Third-party cookies

Advertisers Embrace Programmatic Advertising As Cookies Decline

The use of unreliable and mostly independent third-party cookies is coming to an end. What the industry does next is currently up for discussion. While some solutions will look at the context of a webpage, others will concentrate on interest, and some will try to develop a widely used but privacy-first ID system. Over the coming year, the majority of advertisers and agencies want to increase their programmatic spending while third-party cookies continue to be phased out. About 58% of advertisers are unprepared to operate in the cookie-less world, according to Warc’s research. The cause is cited as a lack of practical knowledge of how their work is still impacted by evolving privacy laws. Additionally, the report noted that more than 60% of marketers have reservations about reaching audiences without the use of third-party cookies.

Cookies Phase Out Story Until Now

Google stated that it would stop enabling third-party cookies in the Chrome browser in 2021. Other browsers rapidly followed suit after this. The advertising industry was rocked by this news, leaving marketers unsure of what to do next. However, companies are recognizing the chances to monetize the advertising industry through their ecosystems, despite any potential downsides. Advertisers realize the advantages of properly framing their advertising and connecting with people by meeting their requirements. Additionally, they can guarantee user data security and foster transparency. By enabling end users to place more trust in companies, the improved security has enabled advertisers to forge closer connections with consumers.

Around 95% of the web is expected to anonymize with the phase-out of third-party cookies. It has greatly increased prospects for new ecosystems to arise by leaving a vast hole on the internet. However, due to several unanticipated circumstances, the phase-out was extended until 2023. The UK and the EEA’s revised privacy laws, Google’s testing of the Federal Learning of Cohorts (FLoC) and Privacy Sandbox, and a high level of user demand for enhanced transparency are the causes.

Google is now planning to roll out this modification gradually, starting with 1% of Chrome users in early 2024. Developers will be able to evaluate their preparation for the wider shift during the initial phase, which will act as a practical test. A considerable change in advertising tactics is necessary as a result of the deprecation of third-party cookies. Adversaries need to investigate alternatives to specific user tracking for targeting and measurement. It is advised to negotiate the change by utilizing first-party data, investing in contextual targeting, and working with business partners.

Read More: End Of Third-Party Cookies, What Is There For Marketers: Takeaway!

The Current State of the Programmatic Landscape

Over the previous few years, programmatic ad spending has doubled due to exponential growth. Programmatic advertising has become a major role in the dynamic world of ad technology. Since its introduction, it has been significantly advancing the advertising sector. The buying and selling of ad inventory has been streamlined and made more effective than ever thanks to its automation features. In 2023, as we reach the halfway point, a few things have changed. Advertisers should keep a close eye on a number of programmatic advertising trends to maintain an edge over rivals.

Examining Possible Replacements for Third-Party Cookies

Cookies are being resisted due to privacy issues. Publishing companies must therefore prioritize identifying options for the third party. However, research from Adobe claims that 74% of users still rely on third-party cookies, and this is worrying. However, according to a different survey, 41% of marketers still think that removing third-party cookies will be one of the most difficult tasks. Therefore, in order to prevent any interruptions to their advertising campaigns, marketers will need to find alternatives to third-party cookies.

Growth of DOOH

In the years following the pandemic, offline buying has increased. More and more individuals are going to physical stores to make purchases. The recent boom in programmatic advertising is unrestricted by cookie regulations. As a result, marketers ought to concentrate on billboard advertisements. People’s interactions with offline advertising are vastly improving. This includes interactive display ads, 3D billboards, and more. The amount spent on digital out-of-home (DOOH) advertising in the United States will increase by around 11.4 percent to almost 2.94 billion dollars by 2023, predicts Statista. This represents more than one-third of the yearly expected OOH ad spending in the US. For the first time ever, in 2023, DOOH ad expenditure will surpass the pre-pandemic spending recorded in 2019. Additional digital screens are appearing for advertisement across the nation. Programmatic strategy is well-positioned to secure a significant chunk of this spending in the upcoming years.

Building programmatic efficiency with AI and ML

The application of AI and ML is a further development in the field of programmatic advertising. Both advertisers and publishers can greatly profit from these technologies. With the help of AI, publishers can better understand their audience, increase user involvement through tailored recommendations, and automate the generation and optimization of content. This leads to scalable presentation and better comprehension. On the other side, AI and ML can quickly analyze vast amounts of data for advertisers. Campaign targeting and automation are now more successful than ever.

The growth of video advertisements.

The popularity of video commercials is predicted to skyrocket. According to Statista, expenditure on video advertising is anticipated to reach 176.6 billion dollars by the end of 2023, growing at a CAGR of 6.80%. The average ad expenditure per internet user in the market for video advertising is anticipated to be 33.13 in 2023. Additionally, connected TV spending is estimated to amount to $30 billion. Furthermore, with better-quality inventory and more straightforward measurement, programmatic video is becoming a more premium medium. Programmatic video is leading the way toward a more creative, targeted, and interactive advertising environment. In general, video advertising is growing rapidly in programmatic advertising.

