With the impending deprecation of third-party cookies, marketers find themselves at the crossroads of innovation and adaptation. As we bid farewell to this identifier, the emphasis shifts to forging deeper connections, understanding customer needs, and navigating the marketing landscape with data-driven precision. At Experian, we stand as your trusted partner, committed to guiding you through this transition. In this blog post, we’ll explore:
- How third-party cookie deprecation is impacting digital advertising
- Six alternatives to third-party cookies and where they fall short
- How Experian can help you navigate a cookieless world
Four ways third-party cookie deprecation is impacting digital advertising
Third-party cookie deprecation is causing significant challenges within the AdTech industry, manifesting in four key areas:
- Reach: Advertisers and demand-side platforms (DSPs) will face difficulties in reaching their target customers due to the absence of third-party cookies.
- Understanding audiences: Advertisers will find it challenging to understand the demographics and behaviors of their customer base without third-party cookies. Similarly, publishers are struggling to identify their audiences accurately, resulting in less addressable and appealing inventory.
- Measurement: Measurement providers may encounter obstacles in accurately assessing the effectiveness of advertising campaigns. Additionally, DSPs are finding it hard to measure the impact of their ads without the assistance of third-party cookies.
- Matching: Data providers may experience challenges in matching users with the appropriate audience segments, leading to difficulties in delivering targeted advertising.
Six alternatives to third-party cookies
As the deadline approaches for Google’s removal of third-party cookies from Chrome by the end of 2024, marketers are scrambling to discover alternative methods for delivering effective advertising. Fortunately, various alternatives are emerging. However, the abundance of options can create confusion rather than clarity. Which alternatives are worth considering? Here are six compelling alternatives to third-party cookies:
1. First-party data
Acquiring consented first-party data directly from users is becoming increasingly vital as it can lay the groundwork for more precise targeting.
2. Universal IDs
Alternative identifiers like The Trade Desk’s UID2 and ID5’s Universal ID are becoming increasingly important, offering the ability to maintain a comprehensive consumer view across channels and platforms, leading to enhanced personalization and addressability across various channels, even in cookieless environments.
3. Identity graphs
As browser-based IDs shift and digital signals decline, the need for an identity graph grows, with companies adopting a “graph-of-graph” strategy by combining their own robust first-party data with licensed identity graphs, as highlighted in recent announcements by industry giants such as Disney, VideoAmp, and Magnite.
4. Contextual targeting
Contextual targeting aligns publisher content with relevant ads, ensuring ad delivery based on content rather than individual identifiers. This privacy-respecting approach is less dependent on third-party cookies, providing effective audience activation.
5. Data collaboration
In a cookieless world, it becomes more difficult for companies to “communicate” with one another. We expect to see more pick up of data collaboration in the market, using addressable IDs and identity resolution to power connectivity between partners and their data sets.
6. Google Privacy Sandbox
The primary goal of Google’s Privacy Sandbox is to continue to deliver valuable consumer information that yields relevant marketing and media strategies, while protecting a user’s privacy.
How these alternatives to cookies fall short
While it’s promising to see numerous alternatives to cookies emerging, it’s essential to recognize that each alternative has its limitations and is not a perfect one-to-one replacement for third-party cookies. Let’s review the shortcomings of these alternatives, and then we’ll walk through how Experian can help you navigate these alternatives to cookies.
1. First-party data
First-party data, which is data directly collected from your users with their consent, is highly valuable. However, you will likely face limitations in terms of the number of consumers in your database, the identifiers linking them, and the insights into their demographics and behaviors. To overcome these limitations, it’s essential to expand both the quantity and quality of your first-party data.
2. Universal IDs
Universal identifiers are valuable for tracking users across different devices and websites. However, no single universal identifier has enough reach to fully replace third-party cookies. Universal IDs are most effective in terms of scaling, when they are combined with other universal identifiers or alternative addressable identifiers.
