Cookies crumble as brands turn to first-party data

For years, brands built their marketing strategies on third-party data, cookies, audience profiles, and purchased datasets that promised insights into customer behaviour. This information helped advertisers reach audiences at scale, fuel remarketing campaigns, and measure performance.

Yet, the environment in which this data thrived has changed dramatically. Regulatory frameworks such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States have tightened rules around how personal data is collected, stored, and used.

Simultaneously, tech leaders like Apple have implemented privacy-focused updates, while Google has announced the phase-out of third-party cookies by 2025.

The result is clear. Marketers can no longer depend on rented audience data from unknown or opaque sources. We have entered the age of data independence, where brands rely primarily on first-party data collected directly from their customers.

This shift is not merely about meeting compliance standards. It represents a profound transformation in how brands build relationships, drive loyalty, and sustain competitive advantage in a privacy-first world.

The decline of third-party data

The weaknesses of third-party data have been evident for years. While convenient, such data often suffers from poor quality.

Since it is aggregated from multiple sources and sold to many buyers, a lot of it can be outdated, incomplete, or inaccurate. Marketers relying heavily on third-party insights run the risk of basing campaigns on flawed assumptions.

Another limitation is the lack of transparency. Consumers often have no idea how their personal information ended up in a brand’s database, which can create distrust. As awareness of digital privacy grows, so does scepticism toward brands that appear to collect or use data without consent.

The death knell for third-party data has been sounded by policy changes and technological evolution. Apple’s iOS updates now allow users to opt out of app tracking, dramatically reducing available audience data for advertisers.

Google’s upcoming cookie phase-out will effectively dismantle one of the most relied-upon tracking mechanisms on the web. In this new reality, brands must take ownership of their customer intelligence rather than depending on intermediaries.

Why first-party data is different

First-party data is information a brand gathers directly from its customers through touchpoints such as website visits, app usage, purchase history, loyalty programs, email interactions, and surveys. Because it originates from the brand’s own ecosystem, it is inherently more reliable, accurate, and relevant to that brand’s objectives.

The benefits are numerous. First-party data empowers brands to personalise messaging at an individual level, leading to higher engagement and conversion rates.

It fosters trust, as customers understand they are sharing their information voluntarily in exchange for value. It eliminates recurring costs associated with buying audience lists from third parties. And, perhaps most importantly, it creates a unique competitive moat, competitors cannot simply purchase the same dataset.

The privacy-value exchange in action

The foundation of successful first-party data strategies is the privacy-value exchange. This principle is simple: customers are willing to share data when they perceive they are receiving something of real value in return.

Consider ‘Starbucks Rewards’, where customers share purchase and preference information in exchange for free drinks, targeted promotions, and early access to seasonal offerings.

Similarly, Nike Membership collects fitness and shopping behavior data from users in return for exclusive product drops, personalised training content, and invitations to special events.

These programs not only collect valuable insights but also deepen customer loyalty through meaningful engagement. When brands frame data collection as part of a transparent, mutually beneficial relationship, it becomes a natural part of the customer experience rather than an invasive demand.

Building data independence

Transitioning to a first-party data-driven model requires strategic planning and execution. It begins with auditing existing data sources, evaluating CRM systems, analytics platforms, point-of-sale systems, and feedback channels to understand what data is already available and how it is used.

Next, brands should enhance their first-party data collection efforts. This can include deploying interactive content like quizzes and polls to capture preferences, developing loyalty programs that reward repeat engagement, and offering premium resources or exclusive content in exchange for sign-ups. Creating value at every touchpoint is essential to encouraging voluntary data sharing.

Investing in a Customer Data Platform (CDP) can centralise disparate data points into unified customer profiles, enabling advanced segmentation and personalised campaigns. Consent management tools should also be integrated, allowing users to control their data preferences while ensuring regulatory compliance.

Finally, internal training is critical. Teams must understand both the ethical and strategic aspects of handling customer information.

But ultimately, the true strength of first-party data lies in its application. Amazon leverages browsing and purchase history to recommend products in real time, creating a seamless shopping experience that feels intuitive and helpful.

Spotify uses listening data to curate personalised playlists. Its popular year-end ‘Wrapped’ summaries not only engage existing users but also drive organic sharing on social media.

These examples illustrate how first-party insights can fuel personalisation at scale, something generic, purchased datasets cannot achieve. By focusing on the customer as an individual, brands can deliver experiences that resonate emotionally, encouraging repeat engagement and advocacy.
The future belongs to owned audiences

The shift from reach to relationship is the defining characteristic of modern brand marketing. Instead of relying on third-party platforms to connect with audiences, brands are building owned channels such as email lists, loyalty program memberships, branded apps, and SMS subscriber bases. These channels provide direct communication without algorithmic interference, ensuring that messages are seen by the right people at the right time.

Owning your audience also brings cost efficiencies, reducing dependence on expensive paid media campaigns. More importantly, it strengthens resilience, no platform policy change or algorithm update can take away your customer base when it is built on direct relationships.

Just as financial independence provides stability in uncertain times, data independence empowers brands to weather changes in technology, regulation, and consumer behaviour. First-party data is not simply the future of marketing, it is the cornerstone of sustainable growth in a privacy-first world.

By investing in transparent, value-driven data collection and using it responsibly, brands can foster deeper trust, deliver more relevant experiences, and maintain a lasting competitive edge. The goal is not to collect more information but to collect better, more meaningful insights that bridge the gap between a brand’s promise and the customer’s lived experience. Those who embrace this shift now will be the ones defining the marketing playbook of tomorrow.

- Divanshi Gupta, founder and director, The Marcom Avenue