
Customer communications are vital in a cookie-lessworld. Brands need to earn trust and an integrated
approach to marketing and communications is crucial
to success.
* experian.com/assets/marketing-services/reports/welcome-best-practices-guide.pdf

The path forward
4. Win with authenticated experiences
Take personalization to the next level by providing ultracustom digital experiences for known users. Are there
templates available that solve an analytics challenge?
Engaging webcasts with highly sought-after industry
experts? Can business solve a customer challenge orpain point via log in? For example, entice them to sign into register their products to help manage warranties. Or
provide new customers with targeted offers based on a
recent purchase and create targeted campaigns to win

new business with related products based on the stageof their journey. OpenText TeamSite can help build andmanage authenticated portals for customers to provide
even more value.
Choosing a platform that helps you make data-driven
decisions is the most important step forward. OpenText
Experience Platform will enable your brand to confidently
say goodbye to third-party cookies and unlock
customer data.

About OpenText
OpenText, The Information Company,
enables organizations to gain insightthrough market leading information
management solutions, on-premises orin the cloud. For more information about
OpenText (NASDAQ: OTEX, TSX: OTEX)
visit opentext.com.

opentext.com
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The demise of the third-party cookie and the rise of first-party data

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