3. Identity graph
Identity graphs excel at connecting digital audiences. However, establishing an identity graph from scratch is a significant accomplishment, demanding expertise, financial resources, and more.
4. Contextual targeting
Contextual targeting and advertising aim to place your ads next to relevant content. However, there’s a risk that your ads might appear alongside misaligned content, reaching audiences who are uninterested or unintended.
5. Data collaboration
Data collaboration is beneficial for enhancing your consumer data and informing your strategies. However, it can introduce potential data security risks, if not done in the right framework, and may lead to subpar matching results due to issues like data hygiene or discrepancies in identifiers.
6. Google Privacy Sandbox
Google’s Privacy Sandbox aims to balance effective advertising with consumer privacy and data security. However, it lacks transparency and has yet to prove its effectiveness, raising concerns about whether it meets industry standards.
How Experian can help you navigate a cookieless world
As an industry innovator and leader in data and identity, we’ve developed solutions to address the challenges posed by the shift away from third-party cookies. Our products are designed to adapt to these changes and ensure your success. We’ve anticipated industry shifts and proactively prepared our offerings to support you through this transition. Below we outline how our products are ready to support you through the transition away from third-party cookies.
Graph
The Experian Graph facilitates connectivity without relying on cookies. Our Graph helps ensure connectivity by supporting a variety of addressable identifiers, not limited to but including universal IDs, like Unified ID 2.0 (UID2) and ID5’s universal ID. Whether you have first-party data or not, our Graph can be used to expand the reach of your first-party data or provide you with access to the full scope of our Graph’s 126 million households and 250 million individuals.
Activity Feed
Supported by our Graph, Activity Feed can help you deliver digital connectivity and resolution in a cookieless environment. Activity Feed can resolve disparate activity to a single, consumer profile. It can expand the quantity of addressable identifiers associated with your first-party consumers. Additionally, Activity Feed, by joining disparate activity and identifiers, provides clearer insights, more addressable targets, and more holistic measurement.
Our Marketing Attributes and Audiences
In a cookieless environment, our Marketing Attributes and Audiences provide valuable information and insights about who your consumers are, like their demographics, shopping patterns, and more, to facilitate more informed decision-making. You can use our Marketing Attributes and Audiences to enrich your first-party data, giving you crucial insights into your customers so you can make informed, strategic decisions. They can be matched to universal identifiers, expanding their utility. Additionally, our Marketing Attributes and Audiences are sourced from non-cookie dependent offline and digital sources, ensuring they are unimpacted by third-party cookie deprecation.
Collaboration
While third-party cookies have primarily served to connect data in the industry, many companies are turning to data collaboration in lieu of having third-party cookies. In doing so, they can connect data with key partners, which they can use to make better media decisions.
Experian Collaboration helps make data collaborations better, powering higher match rates by using the various identifiers supported in our offline and digital graphs. Through our current support of collaboration in three environments, within Experian, through crosswalks, and in clean rooms, such as AWS, InfoSum, and Snowflake, we ensure that you only share the data you intend to share, while the sensitive information remains secure. This way, your partner and you can focus on how to use the data to benefit you and not on anything else.
Get started with alternatives to third-party cookies today
While many view the deprecation of third-party cookies as disruptive, we see it as an opportunity for the industry to embrace a new era of advertising while prioritizing consumer privacy. Achieving this balance is crucial, and Experian’s solutions are here to help you navigate it effectively. As the AdTech industry gravitates toward a few tactics to effectively advertise in the cookieless future, Experian is here to understand your core needs and recommend products that will help.
In a rapidly evolving marketing landscape, Experian stands as your trusted partner, offering expertise in data-driven and identity solutions. Connect with our team to seamlessly transition into these alternatives to third-party cookies, ensuring your marketing strategies remain effective, privacy-compliant, and focused on meaningful connections.