Read More: And Google Does It Again,  Delays Phaseout of Third-Party Cookies

Programmatic advertising without third-party cookies

Programmatic advertising has historically used third-party cookies to target particular audiences. However, the ability of marketers to follow and target audiences on the web is declining due to the gradual decline of the third-party cookie and the adoption of new privacy rules. Programmatic ecosystem scaling has also resulted in the expansion of innovative channels, including connected TV, gaming, programmatic audio, retail, and digital out-of-house.

There is a rush to define what a cookie-less future might entail with third-party cookies on their way out. Programmatic advertising will change, but its status as a crucial tool for digital marketing will endure. In 2023, Statista expects that programmatic ad spending will surpass $550 billion globally. And as technology develops year after year, programmatic advertising remains an interesting field thanks to improved software and algorithms.

According to a report, Dentsu predicts 28% and 15.2% growth rates for retail media and CTV in 2023, respectively, in emerging digital sectors. Additionally, programmatic advertising will account for 71.4% of all digital spending, an increase of 14.4%. According to a different survey by IAB Europe, 74% of advertisers, 80% of agencies, and 68% of publishers anticipate that investments in programmatic trading would rise over the ensuing 12 months. In addition, CTV has become the main growth sector, with more than 50% of stakeholders linking it to the acceleration of programming growth over the coming year.

Controlled first-party cookies are prominent in programmatic advertising trends since Google still permits first-party data. It is fantastic for locating the correct audiences on the appropriate platform at the appropriate moment and for contextual advertising. From 2023 to 2035, contextual marketing is expected to grow by 18%. However, to maximize results and ROI, marketers are playing a smart game with the distribution of their ad spend budget. 

Read More: Relief To Advertisers As Google Postpones The Elimination Of Third-Party Cookies Till 2023.

Challenges facing post-third-party cookies arena

However, advertisers still experience difficulties. Lack of consistency is the biggest challenge brands face in managing media networks. They claimed there was annoyance with the quantity, caliber, and uniformity of data and reporting offered by each channel. This increased the brand teams’ efforts and made cross-platform comparisons challenging. The “walled-garden environment” that companies encounter when operating within the ecosystem presented advertisers with their second issue. They remain in the dark regarding their activations, which makes it difficult to maximize their deployment and return on investment. 44% of advertisers reported this problem.

Advertisers continue looking for alternatives to third-party tracking cookies, as cookies completely phase out starting in 2024. They are also investigating more contextual and interest-based targeting models. They include those based on images, audio, location, content sentiment, time, and weather. Additionally, they are working more closely with publishers, platforms, and tech suppliers to take advantage of shared data and insights as they push further to gather first- and second-party data to learn more about their customers. They have, however, also made several cautions about the expansion of programmatic channels.

The demise of third-party cookies marks a critical turning point for the industry. Advertisers are reacting to the novel situation. They now need to adopt cutting-edge tactics and technology to respect consumer tastes and confidentiality while retaining useful functionality. This will turn out to be the real test for them to tap into their creative side!

Read More: Google’s Phasing Out of Third-Party Cookies: A Paradigm Shift in Digital Advertising

Google’s Phasing Out of Third-Party Cookies: A Paradigm Shift in Digital Advertising

Google’s recent announcement of phasing out third-party cookies has sent ripples through the digital advertising industry. This move is part of the tech giant’s commitment to prioritize user privacy and reshape the way online advertising operates. In this article, we delve into the details of Google’s plan, its implications for advertisers, and the challenges and opportunities that lie ahead.

The Shift Towards Privacy-Conscious Advertising

Google’s Privacy Sandbox initiative aims to replace third-party cookies with a more privacy-conscious approach. Instead of individual user tracking, Privacy Sandbox proposes the concept of cohorts, grouping users based on similar browsing patterns and interests. By protecting user data and allowing individuals to manage their interests, Google seeks to strike a balance between privacy and effective advertising.

Phased Rollout and Testing

Google plans to gradually implement this change, beginning with 1% of Chrome users in early 2024. This initial phase serves as a real-world test, allowing developers to assess their readiness for the broader transition. The company also plans to make Privacy Sandbox’s relevance and measurement APIs available to all Chrome users in the Chrome 115 release, enabling developers to experiment and test these APIs with live traffic. Tech Crunch quoted Google’s Victor Wong, who leads product for Private Advertising Technology within Privacy Sandbox said, 

This plan was developed with close consultation and coordination with UK’s Competition and Markets Authority — the CMA. We consulted with them on this and we felt this is the best way to, jointly with the industry, actually test out the solution.

In Q4 [2023], we help coordinate some of the testing and make that easier. Q1 [2024], we deprecate for 1%, which then, for everyone in the industry, forces them to seriously start experimenting and testing.

Adapting Advertising Strategies

The deprecation of third-party cookies necessitates a significant shift in advertising strategies. Advertisers must explore alternative targeting and measurement methods that rely less on individual user tracking. Leveraging first-party data, investing in contextual targeting, and collaborating with industry partners are among the recommended approaches to navigate this transition successfully.

Challenges and Opportunities

The elimination of third-party cookies poses challenges in measuring conversions, personalizing ad experiences, and attributing campaign success. However, it also opens doors to innovative solutions, such as enhanced first-party data utilization, contextual advertising, and increased collaboration among advertisers, agencies, and technology providers. Advertisers have an opportunity to build stronger relationships with their target audiences while respecting their privacy.

