After not one, but two delays, Google pivoted yet again in 2024 when it announced it would no longer deprecate third-party cookies in Chrome. But Google’s new plans, which involve providing Chrome users with an “informed choice” experience around cookie-based tracking, don’t actually change much for advertisers: Cookie loss will remain the effective result.
This, along with the signal loss advertisers have grappled with in recent years—thanks to factors including Apple’s App Transparency, increased consumer demand for data privacy, and the continuing wave of privacy-related regulation—make the situation an urgent one. Automotive advertisers, in particular, will need to act quickly: Having invested heavily in digital advertising for over a decade, they are especially reliant on the targeting and attribution capabilities that third-party cookies have historically provided.
To learn how automotive marketers should approach this shift and what strategies they should invest in to set themselves up for success in a privacy-first world, we spoke with Jim Zabel, Basis Technologies’ VP of Agency Development – Auto, and a 25-year auto marketing industry veteran. Read on for his insights on how auto advertisers can adapt to a privacy-first model.
Jim Zabel: The auto industry is in a particularly interesting position because of the degree to which they’ve invested in digital marketing over the past 15 years. Even small and mid-sized auto businesses were early adopters. As we move towards a privacy-first advertising model, the biggest question for brands and dealers is this: Can you accept the fact that cookie loss will lower the performance benchmarks you’re used to seeing? I think this is going to be a big challenge to overcome. Companies will need to redefine success, and that’s going to require a significant mindset shift.
To use a non-cookie-related example, sometimes we’ll see clients want to stop a display or video campaign because they’re not seeing the same metrics as search. But performance for those channels isn’t comparable: Search is a lower-funnel tactic where you can see the conversions roll in, and the higher-funnel brand awareness achieved via display or video isn’t trackable in the same way. But that doesn’t mean those tactics aren’t revenue-driving and critical to a well-rounded campaign.
Similarly, without third-party cookies, brands and dealers won’t have access to the same depth of performance metrics. However, that doesn’t mean that their tactics and strategies aren’t driving revenue. For agencies working with dealers and brands, educating clients early and often on this point will be especially important.
A lot of auto brands and dealers are likely to want to stick with the status quo and prioritize short-term success and the maintenance of previous benchmarks, even if that means embracing cookie-like solutions that don’t fully honor the spirit of what consumers are asking for. But the brands and dealers who embrace the shift towards privacy-first advertising, and find new ways to measure performance, will have the most success in the long run.
JZ: A handful of solutions come to mind here.
First, defining audience segments specific to the channels you’re advertising on is key. Advertisers need to really understand where their customers are consuming media, and media mix modelling can be helpful here to identify the highest value tactics in your campaigns. Automotive marketing teams should also up their investments in audience research and develop highly defined, channel-specific audience segments to enable their targeting. Of course, this goes along with investing in the collection, storage, and extension of first-party data—in a cookieless world, first-party data is king.
Contextual targeting will play a major role as well. Contextual allows advertisers to get very specific about who they’re serving ads to without directly relying upon third-party user data, thus respecting consumer privacy. Investing in partnerships with publishers who provide specific content and have a deep understanding of their consumers will be incredibly valuable to automotive dealers and brands.
Also, walled gardens have a big advantage because of all the first-party data they have access to. As we lose more and more signals, I think it’s very plausible that those walled gardens will use that advantage to oversell their value to advertisers. That’s not to say that advertisers shouldn’t take advantage of walled gardens—they’re a smart choice for enabling that targeting. Even more, the omnichannel nature of programmatic can help extend those investments, because advertisers can use data from those walled gardens to target other channels where targeting on its own is going to be a lot harder to do. At the same time, it’s important not to overinvest in walled gardens: For most marketing teams, your own first-party data should be the priority.
Leveraging a customer data platform (CDP) to organize and leverage that first-party data can also help advertisers on the attribution side, because CDPs allow advertisers to track a user across various touchpoints, and to see how each tactic contributes to the eventual conversion. Advertisers should also reprioritize brand lift studies and cookieless conversion attribution tools to assist on the attribution side.
JZ: Let’s start with dealerships as the first example. Dealerships are sitting on treasure troves of first-party data, and there’s a massive opportunity to harness that data for their own marketing. To do so, dealerships need to make sure they have data hygiene protocols in place to make sure their first-party data is valid and deduped. At the same time, as data modeling becomes more accessible, there’s a real potential for dealerships to coordinate targeting and digital media tactics with brands, and vice versa. Many dealer groups are adopting CDPs to increase their ability to organize their first-party data into relevant segments and use it for audience modeling as well. I’ve seen a lot more appetite to get those sophisticated capabilities in-house, and I think that’s a smart choice for dealers of any size.
Next, let’s explore the brand side of things. Overall, brands need to rethink their data strategies, both in terms of collecting and maximizing their own first-party data, and in terms of coordinating with dealers to make the most of the wealth of data they can offer. Getting proactive about gathering that data from dealerships and setting up systems that ensure that data is being shared in privacy-compliant ways is my biggest recommendation for advertisers working with brands.
As the digital advertising industry shifts to a privacy-first paradigm, automotive marketers are at a pivotal crossroads—pun very much intended. Brands and dealers can either cling to the old status quo, or they can overcome signal loss by prioritizing consumers’ demands and embracing data privacy, as well as the new benchmarks for success that come with it. Those who play the long game—identifying new ways to measure success and investing in audience research, first-party data, contextual targeting, privacy-compliant programmatic, and cookieless attribution tools—will have a competitive edge going into the privacy-first future.
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Mounting signal loss isn’t the only trend set to shape digital advertising in 2025: The shifting landscape of online search, the maturation of CTV advertising, evolving sentiments around AI, and the rise of commerce media will also change how brands engage with consumers, allocate budgets, and measure success. Check out Reality Check: The 2025 Advertising Trends Report to learn more.