Measuring and Driving Digital Marketing Effectiveness

The effectiveness of digital marketing is determined by how successful a company’s promotion of its products and services through digital media has been towards meeting its business goals. However, in recent years, there have been changes in two major areas – technical and regulatory – which have had an impact on the way marketers measure digital marketing effectiveness.

The digital ecosystem is undergoing a major transformation with the decline of third-party cookies and increasing regulation around what customer data can be used. One of the challenges that some marketers face is the need to rethink the way they measure the impact of their campaigns across different channels. While many data and analytic platforms and solutions are providing help to marketers in this area, it has never been more critical for marketers to ensure that they have the most appropriate approach in place for their business.

It is clear that marketers are recognising the need to focus on measurement, with a survey by Kantar showing that ‘improving marketing effectiveness’ is the top priority for marketers.^[1] With the continued pressure on budgets, many companies are also redirecting spend towards digital touchpoints, which traditionally have been easier to measure.

However, decreasing access to third-party cookies will have a significant impact on marketing measurement, as well as a company’s ability to target their digital advertising. A key concern for marketers is being left with a limited view of how each channel or campaign has performed. With multiple ad platforms and sources involved, it can be challenging to understand the effectiveness of integrated communications across digital channels and the role that each channel is playing in campaigns.

This guide explores the latest industry developments that are impacting how marketers are measuring their campaigns and targeting their advertising. It also sets out the options available for marketers to consider in order to successfully measure their digital marketing without having to rely on third-party cookies.

Summary of key points

• One of digital marketing’s greatest assets has been its perceived measurability. However, regulatory requirements such as GDPR and CCPA, along with technical changes such as the decline in access to third-party cookies, are impacting the ability of marketers to collect customer data and use this for tracking and targeting consumers.
• Some of the largest technology platforms including Apple and Mozilla have blocked third-party cookies at a browser level. While Google unexpectedly announced in July 2024 that it will no longer be phasing out third-party cookies, the company will instead be introducing an option that allows customers greater control over their use, which will impact their reliability as a data collection method.^[2] Apple and Google have also put further privacy features in place preventing the use of device IDs on mobile devices.
• The continued decline in access to third-party cookies has a direct impact on the way digital marketing is measured, creating challenges in the following areas:
  • Multi-touch attribution modelling, making it difficult to understand what a customer has seen or interacted with in the run up to a conversion.
  • Brand studies and controlled experiments, which depend on third-party cookies to create and compare distinct groups that have and have not seen the marketing.
  • Targeting consumers and measuring reach and frequency, as third-party cookies allow marketers to ensure a consumer does not see an ad multiple times.
• Despite this continuing decline, only 30% of marketers consider their organisation fully or mostly prepared for a cookieless environment, and only 8% say they are fully prepared. A large proportion of the open web already cannot be addressed by third-party cookies. Although Google is no longing phasing out third-party cookies, the ability for marketers to use them will continue to be restricted as customers are offered more choice around whether they want to be tracked. Marketers should continue to explore alternative solutions to put in place.
• There are various measurement options that do not rely on third-party cookies and are compliant with regulations and technical changes. Each of these will have a unique set of benefits and challenges, which marketers should evaluate against their objectives.
• The changes taking place are driving an even greater need for marketers to focus on collecting their own data sources, to support both understanding how their campaigns are performing, and to help reach audiences.
• Econometrics/market mix modelling is again growing in popularity, as one method that depends the least on data collected by third-party cookies. A number of interviewees also discussed adopting a blend of techniques in order to provide a holistic view of how a campaign has performed and what is driving incremental sales. This focuses on the concept of measurement triangulation by combining econometrics, digital attribution and experimentation.
• There is not one measurement approach that will work for everyone. Marketers should choose the best approach for their needs and objectives. It is important for companies to evaluate the success of any new measurement approach they adopt.
• The adoption of any new measurement approach requires the right foundations to be in place. This includes senior level support around building an effectiveness culture, adequate investment in measurement solutions and clear measures of success. A solid data foundation is required to ensure quality data is used for analysis and building models, and this should be supported with the right technology infrastructure and skills.
• It is recognised that creativity plays a key role in driving the effectiveness of a campaign, enhancing conversion rates by up to 50% and profitability by as much as four times. Having a focus on this at the outset can help companies drive more effective campaigns. AI and GenAI can help companies test and optimise their campaigns.
• The ability to target and retarget customers will be affected as access to third-party cookies continues to decline, meaning companies need to explore alternative ways to reach their audiences. This is placing greater emphasis on the need for marketers to focus on collecting their own first-and zero-party data, as well as to explore ways to work with secondary partners. Contextual and interest-based targeting, along with lookalike audiences, are all being considered by companies seeking alternative ways to reach audiences.
• To ensure accurate measurement and drive digital marketing effectiveness, companies should keep up to date with the changes taking place and evaluate the impact of these on an ongoing basis.