Industry Response and Readiness

While Google’s move towards privacy-conscious advertising has received praise, it has also sparked discussions and concerns within the industry. Adtech developers are eager to test Privacy Sandbox APIs at scale, and some have already begun experimenting. However, other browser vendors are pursuing different approaches, adding complexity to the advertising ecosystem.

Preparing for the Future

Advertisers are advised to stay informed about the latest developments and guidelines associated with Privacy Sandbox. They should assess the compatibility of their current advertising tools and platforms, invest in building first-party data capabilities, and actively collaborate with industry stakeholders to shape the future of privacy-centric advertising.

Google’s decision to phase out third-party cookies marks a significant milestone in the evolution of digital advertising. As the industry adjusts to the new reality, advertisers must embrace innovative strategies and technologies that respect user privacy while maintaining effective targeting and measurement capabilities. The road ahead may present challenges, but by staying proactive and adaptable, advertisers can seize the opportunities that arise and continue to connect with their audiences in a privacy-conscious manner. The era of cookieless advertising is upon us, and it’s time to embrace the change.

Interesting Read: And Google Does It Again,  Delays Phaseout of Third-Party Cookies

 

And Google Does It Again,  Delays Phaseout of Third-Party Cookies

 Advertisers and publishers can heave a sigh of relief as Google delays phasing out of third-party cookies in the second half of 2024.  In light of the news, marketers, developers, and publishers will now be able to spend more time developing alternative privacy-preserving ad solutions. In spite of this, the industry feels the heat.

This is the second time Google pushed off the cookie demise. Previously, it extended the deadline to late 2023.  However, Anthony Chavez, Google’s VP of the Privacy Sandbox, explained in a blog post that the decision is made based on feedback.

“The most consistent feedback we’ve received is the need for more time to evaluate and test the new Privacy Sandbox technologies before deprecating third-party cookies in Chrome. This feedback aligns with our commitment to the CMA to ensure that the Privacy Sandbox provides effective, privacy-preserving technologies and the industry has sufficient time to adopt these new solutions.”

Chrome plans to extend its Privacy Sandbox API testing timelines ahead of the death of cookies. Chavez said in the  blog,

“This deliberate approach to transitioning from third-party cookies ensures that the web can continue to thrive, without relying on cross-site tracking identifiers or covert techniques like fingerprinting.

The web developers already have access to these APIs, and the company will roll out the trials beginning in early August.

“The Privacy Sandbox trials will expand to millions of users globally, and we’ll gradually increase the trial population throughout the rest of the year and into 2023. Before users are added into the trials, they will be shown a prompt giving them the option to manage their participation. As the web community tests these APIs, we’ll continue to listen and respond to feedback.”

For those unfamiliar, the Privacy Sandbox is Google’s initiative that replaces third-party cookies as well as cross-site tracking identifiers, fingerprinting, and other covert techniques once privacy-conscious alternatives have been developed.

Global regulators -all eyes on Google

Google’s privacy protocols have been on the radar of the global regulators after the UK’s antitrust regulator, Competition and Markets Authority (CMA) launched an investigation into the company’s cookieless solutions for the future.  While the CMA accepted revised commitments from Google, it pledged not to remove third-party cookies until it was satisfied that its competition concerns had been addressed.

The ad industry’s and CMA’s main concern is that Google should not dominate the digital advertising space if other companies do not have access to third-party cookies. Hence, Google pledged not to give preference to its own adtech after cookie deprecation and work fairly with its competitors.

With the cookie phase-out announcement, companies are already involved in developing alternate solutions like data clean rooms, independent web IDs, and more. This further delay will give them additional time to prepare, test, and adapt new solutions. Brands can utilize this time wisely. They can explore as well as evolve their data and tech strategies to prepare for a cookieless future.

 

 

Criteo Plans to Acquire IPONWEB In a Striking $380M Deal!

Criteo announced its intentions to acquire IPONWEB for $380 million yesterday, a move that might be essential to the company’s planned shift away from ad retargeting and into retail media.

The deal is expected to close by the end of the first quarter of 2022, subject to regulatory clearances, and will likely consist of $305 million in cash and the rest in Criteo shares.

Criteo’s CEO Megan Clarken called the agreement a pivotal moment in Criteo’s transition as the company wants to drive sustainable development and, more crucially, “revenue diversification” with the acquisition, which comes soon after the company’s purchase of Mabaya in May. In the press release, Clarken said – 

Criteo’s customers would benefit from enhanced full-funnel capabilities with even more flexible self-service tools while continuing to leverage Criteo’s unique commerce data for targeting, measurement, and superior outcomes.

Criteo is one of the most well-known names in digital advertising as a publicly listed firm with a market valuation easily above $2 billion. Criteo’s need to migrate away from a past dependence on third-party cookies to power its main ad retargeting business is a familiar one, with the company’s stock price plummeting anytime Apple or Google impose new ad targeting limits on their platforms.

Interesting Read: Clean Rooms Explained: How Marketers Can Prepare For Cookieless World

Criteo and IPONWEB: What’s The Deal? 

By integrating IPONWEB’s well-established DSP and SSP technology, Criteo advances its Commerce Media Platform ambition and delivers better control to its enterprise marketers – and their agency partners.

