The Future of Cookies
The Future of Cookies
The future of cookies is uncertain. It could be a cookie-free future, or a world without cookies at all. If it happens, what will it mean to marketers and tech companies? Here are some of the factors that will impact cookie usage and the future of cookies. We will explore what this means for marketers, alternatives to third-party cookies, and the impact on technology companies. In the next part of this series, we will discuss the impact on advertisers.
Google recently delayed its deadline to phase out third-party cookies until 2023. This will allow brands to test cookieless alternatives, but it is unclear how the cookieless future will affect the advertising industry. However, the future of ad spending will likely change, as advertisers will look to new ways to drive traffic. While the future of ad spending may be uncertain, the cookieless future will be an important one for marketers.
In the past, cookies were used to track consumers' preferences, but that is changing with the advent of cookieless advertising. The use of third-party cookies led to a lack of trust between publishers, advertisers, and consumers. These cookies are now being phased out and replaced by systems designed by companies like Google. This is the beginning of a new era for online advertising, but it will also come with its own challenges.
The cookieless future will be largely based on first-party data. This shift began in the second half of last year, and many advertisers are testing this new data. Currently, 70% of advertisers use first-party data for targeting and measurement. Some are also testing cohort-based and contextual-based data. According to an Advertiser Perceptions study, more than 70 percent of advertisers are using first-party data for their advertising.
A Cookieless future will require businesses to prove that they deliver advertisements to the right person at the right time, on the right website, and at the right time. In addition, marketers must be able to control the amount of repetition based on ad delivery. To regulate the cookie statistics, companies should look into the topic of identification. The cookie statistic may overestimate coverage of a branding campaign or underestimate the effectiveness of advertising based on too many cookies for a single consumer. The cookieless future will require new methods to track user behaviour, but companies can adapt to the changing data privacy landscape by adopting one of three strategies.
The cookieless future will be a difficult transition for marketers and ad agencies. While cookies have been an integral part of the digital world for the last two decades, their eradication will change the way marketing campaigns operate in the future. Marketers will need to revamp their strategies and focus on consent-based advertising. In the meantime, they'll need to reassess their Google spend. The key to a successful Cookieless future is to be prepared.
Impact on marketers
As Google plans to phase out third-party cookies, marketers are worried about the impact it could have on their businesses. These cookies are small packets of data placed in online browsers to track user behavior and sell the information to advertisers who then use that information to target ads to them. However, the demise of third-party cookies does not necessarily spell the end of cookie tracking, as it will still be possible to make informed decisions about what content and offers are most appealing to consumers.
However, companies must be aware that the loss of cookies will affect their business in several ways. First of all, they will need to reassess their budgets and look outside of the digital advertising channel to find new revenue streams. According to the Epsilon report, 70 percent of marketers believe that digital advertising will take a step back. They must also consider other channels of advertising to find the best ROI for their businesses.
Third-party cookies are one of the most common methods of tracking website visitors. They help marketers understand their demographics and interests, so it's important to understand their audience's preferences and how they act on them. Third-party cookies are a major part of IDFA and Apple's direct customer relationship programs, but they also compromise other identity solutions. According to the Epsilon survey, 62% of marketers do not believe that third-party cookies will improve consumers' experiences. Another study by Epsilon found that a large majority of advertisers rely on these cookies and feel disappointed with Google's decision.
With consumers becoming more aware of their privacy rights, the impact of cookies is inevitable. Last year, Google pushed out its third-party cookie phase-out deadline. By 2023, it will no longer allow third-party cookies on its website. This move stems from the company's concern about consumer privacy and web accessibility. But it also signals the beginning of a more transparent digital advertising ecosystem. Therefore, marketers should not get complacent in the face of this delay and stick with their old marketing strategies.
Alternatives to third-party cookies
Google is taking its time to phase out third-party cookies. It is creating an alternative that puts Google Chrome at the heart of the advertising process. Serpstat, a digital marketing company, can help you make the most of Google's new technology. Its experts can provide you with advice, training materials, and even test access. FLoC is Google's alternative to third-party cookies, and it enables advertisers to use hyper-targeting techniques without collecting data about individual users.
The IAB estimates that publishers could lose $10 billion in ad revenue if third-party cookies are deprecated. Google has estimated that publishers will lose between 50 and 70% of revenue unless they adopt a new approach to audience data. With these alternatives in place, publishers and advertisers will be able to continue to target users using contextual targeting, cohorts, and ID solutions. Google reports that it plans to block third-party cookies in late 2023.
Email marketing is a third-party cookie alternative. With email marketing, brands can send personalized content to their list of subscribers who've given permission to receive emails. By segmenting their lists, brands can also learn valuable insights about their target audience. Additionally, they can improve their campaign effectiveness and boost conversion rates. While many marketers feel threatened by the potential loss of third-party cookies, there are solutions available to meet their needs.
Moreover, third-party cookies are being phased out, but the importance of first-party data cannot be overlooked. As the ability to gather 1st-party data will increase, publishers should implement strategies such as value-added content and gated newsletters. By using value-added content, publishers can encourage users to register for newsletters, free reports, or other value-added content.
While third-party cookies have many advantages, they are not good for consumer privacy and have been subject to regulation. The advent of ad blockers and California Consumer Privacy Act have resulted in a greater awareness of the privacy risks associated with third-party cookies. Nonetheless, if marketers can leverage first-party customer data, they can still utilise powerful personalisation tools to improve their campaigns. So, what can marketers do now?
Impact on tech companies
The first step is to stop using third-party cookies. These cookies track your online activity without your permission. Typically, you have to opt-in before allowing third-party cookies, but some browsers have been blocking them for years. These cookies are essential to the targeting of advertising and marketing messages. Some analysts predict that the tech giants will dominate the online advertising market by 2023. But a major change will probably be coming to the way of the privacy of online advertising and the role of cookies in it.
The company has announced a delay in cookies for 2022, but it may be a few years before they are fully phased out. The company also pledged not to discriminate between rival digital advertising companies and will give 60 days' notice before removing third-party cookies. In the meantime, the company hopes to roll out new technology that will make it more difficult for third-party cookies to track people. By the end of 2022, it is likely that Google will have a privacy-preserving version of Chrome in use.
The California Consumer Privacy Act is already protecting consumers' personal information online. The act states that users can request the disclosure of data collected from them or the deletion of their data. Google is also phasing out third-party cookies in 2023, replacing them with a system of its own design. This change will also affect independent content websites. So if you're worried about cookies, you may want to take steps now.
The end of third-party cookies will also have a profound impact on digital advertising. Without cookies, digital marketers cannot deliver individualized ads and build customer profiles. They cannot use customer data without cookies, so without cookies, they'll need to adjust their strategies. In the meantime, it is crucial to make use of data collected by consumers. So don't wait for 2023 to change your marketing strategies. They'll need to change their strategies and practices to take advantage of the new system.