The Great Cookie Conundrum just won’t crumble. And that’s a good thing, because it hasn’t gone far enough yet.
Marketers need to understand that this isn’t about cookie deletion or even data collection -- this is about relevance and control for consumers. And once we realize that and deliver upon its promise, then relevance will lead to an even greater amount of data.
Jupiter opened the proverbial jar a number of weeks ago with a report that found almost 40 percent of all users were regularly deleting their cookies. In the following weeks, cookie proponents were calmed by a counter-cookie study that found people likely exaggerated their behavior with regard to cookie deletion. But, just as many were about to exhale, Atlas quietly corrected its original estimate of lower deletion numbers to reflect higher deletion activity. Suddenly the merry-go-round was spinning once more.
Early reaction and efforts by the online industry to the cookie debate have been positive, yet somewhat predictable. Staunch defenders of the cookie have come together in a coalition of agencies and advertisers called Safecount.org -- a kind of non-profit public relations firm for the abused and battered (bad pun) technology -- to provide education about cookies in the hopes that it will prevent further legislation, anti-spyware programs and deletion.
While I agree that dialogue is good, I don’t think a coalition or forum will move the needle fast enough or far enough for this issue to suit the consumer. We must stop spinning in ever increasing circles of studies by calling for a halt to the madness. Let’s address the REAL problem -- not the symptoms. Cookies as they exist must evolve.
Consider the following consumer comment that appeared in a recent online publication:
Todd Butler asked, "Why don’t websites ask permission before putting cookies on my computer? Why don’t our computers have a secure folder for approved cookies with automatic deletion of all others? Why is the online media world unwilling to tell me what their cookie is for, what value it has for me and how it improves my life? After all, it is MY COMPUTER, not their playground!"
This reaction isn’t unique among consumers. In fact, when you consider that this is simply one of many similar postings, it becomes obvious that many consumers feel just like Butler. The truth is that our problem is far greater than just an accurate report on behavior; it’s that consumers really don’t understand what cookies are, how to use them or why they should keep them. That is why I challenge the industry to push the discussion of the Great Cookie Conundrum even further. Let’s answer Butler’s question not with platitudes and band-aid solutions, but with a real, internal examination that might lead us down a new path.
In a recent Merrill Lynch analyst report on Advertising/Marketing & Internet Advertising, analyst Laura Rich Fine called specific attention to the comments of MSN Chief Marketing Officer Joanne Bradford. Bradford states that the next challenge for advertisers will be figuring out how to be “invited by users.” She goes on to state that as personalization with RSS, on-demand, blogs and social communities grow significantly; younger generations can choose what they wish to consume.
It’s no secret that advertising has always been more of a push than a pull model. And if recent statistics showing an even greater than expected shift in media spending from traditional to online are accurate, then the opportunity to make a major change in the push versus pull model is at hand. That means for those of us in the business of advertising, it’s ours to lose.
Truthfully, it’s about time that marketers finally understand what consumers like Butler already know -- it’s about control. Consumers have it in other areas of their lives, and they can sense that it’s within their grasp here. So instead of being reactive and trying to protect our diminishing domain, why not work with consumers to make the entire process better and more beneficial for everyone?
To quote Jim Stengel, global marketing officer for P&G; “It’s not about media … it’s about a shift in control (to consumers) … everything has changed.”
I understand that this is a slippery and scary slope for most marketers to navigate. After all, if you give consumers the ability to opt-out completely, they will, right? Maybe not. We must adjust our assumptions about consumers and therefore our ability to generate models that serve their needs rather than trick, trap or track them until they buy -- a new model based on what they want, a model that acknowledges they have the control.
And if, as Mary Meeker says, the internet is back, then we’re obligated to get it right this time. Let’s not just wash cookies down with a glass of warm milk. Let’s consider changing the model, with the consumer in mind. A recent Economist article about the internet and consumer control says it best:
“As media become increasingly interactive, consumers will be able to exercise ever more choice over which of them they consume, how, when and where. Getting advertising will be optional -- so it had better be good, useful and relevant to their lives.”
Cookies can make that happen. We just need to find the right recipe for consumers.
Additional resources:
The Media Maze: The Cookie Crumbles
Friday Fodder: the Week in Review
Rich Person is chairman and CEO of Poindexter Systems. Founded in 1999, Poindexter Systems is the leading provider of real-time optimization technology that helps marketers dramatically improve the profitability of their online marketing investments. Its patent-pending flagship product, Poindexter POE, uses sophisticated statistical modeling technology to leverage traditional direct marketing techniques online.
