97% of executives admit they are ill-prepared for Google phasing out third-party cookies; 86% believe their personalization capabilities are inadequate
NEW YORK, July 10, 2024 /PRNewswire/ — At a pivotal moment for digital marketing, with Google announcing plans to eliminate cookies, a striking 97% of executives report they feel unprepared for this foundational shift in how companies will learn about consumers’ preferences and behavior. And with over 75% of consumers more likely to consider buying products from brands that personalize, 86% of executives believe their ability to run personalized marketing campaigns is inadequate. That data comes from a recent survey conducted by Optimizely, the leading digital experience platform (DXP) provider.
97% of executives admit they are ill-prepared for Google phasing out third-party cookies.
This research, which includes respondents from 1,000 Marketing, E-Commerce and IT executives in six markets – the US, UK, Germany, Sweden, Australia/New Zealand and Singapore, comes at a pivotal moment for marketers – as Google phases out cookies, AI emerges and regulatory threats grow.
“This report makes clear that brands are ill-prepared to navigate the emerging, generational shifts in the ways they can reach customers,” said Shafqat Islam, CMO at Optimizely. “While executives know that investing in personalization and experimentation are key to survive in the new reality of digital experiences, they too often feel they don’t have a streamlined, intuitive toolkit to implement effective campaigns at scale. Accessing marketing solutions that create personalized digital platforms without third-party data will be key to thriving in the coming decades.”
Executives broadly agree that personalization is key to an effective marketing strategy – 62% of respondents increased their personalization budget since last year. They also recognize the specific benefits of experimentation within these efforts, including its ability to identify mistakes, (40%), allow for data-driven decisions (40%), test strategies before they’re employed (39%), personalize customer experiences (39%), and discover which personalization strategies work (39%).
However, companies are still widely struggling to implement an effective personalization strategy:
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Executives implementing real-time personalization experiences face numerous challenges, including a lack of focused analytics (43%), difficulty scaling personalization programs (40%), and difficulty activating experiences in real-time (39%).
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While 64% have begun implementing real-time personalization strategies, just 9% have reached full implementation.
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Many also face process-oriented obstacles: over a third (36%) cite disjointed workflows as a top challenge.
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Just 26% of executives report having a unified definition of personalization throughout their organization.
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While virtually all executives surveyed with a personalization strategy are measuring their ROI, no single metric is used by even half of respondents, suggesting a broad uncertainty on how to understand and track success for these efforts.
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43% fear an ineffective personalization campaign will result in reduced future marketing budgets.
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Google’s phaseout will leave companies hard-pressed for the data they rely on. To succeed in the upcoming era digital marketing, brands will need to stop relying on third-party data, and instead focus on creative ways to develop campaigns based on data they can discern from consumers directly.
To read the full report and learn how Optimizely can help marketing teams create effective, personalized campaigns, visit https://www.optimizely.com/how-digital-leaders-are-thinking-about-personalization/.
Methodological Notes
The Optimizely Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 Marketing, Ecommerce and IT Executives, with a minimum seniority of Director, at companies with a minimum of 100 employees, in 6 markets: US, UK, Germany, Sweden, Australia/NZ, and Singapore, between May 2nd and May 14th, 2024, using an email invitation and an online survey.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points in the global sample, 4.4 percentage points in the US, and 9.8 percentage points in the remaining markets from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
About Optimizely
At Optimizely, we’re on a mission to help people unlock their digital potential. We do that by reinventing how marketing and product teams work to create and optimize digital experiences across all channels. With Optimizely One, our industry-first operating system for marketers, we offer teams flexibility and choice to build their stack their way with our fully SaaS, fully decoupled, and highly composable solution. We help companies around the world orchestrate their entire content lifecycle, monetize every digital experience and experiment across all customer touchpoints – all through Optimizely One, the leading digital experience platform that powers every phase of the marketing lifecycle through a single, AI-accelerated workflow.
Optimizely has nearly 1500 employees across our 21 global offices and has 700+ partners. We are proud to help more than 10,000 businesses, including H&M, PayPal, Zoom, and Toyota, enrich their customer lifetime value, increase revenue and grow their brands. At Optimizely, we live each day with a simple philosophy: large enough to serve, small enough to care. Learn more at optimizely.com.
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SOURCE Optimizely