The agreement also extends revenue potential for media owners and provides important first-party data management services throughout the network. Criteo, in collaboration with IPONWEB, will establish itself as the open internet’s preferred commerce media partner in the post-third-party cookie and identifier era.

IPONWEB’s open technology and ethos are ideally matched with Criteo’s mission to promote a fair and open internet where technology empowers consumers, advertisers, and media owners to discover, innovate, and choose. 

Both firms have a deep technical culture that allows them to develop and tackle hard challenges at scale. They are also global with European origins, with privacy-conscious, sophisticated datasets and AI at their core.

Interesting Read: US and India-Based ZEDO’s Assets Acquired By Discovery

Furthermore, Criteo will soon have access to the whole suite of IPONWEB services, including BidSwitch, BidCore, and The MediaGrid, all of which are expected to generate additional revenue.

Criteo will have a product in BidSwitch, a marketplace that facilitates trades between more than 100 demand-side and sell-side ad tech providers, that will assist expand the addressable market for its first-party data offering. This will make “first-party data activation, interoperability, and measurement more seamless in the post-third-party cookie world,” according to the business.

In summary, the IPONWEB ad stack will provide Criteo with a full array of ad tech capabilities, allowing it to curate deals in a way that is less dependent on the soon-to-be-extinct third-party cookie.

Also Read: A Look Ahead: Convergence Of Linear TV And Digital TV Advertising

Buzzfeed Integrates Yahoo’s Alternative To Third-Party Cookies

The second phase of Yahoo and BuzzFeed’s strategic relationship was unveiled recently. This phase focuses on expanding addressable audience pools, which will provide advertisers with the scale they need as the usage of third-party cookies decreases, resulting in more programmatic advertising revenue. 

Advertisers that use Yahoo’s supply-side platform will get priority access to BuzzFeed’s network of sites, which includes BuzzFeed News, Tasty, HuffPost, and others. 

According to Iván Markman, Yahoo’s chief business officer, BuzzFeed will integrate Yahoo’s identity tech products, ConnectID, and Next-Gen Solutions, combining its first-party data with Yahoo’s to generate an addressable audience of over 148 million individuals.

Markman added – 

“We need to have solutions for publishers with first-party data and those without first-party data. And because we treasure our consumers, in order to do that we need to have a community garden, as opposed to a walled garden, where we partner with like-minded publishers to help all of us grow.”

Interesting Read: End Of Third-Party Cookies, What Is There For Marketers: Takeaway!

The agreement will assist both publishers to expand their advertising and data functionality, as well as boost audience scale, ahead of the looming deprecation of third-party cookies.

According to Ken Blom, SVP of ad strategy and partnerships at BuzzFeed, by giving preferential programmatic access to advertisers leveraging Yahoo’s SSP, BuzzFeed intends to enhance demand for its inventory and create greater ad revenues.

Preferred access allows BuzzFeed to establish arrangements with advertisers that use the platform ahead of time, such as ensuring them access to certain audience groups. This ensures that advertisers achieve their goals at scale, while BuzzFeed has access to the most diverse demand conceivable.

Also Read: Quick Guide: Top Programmatic Trends To Keep An Eye On In 2021

Impact of Delay in Deprecation Of Cookies By Google On Adtech

Google delays the Cookiepocalypse but should not be taken as a time to pause!

Google announced a nearly two-year delay to Chrome’s deprecation of third-party cookies to increase user privacy in its blog post. As the original 2022 deadline approached, it became clear that more time is needed to thoughtfully design privacy-first solutions without sacrificing ad-funded web. In its updated timeline for Privacy Sandbox milestones, Google announced,

1. It plans to develop a more rigorous process including extensive testing and deploy the Privacy Sandbox proposals across key areas, like admeasurement, targeting, and fraud detection. The goal is to deploy these by late 2022, scale adoption, and then phase out third-party cookies Chrome over three months in 2023 only after Privacy Sandbox Google has been fully tested and deployed.
2. Google plans to conclude the origin trial of Federated Learning of Cohorts (FLoC) and incorporate feedback received in the first implementation in the future testing.

Is this announcement a relief for the adtech industry? Well, it is a much-needed reprieve for publishers, marketers, and the adtech industry. The adtech industry should not pause the move away from cookies but continue to search for third-party cookies alternatives. Marketers must continue first-party-based targeting, contextual advertising, and a transparent, privacy-friendly future.

In this blog, we take a deep dive to learn about first and third-party cookies and how does the delay affects the adtech industry.

What is a Cookie?

In simple terms, it is a packet of data in a form of a small text file that contains user information and activity stored within the browser or within a subfolder in the user’s device.

First and Third Party Cookies Explained

There are two types of cookies.

• First-party cookies are stored directly on the website like individual information. The information is never shared with other parties outside the website.
• Third-party cookies are set by a third-party server (adtech) using a code placed on the web domain. The data collected on third-party cookies are accessible on any website using the third-party server code. An advertiser can track users across the internet and target advertising wherever the user goes. They are mainly used for remarketing by advertisers.

Google and Third Party Cookies.

Why is Google doing away with third-party cookies?

