The Impact Of Third-Party Cookies On Programmatic Advertising
The impending ban on third-party cookies is going to have a big impact on programmatic advertising. As mentioned before, cookies have been integral to the programmatic ecosystem, and without them, ad agencies are going to have a hard time collecting the data they need to target their ads effectively.
What’s more, the loss of cookies is going to make it harder for advertisers to reach their target audiences. Without the ability to track user behavior and target ads accordingly, they’ll be forced to rely on other, less effective methods, such as targeting by IP address.
Can Programmatic Advertising Be Done Without Third-Party Cookies?
Third-party cookies are set to come to an eventual end, but that doesn’t mean the programmatic ecosystem has to come to an end with them. While the loss of cookies is going to have a big impact on programmatic advertising, it’s not the death knell some people are predicting. There are a number of ways programmatic advertising can be done without third-party cookies, and likewise many ways marketers can prepare for their discontinuation. Through the following, we’ve listed the top five and explained how each can be used to keep your programmatic campaigns running smoothly.
As we’ve mentioned, first-party data is going to become increasingly important in the post-cookie world. This is data that’s collected directly from your website, rather than through third-party cookie data. The biggest barrier that marketers are facing in collecting first-party data is the extra work they’ll be required to put in to do so. This information isn’t simply handed to you the way it is with third-party data. You have to proactively collect it yourself, usually through forms or surveys.
How can this be made easier?
One way to make first-party data collection easier is to incentivize users for completing forms or surveys. This can be done by offering discounts, coupons or freebies in exchange for their information.
- Look Into Alternative ID Solutions
Several cookie alternatives have been proposed since Google first announced it would be phasing them out in 2020. These solutions have been designed to help marketers continue to collect the data they need for effective ad targeting in their programmatic campaigns. The most popular alternative is Privacy Sandbox, which is a set of open standards that Google is proposing. This solution would allow for some data to be collected and used for advertising purposes, without violating users’ privacy. Another popular solution is The Trade Desk’s Unified ID 2.0. This is an identifier that uses hashed email addresses for ad targeting. It’s already being used by a number of publishers, and it’s seen as a more privacy-conscious alternative to cookies.
- Invest In Relationships With Publishers
The next best thing from first-party data is second-party data, which is data that’s collected by one organization from another. This data is usually high-quality and valuable, as it’s coming from a trusted source.
One way to get your hands on second-party data is to develop relationships with publishers. This data can then be used for programmatic advertising, as well as for other marketing purposes.
As cookies begin to discontinue over the coming months, marketers will be best served by sharing data through these kinds of relationships.
- Try Contextual Advertising
This is where Gourmet Ads has been focusing for the past few years since the demise of cookies was announced. Contextual Targeting is a form of digital marketing that targets ads to users based on the content they’re consuming. This can be done through keywords, topics or even the tone of the content.
For example, if someone is reading an article about smoked brisket, they might be targeted with contextual advertising for bbq sauce, meats or even a barbeque. This is different from cookies, which would target them based on their past behavior or intent.
Contextual advertising is seen as a more privacy-conscious alternative to cookies, as it doesn’t rely on personal data. It’s also seen as more effective, as it targets ads to users who are already interested in the product or service.
- Start Testing Non-Cookie Based Solutions Immediately
Just because Google has pushed their third-cookie ban back multiple times doesn’t mean that you should procrastinate on what is clearly an inevitable change to come in the digital advertising sector. The time to start testing and implementing non-cookie solutions is now.
It’s important to remember that not all of these solutions will be perfect, and that there will likely be a period of trial and error as we all adjust to the new landscape. But the sooner you start, the better prepared you’ll be when cookies finally do disappear.
The decline of third-party cookies is inevitable, and it’s going to have a big impact on programmatic advertising. Advertisers are going to have to find a new way to collect data and target their ads effectively. Media buying and selling ad space on publishers’ websites will be changed after these amendments. But, like anything, this change presents an opportunity for innovation and new ideas. So, while the loss of third-party cookies may be a blow to programmatic advertising, it’s not the end of the world. There’s still a lot of potential for the digital advertising industry to grow and evolve, even without cookies.
Since advertising process has changed after the ban of first and third party cookie by major browsers. We may expect advertisers to dedicate greater resources to alternative formats as they shift away from strategies that rely on third-party data. Advertisers found new ways of data strategy, ad revenue and contextual advertising. Many digital advertisers believe that programmatic ads have improved after the demise of third party.
Modern techniques in programmatic advertising help advertisers to sell ad space more in a better way. Their capability of ad spending and contextual targeting has been refined. No doubt, traditional marketing has plummeted. New data driven marketing techniques have evolved which offers advertisers an opportunity to do behavioral targeting and audience targeting.