As consumers, we may welcome Apple’s significant updates to its privacy policy, which limit the use of the Identifier for Advertisers (IDFA) and Google’s plan to phase out third-party cookies.

But how do these changes affect your marketing effort as a real estate agent?

Advertisers can no longer rely on third-party data alone to accurately target their ads. Here’s how to proactively address these updates to ensure the effectiveness of your marketing effort.

How Do Changes in Cookie and IDFA Policy Affect Real Estate Marketing?

First, what are third-party cookies and IDFA, and why should you care?

Third-party cookies are placed on a website by someone other than the site owner to collect user data for a third party. The information is often used for ad targeting on other online channels.

Safari already banned third-party cookies in 2018, and Firefox followed suit in 2019. But the most significant impact will come when Google, which owns 65.8% of the global browser market share, phases out third-party cookies. The move will change the landscape of behavioral ad targeting and retargeting in online advertising.

Meanwhile, Apple introduced App Tracking Transparency (ATT), which gives users more control over their privacy. An app will prompt them to opt-in before its IDFA can track their online activities.

So far, most users choose not to opt-in, making it much harder for advertisers to collect a meaningful amount of third-party data to inform decision-making and deliver the right ads to the right people at the right time.

If you have been using digital platforms that use third-party data to inform targeting, expect a decrease in advertising efficiency. You’ll also find it more challenging to track interactions and attribute conversions to ad exposure to understand the ROI of your strategy.

How Real Estate Businesses Can Survive the Cookie Apocalypse

Since the privacy changes only affect third-party cookies, you should focus on collecting and using first-party data. If you haven’t already, implement a lead generation and segmentation strategy to collect and organize prospects’ and clients’ email addresses so you can market to them directly.

You can also analyze your first-party data to identify clients with the highest lifetime value. Then, use this list to create lookalike audiences on channels such as Facebook to get in front of new potential clients who are most likely to convert.

Meanwhile, marketing platforms are taking action to mitigate the impact of the changes. For instance, many are improving their contextual advertising, which puts PPC ads on websites that rank for similar keywords, so advertisers become less dependent on IDFA.

Additionally, Facebook has switched from third-party to first-party cookies as the default option for its Meta Pixel so advertisers can keep tracking ad attributions regardless of which browsers visitors use.

Expect changes in your online advertising metrics. Keep an eye on your analytics and adjust your bidding and targeting strategy when necessary. Stay current with the latest changes and use the right marketing technologies to adapt to the transition.

Turning the Cookie Crisis into Opportunity

The shift from third-party data highlights what successful real estate agents know all along: We must own our client relationships. Invest in building trust with your audience across multiple touchpoints and gather first-party data to effectively target your ads, understand your audience, and reach the right people at the right time.