Safari and Firefox had blocked third-party cookies settings and Apple claimed a competitive advantage by positioning itself as a privacy-first tech company. According to Pew Research Center, 72% of Americans worry that most of what they do online and on their cellphone is being tracked by companies and 81% believe the risks outweigh the benefits when it comes to collecting data. Google in the 2020 blog post wrote,

“Users are demanding greater privacy–including transparency, choice, and control over how their data is used–and it’s clear the web ecosystem needs to evolve to meet these increasing demands.”

Therefore, Google planned to phase out 3P cookies eventually to avoid any negative impact on the online advertising business.
Even though Google isn’t the first web browser to block third-party cookies but the biggest. Techadvisor reports that Google Chrome accounts for more than half of web traffic. As Statista reports in 2019, Google Chrome made up more than 56% of the web browser market.

How does third-party cookies death affect the ad business?

The death of third-party cookies will have a significant but limited impact on the digital ad business as Google moves a step forward for privacy. Google will collect data and use it to target ads. However, it won’t allow cookies to collect data and sell web ads targeted to individual users browsing activities. This means the raw data like clicks and conversions will be available but specific data points used by advertisers for targeting will be lost. Therefore, ad companies will have to find third-party cookie alternatives to target users.

Options For Ad Companies In The Post-Cookiepocolypse World

There are three major options for the companies to show relevant ads and measure the effectiveness of the campaign in the absence of third-party cookies.

• Google is championing technology developed through Privacy Sandbox-a browser-based tracking model. Federated Learning of Cohorts (FLoC) is an internet-based advertising technology where Chrome will track user’s browsing habits across the web and categorize them in various cohorts alongside audiences with similar interests. Advertisers will show ads to cohorts rather than individual users. The tech giant claims to expect its FLoC technology to be at least 95% as effective as cookie-based advertising — but ad-tech players still have concerns.
• Publishers and Brands are building their own models based on first-party data. Large-scale publishers like the New York Times, Vox Media, and others have already launched their own ad targeting systems based on first-party data.
• Some brands from the ad tech industry are developing identity-based tracking similar to cookies. The leading ad tech company Trade Desk has developed a prominent solution Unified ID 2.0 which has received support from ad tech companies and groups.

Why Has Google Decided To Delay The Deprecation Of Third Party Cookies?

The complexities of removing cookies and delay in implementation of its own Privacy Sandbox system that includes FLoC technology resulted in the delay of deprecation of third-party cookies.
Another reason to phase out by the end of 2023, is the regulatory scrutiny from both sides of the Atlantic. The UK Competitions and Markets Authority (CMA) investigation has raised concerns about whether the new cookie-replacing technology, which categorizes users into ‘cohorts’ is giving an unfair advantage to Google over its competitors. The CMA is investigating if this move by Google can result in advertisers shifting budgets into Google Ads. Vinay Goel, Privacy Engineering Director, Chrome, said:

“We plan to continue to work with the web community to create more private approaches to key areas, including ad measurement, delivering relevant ads and content, and fraud detection. Today, Chrome and others have offered more than 30 proposals, and four of those proposals are available in origin trials. For Chrome, specifically, our goal is to have the key technologies deployed by late 2022 for the developer community to start adopting them. Subject to our engagement with the United Kingdom’s Competition and Markets Authority (CMA) and in line with the commitments we have offered, Chrome could then phase out third-party cookies over a three-month period, starting in mid-2023 and ending in late 2023.”

Should Marketers Change Marketing Strategies Over the Delay?

In response to longer timescales, marketers should not get distracted from the larger context of the moment. The industry is gradually transitioning from opaque consumer data collection to privacy-focused and transparent solutions.
It is essential to understand that there is a delay and not a change in direction, hence stay focused to find authenticated solutions in parallel to cookie strategies through 2022. The next two years are crucial as it gives marketers and the adtech industry time and space to test, and iterate solutions to build consumer trust.
Marketers should continue future-proof targeting and measurement strategies, prepare a sustainable approach for a data deprecated future and invest in first-party data solutions to maximize revenue and personalization.

Expert Chime In On The Recent Change

Some expert opinions from across the adtech ecosystem as quoted by Exchange Wire.

• This news appears to have been met with a huge sigh of relief from the advertising industry, as well as Wall St where the share prices of major DSPs and SSPs saw big spikes. – Rob Hall, CEO, Playground XYZ

The ad tech social sphere was immediately alight with commentary, with a lot of people in the industry proclaiming how nice it was to have more time to work on solutions. But I feel they’re all missing the point: we need to depart from the reliance on third-party cookies as soon as possible because consumers have made their position crystal clear: they don’t want to be tracked around the internet. The fact that Google has delayed these changes due to the ad industry not being ready shouldn’t be met with relief. It should be met with a humble acknowledgment that, if you’re still reliant on third-party cookies, you’re increasingly behind the times. This delay isn’t a lucky break. It’s a stay of execution.

We need to re-shape advertising to not be so reliant on following people around the internet and instead use techniques that reach consumers – on their terms. We think the future of advertising is cookie-less and, largely, identity-free. Consumers have already made it clear that this is what they want, not in two or three years’ time, but today. So, yes, you could keep using third-party cookies for a little while longer. But just because you can, doesn’t mean you should.

