The cookieless future of advertising is fast approaching as new privacy regulations, and the growing use of browser privacy features are making it increasingly difficult for businesses to track and target users with online ads. This shift presents challenges and opportunities for businesses as they must adapt their advertising strategies to this new environment. Being a performance-based advertising network, AdMedia has kept a keen eye on all the developments relating to this shift. Read on to learn how to adapt your business to the coming times.
What are cookies? What do they do?
Cookies are brief text messages that a website you visit sends to your browser. They assist the website in saving information about your visit, which can make it simpler for you to return to the site and increase its usefulness. There are different types of cookies. Some of these are:
- First-Party Cookies
- Session Cookies
- Third-Party Cookies
- Secure Cookies
- HttpOnly Cookies
- SameSite Cookies
- Targeting Cookies
- Functional Cookies
Why is Google banning cookies, and what does that mean for the future?
With its declaration that it will stop allowing third-party cookies in its Chrome browser, Google will join Mozilla, Apple, and Microsoft. This action will alter how marketers interact with their target audiences. It helps in digital privacy and data protection and begins a cookie-less era.
The search engine giant wanted to give more time to marketers. During this time, they could try out newer targeted advertising technology that is less intrusive. Google is working towards a cookie-less future so that its users’ personal information may remain secure online.
The extensive analysis of Google’s users’ cookie usage and rising customer unhappiness with cookies, privacy, and data usage may have impacted the company’s decision-making. It’s also possible that the IDPC’s inquiry into Google’s internet advertising strategy had some bearing. For detailed information on this, visit AdMedia.com.
What are the implications of a cookieless future on your business?
- Tracking website usage and user behavior
Cookies have traditionally been used to track how users interact with websites, including what pages they visit, how long they stay on a page, and what actions they take. Websites will find it more challenging to track and analyze user behavior without cookies.
- Personalizing user experiences
Cookies have also been used to store information about users’ preferences and histories, which can be used to personalize their experiences on a website. Without cookies, websites may have difficulty providing personalized recommendations or customized content for users.
- Serving targeted advertisements
- Maintaining user session states
Cookies have often been used to keep track of user session states, such as whether a user is logged in to an account or has items in their shopping cart. With cookies, it might be easier for websites to maintain these session states.
- Impact on revenue
What are the Benefits for Marketers in a Cookieless World?
In a cookieless world, marketers will need to rely more on first-party data and less on third-party cookies to personalize and target their advertising efforts. This shift may require marketers to find new ways to collect and use data, but it also offers several potential benefits:
- Improved user privacy
Without third-party cookies, user data is less likely to be shared or sold without their knowledge or consent, which may increase customer trust and loyalty.
- Increased accuracy
First-party data is generally more accurate and up-to-date than third-party data, which can improve the effectiveness of personalization and targeting efforts.
- Enhanced customer experience
Using first-party data, marketers can create more relevant and personalized customer experiences, improving the overall customer experience and driving engagement.
- Greater control
Marketers will have more control over their data in a cookieless world, as they can collect and use data directly from their websites and apps rather than relying on third-party sources.
- Broader reach
Without the constraints of third-party cookies, marketers will have more opportunities to reach and engage customers across various channels, including email, push notifications, and more.
How to reimagine your digital marketing strategy in a cookie-less world
As the world moves into a cookie-less era, digital marketers need to use alternate methods to optimize their campaigns. Marketers can better understand user behavior and preferences by implementing new strategies and leveraging data-driven tools.
- Identify and prioritize first-party data.
In a cookie-less world, first-party data – such as information gathered directly from a company’s website or app – will become increasingly important. Companies should focus on collecting and leveraging this data to better understand and target their customers.
- Use contextual advertising
Instead of relying on cookies to track users’ browsing histories and interests, companies can use contextual targeting to deliver relevant ads based on the web page’s content or app a user is viewing.
- Invest in email marketing
Email marketing can effectively reach and engage with customers in a cookie-less world, as it does not rely on cookies or browser tracking. Companies can use email marketing to promote their products and services and to gather valuable data about their customers’ interests and preferences. This is one of the most important cookieless marketing strategies.
- Explore alternative tracking technologies
While cookies may no longer be an option, companies can use other tracking technologies to gather customer data. For example, companies can use device fingerprinting or browser fingerprinting to track users’ device and browser characteristics.
- Focus on building customer relationships
In a cookie-less world, it will be more critical for companies to build strong customer relationships based on trust and value. This can be achieved through personalized and engaging content and offering excellent customer service and support.
- Emphasize the value of data privacy
With the increased focus on data privacy in a cookie-less world, it will be necessary for companies to be transparent about their data collection and use practices and to provide customers with clear and easy-to-understand options for controlling their data.
- Review Budget
There is no simple way to put it, but the ecology of digital advertising may undergo seismic changes that raise new expenses. Advertisers that attempt to maintain flat budgets or who fail to anticipate the significant changes that will occur when the cookies ultimately crumble may not have the resources necessary to adapt.
11 alternatives to 3rd party cookies
The best alternatives for 3rd party cookies you can explore are:
- Identity solutions
Personal information from website visitors is gathered and provided to an ID provider. The user’s personal information is then encrypted or hashed to preserve their privacy before being matched to an existing ID or create a new ID.
- Google’s Privacy Sandbox
Google’s Privacy Sandbox calls for a set of application programming interfaces to replace third-party cookies (APIs). This includes Topics, Dovekey, Turtledove, FLEDGE, FLoC, and SPARROW.
- Publisher-Provided Identifiers (PPIDs)
A publisher will provide each user with a unique identifier known as a PPID. Publishers often link a PPID to a user who is logged in. Therefore, publishers must think about getting consumers to log in if they want to employ PPIDs.
- Contextual advertising
It can utilize information sent by the publisher, such as the device and browsing time, not personal information. Machine learning is used by advertisers to forecast which pages to target and at what time.
- Data Pools or Data Clean Rooms
Large volumes of user data can be kept in data pools or data clean rooms. To guarantee that user privacy is respected, these organizations are separate from publishers and advertising. Publishers can add or combine first-party data on their own.
- User Identity Graphs
The key benefit of user identification graphs is that they make cross-platform and cross-channel tracking and targeting possible.
- User-granted permissions
Some websites and apps ask users for permission to track their behavior or access their data. While this method is more transparent and can be more privacy-friendly, it relies on users being aware of and understanding the permissions they are granting.
- First-party cookies
These are cookies set by the website a user is visiting. They can be used for a variety of purposes, including tracking user behavior on the website, personalizing the user experience, and remembering user preferences.
- Browser fingerprinting
This technique uses information about a user’s browser and device, such as the type of device, screen size, and installed fonts, to create a unique identifier for the user. This identifier can be used to track users across different websites.
- Device fingerprinting
Similar to browser fingerprinting, this technique uses information about a user’s device, such as the device’s IP address and hardware components, to create a unique identifier for the user.
- Server-side tracking
Instead of using tracking technology on the user’s device, this technique uses tracking code on the server side to track user behavior. This can include tracking user interactions with website content, as well as user demographics and interests.
To welcome this change with optimism and preparation, it’s important to focus on building a strong first-party data strategy and developing strong relationships with customers. By being proactive and staying up-to-date on industry trends and best practices, businesses can navigate this transition and continue to thrive in the cookieless future. Visit AdMedia.com to learn more about how you can best adapt your business to a cookieless future.