In this episode I talk about Google’s announcement regarding phasing out support for 3rd party cookies. What are 3rd party cookies? What do Brands need to do to prepare for the changes and what is google proposing as an alternative to 3rd party cookies?
Ad Exchanger calls it the “Cookie Carnage” some are calling it the “Cookie Apocalypse” because Google announced details more on and initiative called ” Privacy Sandbox” which in their own words is “to develop a set of open standards to fundamentally enhance privacy on the web… web more private and secure for users” They make the case that cookies which among other things were initially designed to make advertising more relevant to buyers are now being used in way far beyond their original intent. So the will be phasing out support for 3rd party cookies. So as a marketer you should better be paying attention because the potential impact on the Adtech /Martech industry is HUGE. Here’s a primer on everything you need to know about the ban of 3rd party cookies; who the winners and losers will be and what you can do now to prepare before 2022 which is when 3rd party cookies will no longer be supported.
This type of cookie is a 1st party cookie and is unique to that website and allows the website owner to do things like:
3rd party cookies which are cookies which include cookies dropped by the web browser you use when browsing the web and or cookies dropped by advertisers on a site – it allows advertisers and ad networks to:
So when Google phases out support for 3rd party cookies in 2022 and they no longer work how will that affect the Adtech, Martech and advertiser publisher ecosystem. Well there is a lot that needs to be figured out but let provide some context because we are talking about chrome which has 63% of the Browser reach and because Firefox and Safari who have already blocked 3rd party tracking this means that for advertisers 82% of the browsing ecosystem is affected.
The Privacy Sandbox will have 5 Application Program Interfaces API’s which Digiday says “Advertisers will use each API to receive aggregated data about issues like conversion (how well their ads performed) and attribution (which entity is credited, say, for a purchase)” these 5 Privacy Sandbox API’s will replace 3rd party cookies as follows:
In my opinion there will be Winners and Losers as follows:
The Brands with a strong and intentional 1st party data programs will win. Email could experience a bit of a Renaissance even as brands need to be expanding their 1st party data set to include cell phone numbers. Email will still be a solid part of a marketers arsenal and those 1st party cookies. Even old school attribution like last click might see a come back.
Data hygiene internally will become even more important and tech that enables brands to have a single consolidated view of the customer will win.
This is why you see brands like Nike acquiring AI tech like Celect , Zodiac and Design firm Virgin MEGA; or McDonalds acquisition of Dynamic Yield According to Bloomberg: “Dynamic Yield Ltd. develops a machine learning engine that enables marketers to increase revenue through personalization, recommendations and automatic optimization across web, mobile and email. Its platform provides solutions in the areas of segmentation, omni-channel personalization, optimization, behavioral messaging, recommendations, personalized emails, mobile personalization and dynamic advertising.”
P&G that has amassed over 1.5 Billion online IDs globally which it is using to build smart audiences. Marc Pritchard Brand Officer at P&G talks about how they have been acquiring device ID’s and PII through their DTC – Direct to consumer sites which enabled them to bring programmatic buying in-house. All these power moves put them in less of a vulnerable position than their peers in my opinion.
Publishers with logged in users will finally have the last laugh after programmatic RTB platforms had snatched their crowns for a while. Publishers with large walled gardens with sticky content and have the ability to provide advertisers contextual advertising will have some leverage. Native advertising will morph with players like Outbrain/Taboola who have these network relationships that enable both the rotation of the publishers own content and advertisers content should be ok. Platforms like Linkedin, Facebook that enable the use of 1st party data targeting through custom audiences will win.
Mobile strategies and device oriented ID’s will experience accelerated adoption
The power shifts from the web servers to the web browsers who as google indicates have had the challenge of not having a way to classify cookies and differentiate between the cookies that maintain your login credentials vs ad tracking cookies for example so when a user clears their cookies it’s all or nothing. They don’t want to outright block all cookies because this also gives developers who have hostile intentions; interlopers the ability to find other ways to track you with what is called “fingerprinting” … Google says “With fingerprinting, developers have found ways to use tiny bits of information that vary between users, such as what device they have or what fonts they have installed to generate a unique identifier which can then be used to match a user across websites. Unlike cookies, users cannot clear their fingerprint, and therefore cannot control how their information is collected.” Google is working with all stakeholders to create standards that balance out protecting users privacy but also allow for the continuation of the ad supported free content model.
Is it going to be one of the traditional players like Google or Facebook that become the keeper of the universal ID or will it be data consortiums like LiveRamp’s Universal ID? Or will it be a blockchain enabled platform like Brave … the jury is still out on that… it might be a whole new paradigm
need I say any more?
Or will Voice Technology make this conversation all irrelevant? I have no idea but as a marketer you can be sure I’m personally getting ready.
Ad platforms will have to re-engineer their platforms to work with this new 5 API structure and invest in more Publisher deals.
Developing and nurturing a trusted, memorable Brand becomes even more important. We’ll see the reduction of clickbaity sites as their advertiser pool will dry up. Brands who have been reliant on programmatic but dont have the brand clout or budget to do direct deals with publishers will struggle.
Poor retailers… its been a rough last few years and it’s about to get event rougher if they do not prepare for cross domain tracking to change, Industries like auto that have relied on audience segmentation which combines 3rd party cookies basically have 2 years to start figuring out.
As you can tell there is still so much to figure out but if I were you I’d be looking at being more deliberate about your data strategy.
As the Marketer and Speaker - Yoli is available for Keynotes, panel discussions, podcasts, interviews, guest appearances and more on Modern Marketing, Digital Transformation and the impact of technology in marketing performance management.
As the Author - Yoli talks to women, young people and professionals about navigating the corporate world with intention.
As the Advisor - Yoli is interested in Advisory roles for Technology businesses BtoC and BtoB where she can provide guidance on growth and go to market strategies.