• The future is still coming – Kevin Joyner, Director of Data Solutions, Croud 

Don’t let Google’s announcement lull you into a false sense of security. Google has not paused the GDPR. Safari and Firefox still exist and have the same significant user base. Mobile and therefore iOS isn’t any less important. Digital attribution is still flawed and unreliable on its own. Automation is still leveling the advertising playing field, and so you still need to activate first-party data to continue to compete. All your “cookieless” plans are still needed, and the future is still coming.

Final Words

Privacy is one of the major concerns on the internet for users. Therefore, the need of the hour is to build an infrastructure based on first-party data. The delay in deprecation of third-party cookies will help to build an advertising ecosystem upon which brands, marketers, and publishers can depend. Now, all eyes are on Google who is working on building a privacy-focused advertising platform. Getting right is crucial as the significance of digital marketing is growing and a longer timeline will help to develop multiple solution approaches.

Relief To Advertisers As Google Postpones The Elimination Of Third-Party Cookies Till 2023.

The news has given some time to the advertisers to look for options. Google has decided to continue using third-party cookies in its browser till 2023. That is an extension of two years.

Earlier, Google did set this deadline for January 2022. It has now extended to late 2023. An announcement was made by Google regarding this today!

There are several reasons why Google decided to do so. Let’s have a look at them in detail:

The United Kingdom was building pressure on Google

For a year, it is chaos, and advertisers were clueless about their operations without the third-party cookies. However, the speculations are that Google decided under building pressure from the UK government.

Google was under continuous monitoring by the European Commission, and it failed to provide any clear perspective on its Privacy Sandbox. Google is facing several antitrust lawsuits, and according to the CMA, the discontinuation of third-party cookies and the creation of the Privacy sandbox will centralize power at Google.

CMA took this quite seriously, and to please the committee, Google has agreed with a long list of commitments to CMA. According to Google commitments, the company will restrict giving priority to its system. Also, it will not use “sensitive information provided by an ad tech provider or publisher to Chrome in a way that distorts competition.

To prove the point, Google stated that “Subject to our engagement with the United Kingdom’s Competition and Markets Authority (CMA) and in line with the commitments we have offered, Chrome could then phase out third-party cookies over three months, starting in mid-2023 and ending in late 2023.”

Federal Learning Of Cohorts(FLoC)

Google will continue testing FLoC and Privacy Sandbox. The trials for FLoc will continue and concluded by 13th July. Currently, only limited supply-side publishers and ad-management firms related to them will be able to FLoC during the trial phase. Once the tests complete, Google will share the results. These results will help in the improvements and can be applied to the existing system, and other agencies and advertisers can conduct the ability tests for demand-side platforms and ad-targeting.

It is not surprising that Google has paused the FLoC trials. The advocates of privacy are raising their voices about the foul play and violation of privacy due to the enabling of new tracking techniques. However, several browsers declined to enable these techniques of data tracking.

Google received a setback after the eCommerce giant Amazon, which has also declared that they will not be enabling the FLoC tracking techniques.

Demand for higher transparency

The delay in the release of FLoC and the dismissal of third-party cookies is causing frustration in the industry. According to an executive, “I wish they would just do it. Stop justn — excuse me — dicking around the whole industry. Let everybody get to a new normal. It’s hard to strategically plan this way,” said one publishing executive.

However, the delay in the dismissal of third-party cookies can be a step to make things more transparent as Google does not want to bear more criticism and lawsuits from the authority.

Google has already committed to CMA that they will be disclosing the exact time for the proposals for Privacy Sandbox publicly. It will also release the API and inform about the transition period for the discontinuation of third-party cookies.

Google has also promised the CMA that they would assess all alternatives for individuals and the aftermath of the discontinuation of third-party cookies. Google also stated that these steps will be taken before providing a 60-day countdown for the discontinuation of the third-party cookies. During this period if found any discrepancies, CMA can reopen the investigation and can impose additional measures to avoid any harm to the competition.

According to Google promise, they will “engage with the CMA in an open, constructive and continuous dialogue in relation to the development and implementation of the Privacy Sandbox proposals.”

 

Group Nine Launches First-Party Product In Wake Of Cookie Apocalypse!

In a fitting response to the impending disappearance of third-party cookies, Group Nine Media launched a first-party data solution called – ‘ In-GeNuity’, earlier this month. Group Nine is the publisher of Thrillist, NowThis, Seeker, The Dodo, and PopSugar. 

Situated in New York, Group Nine Media is an American digital media holding company, and its latest product – In-GeNuity – is useful in matching brands with users based on content preferences. So, this first-party data solution will bring together a pizza enthusiast and a pizza delivery service. 

Ashish Patel, the Chief Insights Officer at Group Nine, said – 

We can say, here’s a segment of Papa John’s, here’s everybody that watched 30 seconds of a Thrillist pizza video over the last six months and we think that they’re a better audience to download your app.

Integrated with Group Nine’s G9 direct response, In-GeNuity allows direct-to-consumer brands to utilize the company’s first-party data archive, and then send targeted ads to consumers through Group Nine’s Facebook and Instagram handles. Some of the DTC advertisers that have worked with G9 Direct include Casper, Freshly, Discover Plus, and Fi. 

With the In-GeNuity, Group Nine joins the vast club of brands and publishers who are looking to future-proof via their first-party data.

