Cookies Unplugged: Navigating the New Landscape of Digital Advertising
What have I been up to? Thinking about Cookies and Programmatic of course ????
The advertising world is in the midst of a pretty massive shift as we say goodbye to the era of third-party cookies. While targeting continues to be tough to approach holistically, advertisers, agencies, and tech vendors need to be ready to take on yet another challenge – as if there weren’t enough already ????) ???? I’ll dive into the challenges and opportunities presented by ad targeting in this post-cookie era. ????
???? What’s happening to this script loved by so many?
It’s simple, the plan (for now) is that third party cookies are crumbling next year! Why does it matter?
For decades, third-party cookies have been an essential ingredient in the digital advertising ecosystem, enabling marketers to track user behavior and target ads with remarkable precision. However, concerns about privacy and data protection have led to their ultimate demise. Not to mention, many users view them as intrusive.
Major browsers like Google Chrome are phasing out support for third-party cookies, and legislation like GDPR and CCPA have underscored the need for a more privacy-centric approach. One good thing for Google is that they own the tech, and may likely be able to successfully advertise within their ecosystem (walls), more likely than independent ad tech.
???? Challenges once we lose these cookies:
- Loss of Precision: Without third-party cookies, advertisers will face challenges in tracking and targeting users as accurately as before. This loss of granularity can impact campaign performance.
- Privacy Concerns: Consumers are very conscious of their online privacy now more than ever. Advertisers must navigate this landscape carefully, respecting user preferences while still delivering effective advertising.
- Walled Gardens will likely continue to benefit: Tech giants like Google and Facebook have their ecosystems and user data, creating a potential duopoly in the advertising space. Smaller players may find it challenging to compete.
- Data Dependency: Advertisers may become overly reliant on first-party data, which can limit the overall scale of their campaigns.
???? There are, however, some opportunities!
- Contextual Targeting: Contextual advertising, has continued to come up more often in industry conversations again. A move away from third party cookies can bring advertising back to its roots and perfect a better way to target based on relevant content.
- First-Party Data: Although it can hinder scale, First Party Data is also an opportunity, and can help keep media budgets more focused. Advertisers having the ability to use their own data against media buys will be key in almost, if not all cookieless strategies. In fact it can even provide more precise targeting than cookies alone.
- Privacy-First Approaches: Transparency is key, this goes for all advertising spaces, both Programmatically and not. Embracing privacy-first practices will give users more control over their data and respecting their choices.
- AI and Machine Learning: AI? Trust me, it’s not just a buzz word ????One of the use cases I’ve seen it being used for is its amazing ability to analyze data patterns and make informed targeting decisions, all in real-time of course.
???? Embracing the Future:
The post-cookie era is not a doomsday scenario; It brings an opportunity for innovation and adaptation (we’ve innovated before and we will do it again).
As for marketers and advertisers, they will have the chance to rebuild trust with audiences, foster creativity, and develop new, privacy-conscious approaches to targeting.
Industry-wide collaboration on privacy standards and solutions continues to be essential. Advertisers, tech platforms, and regulators continue to work with folks like the IAB Tech Lab to find a standardized approach. For now, technology providers have room to create their own unique solutions and separate themselves from the pack. I know I have found a lot of value in collaborating with others to come to a unified solution – only time will tell who emerges as the winners in this race. Don’t sleep on your chance to excel in this new era of our industry!
Ankush Kirpalani is Vice President of Global Partnerships at VRTCAL.