Once again, Google has postponed the removal of third-party cookies from its Chrome browser, a move not entirely unexpected by the AdTech industry yet critical for advertisers, particularly in the auto sector.

The tech giant cited "regulatory hang-ups and insufficient industry readiness" for this delay. Initially planned for early 2020, the deprecation of third-party cookies has been pushed back multiple times, now extending to early 2025. This provides a golden window for auto dealerships to refine their digital marketing strategies.

What This Means for Auto Dealerships

The extension offers auto dealers additional time to leverage third-party cookies for targeted advertising. This is a crucial period to collect valuable customer data and refine audience targeting techniques, ensuring that marketing dollars are spent more effectively. While Big Time Advertising had transitioned and was fully prepared for our dealers to continue receiving strong ROI for their ad spend, we are relieved that some of the benefits of cookies will remain longer.

How Dealerships Can Maximize This Extension

1. Enhanced Targeting: Continue using cookies to gather insights on potential customers' browsing habits and preferences. This data is invaluable for creating personalized marketing campaigns that speak directly to the interests of consumers.

For example, a dealership can analyze the data collected via cookies to identify customers who have shown interest in SUVs over the last six months. Using this information, the dealership can tailor their display ads to feature their latest SUV models, promotions, or exclusive SUV-focused events, directly targeting individuals more likely to be interested in this vehicle type.

2. A/B Testing: Use this period to experiment with different advertising messages and strategies. With third-party cookies still in play, dealers can see which tactics drive the most traffic and lead to actual sales, optimizing their approach in real time.

Utilize this time to test different ad creatives and formats. For instance, we have used one dealer group to produce an ad with a strong call-to-action, like a time-sensitive discount. In contrast, with another dealer, we launched a more informational ad focusing on vehicle features and benefits. By comparing which strategy drives more showroom visits or inquiries, we can help our dealers more accurately decide where to invest their ad budgets.

3. Prepare for a Cookie-less Future: While taking advantage of the delay, it's also crucial for dealerships to prepare for the eventual phasing out of cookies. Test alternative data collection methods like contextual advertising or direct customer relationships through loyalty programs.

Begin adopting new strategies, such as contextual advertising, which targets ads based on the content of the web page rather than user behavior. For example, a dealership might place ads for fuel-economic SUVs on environmental blogs or eco-friendly news sections. Additionally, developing a robust customer relationship management (CRM) system will help maintain direct contact with customers through newsletters, personalized offers, and loyalty rewards without relying on third-party data.

4. Collaborate and Innovate: Engage with tech providers and marketing experts to explore new tools and technologies to replace cookies. The future of digital advertising in the auto industry will rely heavily on these innovations.

Partner with tech-driven advertising firms like Big Time Advertising that are developing cookie alternatives. For example, participate in pilot programs that use machine learning to predict customer preferences based on limited data inputs. This proactive approach prepares a dealership for future advertising norms and places them ahead of the curve in adopting cutting-edge technologies.

Google's delay is a reprieve but not a permanent solution. Auto dealerships must use this time wisely, maximizing the effectiveness of their current strategies while planning for a future where cookies are no longer a tool in their digital advertising arsenal. The aim is to survive in a post-cookie world and thrive through innovation and adaptability. Contact Big Time Advertising to ask how we are already transitioning and/or how we can help your dealership start your transition.

-by Terry MacCauley, CEO

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