Ashish Patel got into a conversation with AdExchanger and was asked why the company chose to build a first-party data platform. Patel said that all the publishers are making such an effort in response to a “ cookie apocalypse” and the third-party tools going obsolete. He said that Group Nine is in a good position to offer unique audience segments in a way that if a user has read five or more pizza articles on Thrillist, or has watched a video pertaining to pizza for more than 30 seconds – then Group Nine can direct these people to a Pizza company. 

Content preference, according to Patel, is the key point in In-GeNuity’s logic. 

On being asked how the demise of third-party cookies is changing clientele demand, Patel said – 

They’re asking for more retargetable data back. It’s table stakes at this point. We always thought that if you come to us and we hand you an audience segment that you’ll never come back. The sensitivity around that sharing has decreased from the publisher side, and the demand from the advertiser side has increased.

Patel also threw some light on how In-GeNuity will fit into the larger strategy with G9 Direct. He said that Group Nine Media want to start to incorporate and implement segments from In-GeNuity across all their activities, like top-funnel branded content work. The aim is to get that to a more targeted consumer at the top of the funnel, which should work for them and their partners. 

In-GeNuity seems like a good response to prevailing times of the collapse of third-party cookies and will re-energize consumer experience. 

 

End Of Third-Party Cookies, What Is There For Marketers: Takeaway!

Introduction

Google has announced that Chrome will not support Third-party cookies. Following this, other browsers are following the footsteps of Google. Also, one must not forget that Google has the largest market share of the advertisement business. Therefore, it would not be false to say that it is the end of an era and the inception of effective advertising is taking place. 

 

Understand the behavior of Third-party cookies!

 

Since the Third-party cookies will perish soon, it is not a tutorial on how the third-party cookies work. However, you can consider this as good information. It will help you understand and devise new strategies for launching an upcoming advertising campaign effectively.

 

Cookies

Every time you visits a website, a cookie-enabled website monitors the user behavior. It stores the information in its stores so that when someone visits the website next time, it can populate the results according to the choices made by the user on their previous visit. 

 

Cookies are small storage units that can save a proportion of data for the user, and later the advertisers can use the data to study the user behavior and ease their experience by providing them with the results according to their interests. The cookies used by the website are known as first-party cookies. It solely belongs to the website and can only be accessed by the development and advertising teams of the website. They use this data for understanding the user behavior, and populating advertisement and results based on the user’s preferences.

 

However, the Third-party cookies do not belong to any website. They connect to an advertising server that also reads the user behavior the same way as the first-party cookies. Third-party cookies are independent of any website and can use the data to trace the overall journey of a user on the internet and later map the data and provide advertisement across the internet as per the preferences made by the user on any channel that they might have used. This data is vulnerable and can be accessed or purchased by different organizations to fulfil their goals of running successful advertising campaigns and portraying their products so that users can be drawn to a particular website and compelled to purchase products.

 

How advertisers will be affected by the discontinuation of Third-party cookies?

 

The news has created a commotion in the advertising world and left the advertisers thinking about their next step. There is a rumor that things will worsen for the advertisers, and there will not be a freeway that will lead them to success. However, it is not all true!

 

Yes! Ending third-party cookies will have some drawbacks, and the small advertisers who were gaining benefit from small investments in the marketing world will have to suffer for a short period. However, the ending of third party cookies has opened a void that is also a gateway for opportunities for the new ecosystems to emerge. An example of this is the emergence of Amazon who is ready to fill the void with its informative system. Amazon is in word with several companies to come together and create a new informative system that will be solely working on the Amazon ecosystem. 

 

Soon the other companies will see the opportunity and will try to Ancash it with their ecosystems. Therefore, there is a greater chance that Google will lose its monopoly in the advertising world.

 

Firstly, it will help the advertisers to frame their campaigns better. Keeping in mind their needs and the audience they want to reach. Secondly, it will ensure that the user data is safe and secure. If there is a breach user will know whom to blame.

 

The step to end the Third-party cookie is an aftermath of continuous interrogation and questioning about the security of user data by authorities of various countries. Companies like Google and Facebook have faced a lash from government authorities for their failure to prevent the security breach on their server. Hence, the discontinuation of Third-party cookies is seen as a positive reinforcement to prevent the user data from getting public and sold on the dark web.

 

Due to this step, there will be more transparency, and advertisers can benefit from it along with the users. It will lead to an authorized sharing of data with authorized publishers and with trusted partners only. Hence, creating a secure ecosystem for all.

 

It will lead to security, and now the advertisers can even make a stronger bond with the customers as the end-users will be able to put deeper trust in the brands. The approach will end the leakage of the data to unauthorized sources. It will give an upper hand to the brands which customers trust and ultimately eliminate the untrusted brands creating a sustainable ecosystem. However, this does not mean that new brands can not emerge. They will have to go through vigorous security checks and have to prove their loyalty to the customer and promise the security of their data.

 

Revolution has started!

 

The revolution has already begun! Advertisers and marketers have already started shifting their focus from third-party cookies to first-party data. It is a good thing as there will not be any manipulation in the data received from the first-party websites and the campaigns can be run effectively generating better results for the advertisers.

