The cookieless future is here, and it’s time to start thinking about how you will adapt your strategies to this new reality. In a cookieless world, you will need to find new ways to identify and track users across devices. This will require reliance on first-party data, contextual advertising, and alternative identifiers that respect user privacy.
To shed light on this topic, we hosted a panel discussion at Cannes, featuring industry leaders from Cint, Direct Digital Holdings, the IAB, MiQ, Tatari, and Experian.
In this blog post, we’ll explore the future of identity in cookieless advertising. We’ll discuss the challenges and opportunities that this new era presents, and we’ll offer our tips for how to stay ahead of the curve.
How cookieless advertising is evolving
Programmatic advertising is experiencing multiple changes. Let’s dive into three key things you should know.
Cookie deprecation
One significant change is cookie deprecation, which has implications for tracking and targeting. Additionally, understanding the concept of Return on Advertising Spend (ROAS) is becoming increasingly crucial.
The demand and supply-side are coming closer together
Demand-side platforms (DSPs) and supply-side platforms (SSPs) have traditionally been seen as two separate entities. DSPs are used by advertisers to buy ad space, while SSPs are used by publishers to sell ad space. However, in recent years, there has been a trend toward the two sides coming closer together.
This is due to three key factors:
The rise of header bidding
Header bidding is a process where publishers sell their ad space to multiple buyers in a single auction. This allows publishers to get the best possible price for their ad space, and it also allows advertisers to target their ads more effectively.
Cookie deprecation
As third-party cookies are phased out, advertisers need to find new ways to track users, and they are turning to SSPs for help. SSPs can provide advertisers with data about users, such as their demographics and interests. This data can be used to target ads more effectively.
The increasing importance of data
Advertisers are increasingly looking for ways to target their ads more effectively, and they need data to do this. SSPs have access to a wealth of user data, and they’re willing to share this data with advertisers. This is helping to bridge the gap between the two sides.
The trend toward the demand-side and supply-side coming closer together is good news for advertisers and publishers. It means that they can work together to deliver more relevant ads to their users.
Measuring and tracking diverse types of media
The media measurement landscape is rapidly evolving to accommodate new types of media, such as digital out-of-home (DOOH). With ad inventory expanding comes the challenge of establishing identities and connecting them with what advertisers and agencies want to track.
Measurement providers are now being asked to accurately capture instances when individuals are exposed to advertisements at a bus stop in New York City, for example, and tracking their journey and purchase decisions, such as buying a Pepsi.
To navigate cookieless advertising and measurement, we must prioritize building a strong foundational identity framework.
What you should focus on in a cookieless advertising era
In a cookieless advertising era, you will need to focus on two key things: frequency capping and authentic identity.
Frequency capping
Frequency capping is a practice of limiting the number of times an ad is shown to a user. This is important in cookieless advertising because it helps to prevent users from being bombarded with ads. It also helps to ensure that ads are more effective, as users are less likely to ignore or click on ads that they have seen too many times.
Frequency capping is often overhyped and yet overlooked. Instead of solely focusing on frequency, consider approaching it from an identity perspective. One solution could be to achieve a perfect balance between reaching a wider audience and avoiding excessive repetition. By increasing reach in every programmatic buy, you naturally mitigate frequency control concerns.
Authentic identity
The need for authentic identities in a digital and programmatic ecosystem is undeniable. While we explore ways to connect cookies, mobile ads, and other elements, it’s crucial to remember who we are as real individuals. By using anonymized personal identifying information (PII) as a foundation, we can derive insights about households and individuals and set effective frequency caps across different channels.
Don’t solely focus on devices and behaviors in your cookieless advertising strategy and remember the true value of people and their identities.
What’s next for cookieless advertising?
The deprecation of third-party cookies is a major challenge for the digital advertising industry. Advertisers will need to find new ways to track users and target their ads.
Here are three specific trends that we can expect to see in cookieless advertising.
First-party data is moving in-house
Many major media companies, equipped with valuable identifier and first-party data, are choosing to bring it in-house. They are focused on using their data internally rather than sharing it externally.
“Many larger media companies are opting to bring their identifier and first-party data in-house, creating more walled gardens. It seems that companies are prioritizing data control within their own walls instead of sharing it externally.”
laura manning, svp, measurement, cint
Fragmentation will continue
The number of identifiers used to track people online is growing rapidly. In an average household, over a 60-day period, there are 22 different identifiers present. This number is only going to increase as we move away from cookies and toward other identifiers.
This fragmentation makes it difficult to track people accurately and deliver targeted advertising. This means that we need new identity solutions that can help make sense of these new identifiers and provide a more accurate view of people.
A portfolio of solutions will address signal loss
Advertisers are taking a variety of approaches to cookieless advertising. A few of the solutions include:
- Working with alternative IDs.This refers to using alternative identifiers to cookies, such as mobile device IDs or email addresses. These identifiers can be used to track people across different websites and devices, even without cookies.
- Working with data index at a geo level. This refers to using data from a third-party provider to get a better understanding of people’s location. This information can be used to target ads more effectively.
- Working with publisher first-party data that’s been aggregated to a cohort level. This refers to using data that is collected directly from publishers, such as website traffic data or purchase history. This data can be used to create more personalized ads.
- Working with contextual solutions. This refers to using contextual data, such as the content of a website or the weather, to target ads. This can help to ensure that ads are relevant to the user’s interests.
“Cookie deprecation is often exaggerated, and alternate solutions are already emerging. As data moves closer to publishers and first-party data gains prominence, the industry will adapt to the changes.”
mark walker, ceo, direct digital holdings
There is no one-size-fits-all solution for cookies, and you will need to be flexible and adopt a variety of different approaches.
How will these solutions work together?
