When it comes to the future of cookie-based targeting, there is a frequent tendency to shift responsibility to and fro. Agencies, publishers and marketers are discussing numerous theories and like to speculate about “solutions that are not ready for the market yet” – however, very little has changed in concrete terms. This is a mistake, Svenja Erdmann, Head of Programmatic Development & Innovation at Crossmedia Germany, says. The reticence of all those involved is slowing down development rather than taking it major steps forward.
Currently, the future of third-party cookies is one of the topics we see popping up in every newsletter, blog post or panel discussion. However, when looking past the press campaigns and directly into the agencies, publishers or even into companies, it quickly becomes apparent that all involved parties tend to be skating on thin ice. There is a great deal of discussion, yet everyone is still adopting an approach of wait and see. The Cookiekalypse is not just looming on the horizon of tomorrow or the day thereafter – we are already feeling the impacts today. Which, quite frankly, represents a huge opportunity.
On account of the browser settings, third-party cookies can already only be used for traffic via a Chrome browser. With a market share of 40-50%, this is indeed the market leader. Conversely, though, advertisers are already losing around half of all users. They simply cannot be addressed as long as companies exclusively use cookie-based targeting.
Thus, getting to grips with the cookieless future also means exploiting efficiencies in current campaign targeting. Often, cookieless inventories can be purchased at a better CPM, as demand is still limited. What is more, we currently see a huge opportunity to test different targeting options in addition to classic third-party targeting. With a correct test setup, this would ensure the greatest possible comparability and provide valuable insights for the future.
Here’s what we can do right now to prepare for a world without cookies
- Testing and benchmarking contextual targeting
It is still unclear which ID solutions will prevail in Germany. Topics will come and, with it, bring innovations for Chrome. Until then, marketers should learn what impact a switch to content-based / contextual targeting will have in comparison to the current granular user data via third-party cookies. An approximation can already be made today by testing contextual data partners and publishers to estimate the effect on main KPIs. - Test existing ID solutions and learn from them
We can already launch the first test balloons with the available ID solutions in Germany today. This way, it’s possible to address users who are “lost” via Firefox, Safari and Edge, in addition to Chrome users. Currently, initial tests can be set up with ID5-ID, e.g., via the Ströer inventory. The targeting technology can already be used, and the first results are impressive: Virtual Minds, Ströer and OS Data Solutions, for instance, were able to increase the advertising reach in all relevant browsers by up to 78% and achieved a CPM for the advertiser that was about 10% lower in browsers without cookies, when compared to Chrome, by using the ID5-ID instead of third-party cookies. - Expanding first-party data
The development and expansion of first-party data on the part of advertisers is probably the most discussed solution to the cookie changes. So as to generate more insights about their target audience, marketing departments should invest in good CRM systems, user surveys and content creation. First-party data can also be used in the course of campaign targeting via interfaces to walled gardens and, with the appropriate technology, for programmatic campaigns. Currently, via so-called data clean rooms, the exchange of first-party data between companies is also already possible.Nevertheless, this approach does not work for every advertiser. For instance, attracting potential customers from the FMCG sector to a company’s own website, obtaining their consent or even their contact data, and then constantly supplying them with relevant and new content can be far more costly than simply addressing a broad mass via available data segments. By contrast, for e-commerce and complex services, building up first-party data is indispensable for winning customers in the future. - Prepare campaign evaluation and attribution
Already today, due to cross-device and cross-browser customer journeys and the aforementioned cookie tracking limitations, it is impossible to track and measure a customer’s entire journey. With the upcoming changes relating to the Chrome browser, the remaining data will be weakened even further. As a result, upper-funnel channels will be even more significantly undervalued in the future. All of this makes it more important than ever to build an attribution model that continues to account for the opening channels in the marketing mix, allowing efficient media mix decisions to be made that steadily increase overall ROAS. - Promote training, exchange and transparency
Probably one of the most important points in preparing for the cookieless future is to create a uniform understanding of the change in advertisers and agencies, and to learn with the changes. The cookieless era is coming, and we will adapt strategies and campaigns. It would be fatal if, out of sheer uncertainty about technologies and their application, walled gardens continue to profit, while the free media landscape has to contend with consistently high revenue losses. The media mix should continue to be optimized and changed on the basis of efficiency. And here we clearly see that reach, coupled with the environment quality of large site operators on the open web, provide a strong contribution to brand and performance campaigns and are indispensable to media plans.
The end of third-party cookies does not mean the end of effective digital planning. Quite the contrary, it is a new beginning, and there is no reason to continue behaving like a rabbit caught in the headlights.
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