It’s a funny thing settling into a new year as you try to shake off the Christmas indulgences and wrap your mind around everything that’s changed and everything that’s stayed exactly the same. Because it might be a new year but it’s still just another a Monday morning.
One thing that has undoubtedly changed this year already, however, is Google and the so-called “death of the cookie.” On January 4th, Google started officially rolling out their plan to disable third-party cookies for 1% of Chrome users and, while the full phase-out isn’t meant to kick in until the end of the year, ad land is already starting to make plans for a cookieless 2024.
It’s a significant shift that marks an end to a prevalent form of online user tracking and a cornerstone of digital advertising. It’s a move that means the way advertising campaign success is measured will have to fundamentally change and that’s not a small thing. A sobering thing to wake up to if nothing else.
To dive deeper into what this all means for adland, I reached out to a few experts to gather their opinions on what a cookieless future really looks like.
Carol Howley, CMO, Exclaimer
Google’s third-party cookies phase out starting today leaves no room for mismanagement of data. As we approach a zero click world, marketers must now explore alternative strategies to achieve desired results and address the challenges posed by limitations in data tracking.
To increase conversion, marketers need to look into diversifying tactics to target customers across content, search and paid looking to ways to offer new users the choice to submit personal information. Partnership, influencers and review sites are also worth exploring to compensate for the loss of reach via third-party cookies.
We see customers leveraging campaigns with email signature marketing which facilitates personalised, one-to-one communication while fostering a relationship of trust between the recipient and sender. Focusing on creating a strong human-centric brand and the personalization of content at scale are no longer luxuries but necessities for standing out.
Ian Liddicoat, Chief Technology Officer and Head of Data Science, Adludio
The removal of third-party cookies for a random sample of Chrome users will take place on January 4th as part of Google's Privacy Sandbox initiative. This is an attempt by Google to allow website owners and developers time to assess the impact of this decision but has been in the works for months.
For advertisers, there should be no surprises here, as they have had ample time to assess the likely impact as well as test potential solutions. Strategies will likely include gathering first-party data with additional consent management, using advanced contextual targeting, and greater use of AI to establish cross-device behaviour at the segment level while preserving privacy.
Looking ahead, what matters ultimately is that consumers value the relationship they have with a given brand and, as a result, are willing to share personal data governed by more stringent privacy controls. This will see an even greater emphasis placed on gathering and accurately maintaining first-party data.
Aly Nurmohamed, COO, Permutive
After a long wait, Google is finally beginning to deprecate third-party cookies, opening up a significant opportunity for publishers and advertisers to change advertising for the better.
Publishers find themselves in the influential position of being able to fill the data gap that will exist due to lost user-level data. They have access to the behavioural, lifestyle, and demographic signals they capture online and offline and the power to leverage this information, enabling advertisers to target without the need for third-party cookies.
Forming more direct relationships with advertisers is a strategy many publishers are focused on this year, with 58% of respondents to a recent Permutive and Digiday survey stating that they expect 41% or more of their 2024 ad revenue to come from direct-sold deals.
For advertisers, these deals enable them to reach 100% of their target audiences, which isn’t possible on the open web, where addressability is already only 30% of the population due to cookie-blocked browsing and data sharing opt-out. By publishers and advertisers working more closely together, the demise of cookies is an opportunity rather than a disadvantage.
Lukasz Wlodarczyk, VP of Programmatic Ecosystem Growth & Innovation, RTB House
We're optimistic about the 1% user test, viewing it as a starting point for the essential feedback loop in evolving new ad technologies. It's vital to acknowledge that the initial 1% user test is insufficient for comprehensive learning.
Buyers may (and most likely will) allocate higher budgets to cookieless campaigns during this phase, potentially distorting metrics. This will skew core metrics across publishers, AdTech companies, and advertisers. A broader data set is needed for a meaningful evaluation of the cookieless impact.
The initial 1% user participation in Google's cookie deprecation is a pivotal first move towards a cookieless ecosystem. Although it's just the beginning, this phase is fundamental for testing and adapting to new models. Looking ahead, the proposed next step is to increase the fraction of cookieless users to 10%.
This increase is crucial for more comprehensive testing and optimization, and for allowing the ecosystem to gradually adapt and prepare for a fully cookieless future. It's a strategic move to ensure a smooth and effective transition for all stakeholders in the digital advertising landscape.
Travis Clinger, Chief Connectivity & Ecosystem Officer, LiveRamp
We welcome the 1% third-party cookie deprecation in Google’s Chrome, as we’ve been ready for the signal-less future for some time, and are excited to continue helping our partners, customers, and stakeholders on their journeys to signal-less.
Companies that make the switch today have the benefit of selecting from tried-and-true solutions like LiveRamp’s Authenticated Traffic Solution (ATS) that have been proven to meet a global standard, generate value, and become a sustainable part of their marketing stacks.
Furthermore, implementing these solutions can lead to immediate benefits in both Google Chrome and cookieless browsers, but also beyond to mobile in-app and CTV, all while also enabling companies to test and benchmark while the cookie still exists today.”
Alvaro Pastor, CMO, EXTE
The long-feared cookie deprecation is, in fact, a significant opportunity for publishers to utilise new technology that will help them build better relationships with brands and monetise their content without the need for cookies.
Contextual advertising, in particular, will be massive for publishers, as it will improve the vertical reach of their media and, therefore, their attractability for brands. Likewise, contextual targeting enables advertisers to reach audiences at scale across premium inventory without breaching user privacy.
Contextual tools, combined with advanced socio-demographics, both predictive or from the publisher’s first-party data, will allow brands to advertise not just against high-quality, relevant content but also to know they’re reaching the right audience.
This will be a significant revenue driver for publishers as the cookie disappears. And by serving precision-targeted, non-intrusive ads, publishers can improve their readers' experience so that with contextual advertising, everyone wins..except the cookie.
A cookieless world’s impact on advertising
As you can see from the talking heads above, there appears to be a mixture of trepidation and optimism about the future but there are certainly a few key takeaways here.
For one thing, advertisers will definitely have to rely more on first-party data, collected directly from their audiences, which could mean a more significant investment in content and platforms that encourage users to share their data willingly.
Without third-party cookies, contextual advertising, which targets ads based on the content of the website rather than user behaviour, is also likely to see a resurgence.
Above all else, however, in a cookieless world, the ability to stand out becomes crucial and that’s where our old friend creativity comes into play. Advertisers and creatives will need to focus more on innovative and engaging content that attracts users organically.
Creatives will need to find new ways to understand their audiences without the insights provided by third-party cookies, focusing more on storytelling and content that resonates with users' current interests and behaviours.
The cookieless future isn't just a challenge either; it's an opportunity for innovation. Brands and creatives can build deeper, trust-based relationships with their audiences going forward and there's potential for more authentic, engaging advertising experiences that prioritise user privacy and choice.
Google's cookieless rollout is a significant shift for adland but it’s also one that will compel advertisers and creatives to focus more on quality content, first-party data, and innovative approaches to user engagement. It’s going to force creatives to be more…well… creative. Surely that can only be a good thing?