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Q&A with John Fetto, Senior Analyst, Marketing & Research Earlier this year, Experian Marketing Services released our Cross-Device Video Analysis. The analysis has generated such strong and sustained interest from marketers and the media, we wanted to explore the subject further. The following is an exchange with the report’s lead author John Fetto who answers some common questions that we’ve received since the analysis was published. Q: In the Cross-Device Video Analysis, you report that consumers are “cutting the cord” on pay cable and satellite television services. Can you elaborate on this trend? What’s driving it? According to our research at Experian Marketing Services, U.S. consumers are increasingly likely to have high speed Internet at home but no cable or satellite TV subscription. There are two primary consumer trends driving this: 1) Households that never subscribed to a pay TV service are now upgrading to broadband Internet; 2) Households that previously subscribed to both pay TV service and broadband Internet that have since cancelled the cable or satellite TV subscription. While the vast majority of U.S. households pay for either cable or satellite TV, an estimated 15.1 million (or 12.9 percent of households) do not. That’s up from 13.5 million households (11.9 percent) who didn’t pay for TV in 2009. At the same time, the share of broadband households is also rising. Today, 72.7 million homes (61.4 percent) have broadband Internet, up from 65.0 million homes (56.9 percent) in 2009. As Americans’ Internet connection at home is increasingly fast enough to deliver high quality video content through sites like YouTube, Netflix, Hulu and the like, as well as the ability to consume that online video content across an array of devices ranging from Internet-connected televisions to smartphones and tablets to computers, they are increasingly questioning whether they need to continue paying for TV. And more and more consumers are deciding to cut the cord. Q: With more consumers cutting the cord, how are they consuming video content? While the most commonly used device to consume online video is the smartphone — used by 24 percent of adults during a typical week to watch online video, according to our research — “cord cutters” are primarily using Internet-connected TV to consume online video. In fact, an adult who watches online video on their TV is 3.2 times more likely than the average adult to be a cord-cutter. This means that the Internet-connected TV market is critical in predicting the future of the cord-cutting consumer. As existing devices like Apple TV, Chromecast and Roku are upgraded and new devices like Amazon Fire TV are introduced to the market, consumers will have more and more options to consume online video without sacrificing quality or screen size. As a result, more consumers will be reconsidering whether they need to continue paying for TV. Q: What percent of consumers get their television programming from various sources including cable, satellite, online streaming and free over the air TV? Combined, 87.1 percent of U.S. households subscribe to either cable or satellite TV. While Experian Marketing Services doesn’t specifically measure the percent of Americans who watch TV through an over the air feed (OTA) we know that among those who do not subscribe to cable or satellite, the vast majority (77 percent) still watch TV. And while it’s possible that some are viewing TV from a cable or satellite feed away from home, the most likely source of their TV content would be from OTA sources. That means that at least 10 percent of American adults are watching some TV through an OTA feed. In addition, 48 percent of all adults watch online video each week through a variety of devices. Those who don’t pay for TV are 12 percent more likely than those who have cable or satellite TV to watch online video (54 percent vs 48 percent). Q: The cord-cutting trend has many implications for the cable and satellite companies, but what do consumer-facing marketers and advertisers need to know about this trend? The growth in online video viewing creates many opportunities for marketers. Online audiences can be more easily targeted and served up advertising that is more relevant, responsive and measureable. Marketers can also be more confident that their online ad was actually seen, given that viewers are typically unable to skip ads. And while CPMs for online video ads may generally be lower than those of TV, marketers can use that savings to negotiate costs based on clicks or transactions rather than impressions, giving them a better picture into audience interest and insights to inform their budget allocation. Millennials are the most device “agnostic,” with more than one-third saying they don’t mind watching video on a portable device even if it means a smaller screen. That’s more than double the rate of those ages 35 and older. This decentralized viewing can create headaches for marketers who need to start a relationship with Millennials during this stage of their lives when they’re most open to trying out new brands and have yet to settle down. On the plus side, marketers who do manage to reach this audience will find them much more open to advertising than average. In fact, Millennials are more than four times more likely to say that video ads that they view on their cell phone are useful. So while the challenge is big, so is the potential reward. Download the full analysis to learn more about: Cross-device video behaviors to optimize media mix approach The impact of the growing trend in cord-cutters The rising influence of Internet-connected TV How to get more impact from video content
