32% of firms in Ireland say they are “not prepared at all” for a Cookie-less future

32% of firms in Ireland say they are “not prepared at all” for a future which will preclude them from using 3rd party cookies. In March of 2021, Google Chrome, the world’s biggest browser, announced the phasing out of third-party cookies, which are a key component of online advertising, and enable a company to effectively target particular audiences for their products or services. By late 2023, third-party cookies will no longer be supported on the search engine.

The Compliance Institute, who rolled out a survey of 144 compliance professionals within Irish organisations nationwide, say the results speak to a severe lack of communication between the two departments that will play the most crucial roles in ensuring that businesses successfully adapt to the new changes, namely the compliance and marketing departments. The lack of collaboration between the two could very well prevent the organisation from fulling its regulatory duties and meeting the requirement of data protection legislation.

Further highlights from the Compliance Institute Cookie Survey reveal:

  • 6 in 10 say compliance and data protection teams within their organisation do not have a clear understanding of how 3rd party cookies are used within the organisation
  • 46% say the compliance function within their organisation has little to no involvement in aspects of marketing such as first & third-party cookies and data capture

Speaking of the findings, Michael Kavanagh, CEO of Compliance Institute ,

The findings highlight a sharp knowledge gap that exists within compliance and data protection departments of Irish organisations, and it seems that this is largely due to a communication blockage with the people in the business that are at the forefront of this type of data collection and utilisation i.e. those whose expertise and responsibility lies in marketing.

Major changes are coming down the tracks and there will be no getting around this. All organisations will be forced to change their practices, and find other ways to collect information needed to research the market and target key audiences while keeping within the boundaries of data protection laws.

But it is very hard to see how the GDPR requirement for data protection by design and default is being effectively implemented if nearly 6 in 10 respondents have little or no involvement in first- and third-party data strategies and data capture, and 32% have no involvement at all in the development of alternative strategies.

There is no way that these organisations can effectively prepare for the changes, unless they change their strategy and allow for and enable much clearer lines of communication.

Marketers need to do more to engage with their compliance colleagues. And compliance teams need to take the time to get to understand, what is, a fundamental part of their business, and one with a high potential risk for GDPR breaches”.

Almost 9 in 10 Irish Organisations Will Be Impacted by Google’s Cookie Changes

Marketing departments of organisations throughout Ireland are undergoing a fundamental shift in the way they use and capture data as a result of changes to how businesses can use 3rd party cookies. However, a survey from Compliance Institute of 144 compliance professionals within Irish organisations throughout the country, has found that although the oncoming changes from Google around the use of 3rd party cookie data will have implications for almost 9 in 10 businesses, there’s a widespread lack of awareness, with 74% of respondents say there’s little to no awareness of the issue within their organisation.

The survey also looked at whether or not marketing and compliance teams were working together to prepare and develop new data collections strategies in advance of these changes – more than half said there was no coloration at all, while a further 14% say they would like to be working more closely with the marketing department.

Michael Kavanagh, CEO of Compliance Institute (formerly Association of Compliance Officers in Ireland (ACOI), said the results point to a communication issue within Irish organisations that requires attention.

“In 2023, Google Chrome will block third party cookies and ca. 65% of the market globally, it will force marketers to consider other options. However, these findings point towards a lack of awareness, a lack of preparation, and possibly a lack of collaboration. All of which are concerning from a compliance perspective.

What this tells us is that organisations need to look at the area of data from a more holistic viewpoint. This is not just the domain of the marketers within the business – anything that relates to the collection or capture of data contains a GDPR element, which of course, is led, in the main, by compliance professionals.

It wasn’t all that long ago that the Data Protection Commission (DPC) issued a guidance note titled “Cookies and other tracking technologies”, which outlined what the DPC  considers best practice, and intended to ensure greater levels of adherence across Irish organisations. At the time, Irish organisations were required to review their cookie policies to ensure they met the standards as set by the EU.  It was at that stage collaboration between marketing and compliance teams was necessary to ensure that the organisation had all its t’s crossed and I’s dotted.

We need the same type of collaboration now”.

The Compliance Institute survey asked:

How much awareness is there in your organisation around the forthcoming changes from Google, and are actions being taken as a result?

 

                                                                                                                                                           %

  • A lot of awareness and we have made/ are making changes                                        8
  • A lot of awareness but we have yet to make any changes                                              5
  • A little awareness – some actions taken/ planned                                                         13
  • A little awareness – no actions taken/ planned                                                               24
  • No awareness that I know of                                                                                               37
  • It doesn’t apply to us                                                                                                             13

How closely are you working with your marketing department in the development of alternative data strategies to replace third party cookies?                                                                         

 

                                                                                                                                                         %

  • Very closely                                                                                                                           18
  • We are working with them a little                                                                                      17
  • Not at all                                                                                                                                 51
  • We would like to be working more closely with the market department on this       14

Mr. Kavanagh concluded,

It is evident from our survey that greater cross collaboration and communication is needed marketers need to do more to engage with their compliance colleagues and vice versa.”