 

In the age of pandemic, people were forced to shop online on a more frequent basis compared to earlier. Hence, the first-party data can prove to be highly useful for the advertisers as things have started to relax. Advertisers approach the user more confidently with trusted data provided by the authenticated websites.

 

Yet, there is a larger population of advertisers who are still relying on third-party data. According to research conducted by Forrester for Permutive, it was concluded that approximately 41% of marketers are still relying on the data generated by third-party vendors. However, they must understand that it is a peak time to change their approach or they will perish along with the third-party data suppliers. Hence, it is time to get rid of the old ways and adapt to the change.

 

The Future is here!

 

As the sun is setting for the third-party cookies, it is expected that approximately 95% of the web will become anonymous. Therefore, creating a huge void on the web providing a basket of opportunities for new ecosystems to emerge and establish a milestone and registering their name and catering for a huge audience.

 

It is crucial to note that cookies will be of paramount importance in the future. Publishers will have to establish the connection with the users using the cookies, and there will not be another way around.

 

Using the first-party cookie data by the publishers can build an effective strategy to overcome failures. They will get the data directly from the websites instead of putting their trust in any third-party vendors.

 

Google has announced its Federal learning of Cohorts (FLoC) which will determine the preservation of privacy. Hence, providing a mechanism that will help advertisers select advertisements based on the user interest.

 

The cohorts at the publisher’s end will ensure that privacy is maintained preventing leakage of data. It will also allow them to gather and categorize information, as the data and inventory will be connected.

 

Even though the collection of data via first-party channels will get painless and authentic. Yet, advertisers are in dilemma and unsure about moving to a first-party ecosystem. However, there is no need to panic! It’s all about finding the right partner who can welcome you to their ecosystem and make you feel like family.

 

Conclusion

 

We understand that many of you are looking for answers to this problem. However, it is not a time that one should spend worrying. It is an opportunity that must be explored for building a strategy and start experimenting with the ecosystems. It will help you gain momentum and have a better understanding of the ecosystems. Remember that we live in a world of uncertainty, and being prepared for the unexpected is the best we can do.

 

Amazon Is Creating Ripples In The Digital Market With The Announcement Of Its Identifier.

 

Discarding the third-party cookie by Google is the hot topic of discussion in the technology market. By this move, Google is trying to benefit its publisher services and DSP. However, this has created a void in the market, and Amazon is all set to fill this void.

To make sure that the void is sealed the eCommerce giant is meeting various leading companies to discuss and plan techniques that will help them track the customer journey over the internet using Amazon’s advertising ecosystem. It has been found that three prominent companies are already in discussion with Amazon regarding this. Therefore, one can soon expect to have an identifier by Amazon. However, the timeline has not yet been shared by the tech giant.

There are several open identifiers available in the market like Live Ramp and Trade Desk. However, Google has made it clear that they will not be supported any longer. On the other hand, the new identifier launched by Amazon will be limited to its ecosystem. It could be a concern for many advertisers. However, they must understand that it is time to choose a side and decide which boat they will be sailing.

“They are thinking about it more in terms of Google’s ‘ppid,’ where it’s siloed to a particular network of O&O sites,”. “It would be more as a means to inform their DSP of frequency and attribution while maintaining an identity silo.” The statement was released by one of the companies which is in talks with Amazon regarding its new identifier.

Even though the date for the launch of the identifier is yet not released, it has created a wave of commotion in the advertising industry. It is reported that Amazon is working vigorously to make things possible. However, its priority is to make the security non-penetrable. When compared to Google, Amazon is a small fish in the advertising industry. Therefore, such a bold step was not expected by Amazon as there is so much to invest before Amazon can eat the fruits of success. According to a spokesperson the identifier will be operative following Amazon’s opt-out policies, privacy notice and interest-based ads.

However, it is a speculation that once things are in motion, it can turn the tables around and end the monopoly of Google in the field of advertising. It is not just a speculation, but after monitoring last year results of a survey conducted by the Advertisers Perception, it was found that Amazon’s DSP ranked first among other DSP’s.

It will not only help Amazon to set a firm foot in the field of digital advertising but will also help in boosting its APS business.

APS was always going to be a differentiator for them, An identifier’s kind of a door opening to push this more,”
#MightyHive, commerce practice director, Nicholas Seo.

As stated above, the identifier can create a new era where advertisers have to choose or invest more money in their advertising strategy.

According to a source of the company, in talks with Amazon about its new identifier stated:

“I do wonder if the buy-side is ultimately just going to have to settle for a set of further fragmented buys than what they do today”.

However, there are no executives available who can give a clear perspective of this new identifier and answer the queries of an individual. Yet it has been said that the identifier will be only available to those who will fulfil the requirements of Amazon.

Google is yet to work on the fundamentals of Publishers Provided ID, and it is in an experimental stage. It is important to note that PPI has played a crucial role in deals made in the private marketplace.

However, the ability of Amazon to map the transactions has given him a better hand with a stronger DSP. It is sure going to give Amazon an upper hand.

“As advertisers look to navigate the future, they are going to continue to look to partners in the near term who can do 1-to-1, both targeting and measurement, the measurement front, the partners that have that closed-loop look are going to become increasingly important”.
#Lauren Fisher, Advertiser Perceptions, EVP of business intelligence at the research firm.