School may be out for the summer, but this is the perfect time for marketers to begin back-to-school planning. Follow these five simple tips and be on your way to back-to-school success. Searchers are actively seeking out ideas around clothes, hairstyles and dorm room décor as they prepare for the school year to start. Leverage sites like Pinterest to promote back to school merchandise and content. Don’t forget to include DIY and customization options as these appeal to today’s students. Don’t underestimate the influence of moms and college students. These consumers are more likely to actively search for the best deals online so test using deal-seeking terms like “free” and “sales” in promotional campaigns. In 2013, Marketers experienced a 35 percent lift in unique clicks when they used the word ‘college’ in the subject line. This year, try targeting specific ages for back-to-school by including terms like “college” and kids” in the subject line. Timing of back-to-school campaigns matters. While August is the key month for back-to-school campaigns, there may be more opportunity to mail additional campaigns for school supplies in July, and clothing and accessories in early September. Don’t forget to personalize! Last year, we saw a 44 percent increase in unique open rates for emails that contained personalization in the subject line. These tactics should be included in a strong back-to-school mailing program. For more information on back-to-school planning, download the 5 Lessons for Back-to-school Marketers in 2014 report.
Experian Marketing Services conducted an analysis into the attitudes, language preferences, spending habits and media behaviors of Hispanic Consumers, some of which were featured in the 2014 Hispanic Market Overview presented by López Negrete Communications. This post highlights findings from that analysis, which focus on Hispanic consumers’ adoption and use of smartphones. Hispanic consumers, who today account for 15 percent of the total U.S. adult population and 22 percent of Millennials, represent an ideal audience for mobile engagement and mobile advertising. While cell phone ownership rates among Hispanic and non-Hispanic adults are equal, Hispanics are more likely to own a smartphone and use it as their primary device to connect to the Internet. According to the latest estimates from Experian Marketing Services, 63 percent of Hispanic adults own a smartphone versus 60 percent of non-Hispanics. That’s up from 52 percent and 51 percent, respectively, since 2012. Among smartphone owners, Hispanics are 17 percent more likely than non-Hispanics to say that they access the Internet more through their phone than through a computer. In fact, 45 percent of Hispanic smartphone owners are mobile-dominant when it comes to going online compared with 38 percent of non-Hispanics. Marketers courting the influential Hispanic consumer must consider this fact and take a mobile-first approach to ensure that online marketing efforts, including everything from email to websites to e-commerce, are designed to engage the customer as effectively on a mobile device as on a computer. Even traditional marketing tactics such as television ads should reflect the growing likelihood that Hispanics have a smartphone either nearby or physically in their hand and are ready to engage. In fact, 37 percent of all Hispanic adults say that they often use their cell phone while watching television compared with 29 percent of non-Hispanics. Among smartphone owners, the share of Hispanics who use their phone while watching television shoots up to 50 percent versus 42 percent of non-Hispanics. Millennial smartphone owners are among the most likely to be splitting their attention between the big and small screen with 61 percent of Hispanic Millennials and 58 percent of non-Hispanic Millennials doing so. Knowing what specific mobile activities Hispanics are engaging in is critical for marketers in identifying the best tactics for reaching them via mobile. The chart below shows that Hispanics engage in most smartphone activities at above average rates, but they are much more likely than non-Hispanics to IM/chat on their phone. As a result they are slightly less likely than non-Hispanics to email from their phone, though the vast majority of Hispanic smartphone owners still use mobile email. Other activities that marketers will find Hispanics engaging in at above average rates include watching videos, using mobile GPS and listening to music. Learn more about how Experian Marketing Services can help your organization more effectively target, reach and engage today’s Hispanic consumer.