You can take a waterfall approach to cookieless advertising. A waterfall approach is a process where advertisers bid on ad impressions in sequential order. The first advertiser to meet the minimum bid price wins the impression.
In the context of cookieless advertising, a waterfall approach can be used to prioritize different targeting signals. For example, you might start by bidding on impressions that have a Ramp ID, then move on to impressions that have a geo-contextual signal, and finally bid on impressions that have no signal at all.
This is a flexible approach that can be adapted to different needs and budgets.
Watch our Cannes panel for more on cookieless advertising
We hosted a panel in Cannes that covered the future of identity in cookieless advertising. Check out the full recording below to hear what leaders from Cint, Direct Digital Holdings, the IAB, MiQ, Tatari, and Experian had to say.
Check out more Cannes content:
- Our key takeaways from Cannes Lions 2023
- Insights from a first-time attendee
- Four new marketing strategies for 2023
- Exploring the opportunities in streaming TV advertising
- Maximize ad targeting with supply-side advertising
Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing.
Latest posts
In a perfect world, we’d all have a single, go-to grocery store that carried everything on our shopping list – fresh produce, gourmet coffee beans, rare spices, and maybe even that special-grade olive oil, right alongside our wholesale bulk purchases at unbeatable prices. It would be convenient and efficient, and it’d save a lot of driving around town. The changing data marketplace: From one-stop shop to specialized selection For a long time, data buyers enjoyed something similar in their world: a small set of large-scale data marketplaces that offered a wide array of audiences, making it easy to load up on whatever you needed in one place. Not only are there fewer places to pick everything up, but new factors like privacy and signal deprecation are placing a spotlight on quality and addressability. Just as our dinner plans are growing more ambitious insofar as we want health, flavor, value, and convenience all in one place – so are our data strategies. Instead of a single steak-and-potatoes meal, today’s data marketplace operators might be cooking up a complex menu of campaigns. “Experian has been a longstanding partner of DISH Media, and we’re excited to be an early adopter of their marketplace which leverages the foundation of their identity solutions to ensure maximum cross-channel reach as we look to expand the breadth and depth of data we use for addressable TV.”Kemal Bokhari, Head of Data, Measurement & Analytics, DISH Media As a result, data buyers are beginning to shop around. Some still rely on large-scale marketplaces for familiar staples, but now they have reasons to explore other options. Some are turning to providers known for offering top-tier, transparently sourced segments. Others are focusing on specialty providers that excel in one area. A more selective approach to data buying In this environment, choosing where to “shop” for data is becoming more deliberate and selective. Data buyers aren’t just thinking about broad scale; they’re looking to prioritize quality, durability, data privacy, and differentiation. They need to place higher value on data marketplaces that can maintain audience addressability over time, despite signal loss. Sometimes, that means accepting a smaller assortment in exchange for tighter vetting and more reliable targeting. Other times it means mixing and matching – stopping by one marketplace for premium segments and another for cost-friendly, wide-reaching data sets. Either way, they can benefit from having more choices. “Experian has been a longstanding partner of DISH Media, and we’re excited to be an early adopter of their marketplace which leverages the foundation of their identity solutions to ensure maximum cross-channel reach as we look to expand the breadth and depth of data we use for addressable TV.”Kemal Bokhari, Head of Data, Measurement & Analytics, DISH Media Experian’s marketplace: A trusted source for high-quality data Experian’s vetted and curated blend of data partners and vertically-aligned audiences offers a trusted specialty store for data buyers. Experian’s marketplace, powered by identity graphs that include 126 million households, 250 million individuals, and 4 billion active digital IDs, enables partner audiences to be easily activated and maintain high addressability across display, mobile, and connected TV (CTV) channels. In particular, Experian’s marketplace provides: Enhanced addressability and match rates All audiences delivered from the marketplace benefit from our best-in-class offline and digital identity graphs, which ensure addressability across all channels like display, mobile, and CTV. Unlike other data marketplaces, Experian ensures all identifiers associated with an audience have been active and are targetable, improving the accuracy of audience planning. Enhanced addressability and match rates All audiences delivered from the marketplace benefit from our best-in-class offline and digital identity graphs, which ensure addressability across all channels like display, mobile, and CTV. Unlike other data marketplaces, Experian ensures all identifiers associated with an audience have been active and are targetable, improving the accuracy of audience planning. Enhanced addressability and match rates All audiences delivered from the marketplace benefit from our best-in-class offline and digital identity graphs, which ensure addressability across all channels like display, mobile, and CTV. Unlike other data marketplaces, Experian ensures all identifiers associated with an audience have been active and are targetable, improving the accuracy of audience planning. The future of data marketplaces: Precision and flexibility matter The evolution of data marketplaces reflects the industry\’s shifting priorities. Data buyers seek specificity, reliability, and adaptability to align with their diverse campaign needs. The best data strategy, much like the best grocery run, isn’t about grabbing everything in one place – it’s about carefully selecting the right ingredients to create the perfect recipe for success. This shift underscores the importance of flexibility and precision as data buyers navigate a landscape shaped by privacy regulations, signal loss, and evolving consumer expectations. As data marketplaces adapt to meet these demands, they are redefining what it means to deliver value. Experian’s marketplace enables buyers to strike the perfect balance between reach and quality by offering enhanced match rates, precise audience planning, and seamless distribution. In this new era, data buyers have the tools and options to craft campaigns that are impactful and aligned with the increasingly selective and privacy-conscious digital landscape. The key is recognizing that today’s data strategy is about utilizing the strengths of many to create a cohesive and effective whole. If you\’re interested in learning more about Experian\’s marketplace or becoming an active buyer or seller in our marketplace, please contact us. Contact us Latest posts