Digital Advertising Landscape – Becoming Cookieless

Image Credit: Eugenia Kozyr on Unsplash

Inventories with Identity Are Declining.

If you’re running digital advertising for your business, you have surely heard of the death of third-party cookies. And if you’re utilising digital paid social advertising, I’d expect that your Facebook advertising sales have been impacted by Apple’s iOS 14 changes over the last few months.

Respecting users’ privacy in advertising is not a new topic for those of us working in digital advertising. For the past couple of years, the advertising industry has been discussing potential solutions for associated changes. The aim is to maintain and grow the advertising industry so we can support brands while protecting consumer privacy.

The digital advertising industry is approaching the challenge in 2 main ways:

1) Use of persistent IDs to replace cookies and look back at consumer footprints.

2) Contextual approach, which is based on consumer content consumption. It has capabilities around keywords and interest, predictive contextual targeting, and emotional placements to understand where the footprints were made.

Lindsay Wiles, Head of Programmatic at Verizon Media says they have launched a 3rd way to tackle the challenge. It’s called Next Generation Solutions and it uses contextual and real time signals like weather, location, and device types to feed into their machine learning algorithms in order to build profiles for the users. The Solutions work with consent based first party data to help advertisers connect with their desired audiences and to allow consumers to receive relevant ads.

Google is obviously a very big player in this revolution with Chrome announcing they would soon stop supporting third-party cookies. Their vision is to restore faith in the free web and to help people who think they are being tracked everywhere. Google is still committed to deliver results for advertisers, but they want to do it differently now by phasing out third party cookies and promising that there will be no similar replacement that tracks individuals. They started some tests such as the Privacy Sandbox this year and are gathering feedback on/insight into how these solutions might work in practice. However, like other industry players, they place emphasis on the power of first party data and customers relationships. They made a promise that they would continue to support first party relationships through their advertising platforms so brands can have direct relationships with their own customers.

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