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
Two storied franchises will collide in this year’s Super Bowl, the Green Bay Packers and the Pittsburgh Steelers. Sports fans from both markets are huge supporters of their football teams, but a look into their behavior and attitudes reveals passions beyond a one-dimensional Cheesehead or Towel Twirler. Considering the vast preferences, marketers recognize the need to define characteristics that truly distinguish their target audience. To provide those insights, we conducted a detailed market analysis using a wide variety of data sources including research information from Experian Simmons, Hitwise, and the Mosaic Consumer Lifestyle segmentation solution, which defines the predominant household types for each area (as featured in yesterday’s post: Cheeseheads vs. Terrible Towels). Today, we delve further into the hearts and houses of Green Bay and Pittsburgh area residents. GREEN BAY FANS PACK THEM IN FOR TAILGATING Green Bay area residents are more passionate about tailgating compared to their rivals in Pittsburgh. Among those who identify themselves as NFL football fans, Green Bay fans are 1.45 times more likely than Pittsburgh fans to have participated in a tailgate party within the past 12 months. They are also better equipped to tailgate due to a higher ownership rate for midsize SUVs, and both light duty and full size pickups (Road & Track magazine top-rated picks for tailgating), compared to Pittsburgh fans. STELLA AND STEELERS GO TOGETHER With every tailgate comes a beverage of choice, and in today’s analysis we’ve found that Bud Light and Budweiser are the light/low calorie and regular domestic brands of beer favored the most by both Green Bay and Pittsburgh fans. However, Pittsburgh fans are 1.56 times more likely than Green Bay fans to down a few of premium brand, Stella Artois. Notably, along with its best selling brands, Anheuser-Busch plans to devote a portion of its multi-million dollar ad spend to this Belgian import. FANTASIZING ABOUT FOOTBALL While all that tailgating is going on, Green Bay fans might also be boasting about their latest fantasy sports selections. They are 1.34 times more likely to say that they participate in a fantasy sports league compared to Pittsburgh fans. That’s not to say that Pittsburgh fans don’t enjoy their fantasy sports, indexing above the national average for visiting fantasy sports and football websites. PLAYING IN THE GREAT OUTDOORS Packers and Steelers fans enjoy being out in the elements, so chances are you’ll probably never see a dome over either Lambeau or Heinz Field. The most popular Green Bay football fan activities, with a higher participation rate compared to Pittsburgh fans, are: golfing, camping, state fairs, hunting, power boating and motorcycling. In the Pittsburgh area, with its impressive network of recreational trails, residents are 1.23 times more likely to in-line/roller skate and are 1.36 times more likely to play hockey, compared to Green Bay. Off land analysis shows that despite Green Bay residents’ close proximity to Lake Michigan and a multitude of water sport opportunities, Pittsburgh fans are more likely to spend time on the water, namely: canoeing, kayaking, sailing, and fly fishing. THROWING DEEP VERSUS HANDING OFF Each year Super Bowl advertisers try to reach their audiences across broadly defined demographics with little ability to measure the direct impact of their super-sized investments. It’s the equivalent of throwing a “Hail Mary” and hoping the receiver will leap above the clutter of defenders and catch the ball. Direct marketers, however, are using the behavioral and attitudinal data we’ve shared here to deliver their messages to a precisely targeted sub-audience. For marketers who want to be relevant and target accurately, this capability is the playmaker that scores a game winning touchdown every time. Click here for the full article Blog post author: Bill Schneider, VP, Experian Marketing Services. We’d love to hear your stories and how you’ve used lifestyle data. Please leave your comments or feedback below.
According to weekly trend data from Experian Simmons DataStreamSM, the number of U.S. adults paying a monthly visit to microblogging site Twitter.com has fallen during the past year by 14%. As of November 29, 2010, 8.25 million adults had made at least one visit to Twitter.com during the previous 30 days, down from 9.54 million adults who had visited the site in the 30 days prior to November 30, 2009. Does this mean the ultimate “fail whale” is lurking just over the horizon for Twitter? Not just yet. Among those who visit Twitter.com, Simmons DataStream shows that the average number of visits per month rose a relative 37% in the last year. Twitter.com visits in late November 2010, in fact, reached an average of 10.0 visits per month, up from just 7.3 visits per month the year prior. As visit frequency increased, however, the duration of the average Twitter.com session declined, suggesting visitors today are seeking more frequent quick hits, rather than spending longer periods of time reading through posts. According to Experian Hitwise, the average amount of time Twitter.com visitors spend on the site during a typical session fell to 13 minutes, 12 seconds on November 27, 2010, down from an average of 15 minutes, 12 seconds spent on the site each session on November 28, 2009. That said, Americans are still spending more time on Twitter.com than ever before. According to Experian Simmons estimates, Americans spent an estimated 2 hours and 12 minutes tweeting and reading tweets on Twitter.com in November 2010, up from 1 hour and 51 minutes spent on the site during November 2009. Swim on, fail whale, swim on. To tweet this blog post, click on the green “retweet” button at the top of this item. For more information on Simmons DataStream weekly reporting of nearly 40,000 consumer variables, visit our website.
As we ring in the New Year this week, Americans will be tossing back a few adult beverages in celebration. While alcohol consumption certainly increases around holidays and other times of celebration, many Americans imbibe year-round. So where across this great land of ours are you most likely to find adults willing and able to raise a glass (or two) and where are you most likely to be surrounded by teetotalers? Experian Simmons has the answer. Leveraging data from our SimmonsLOCAL study, we examined the drinking patterns of adults of legal drinking age in the 106 Designated Market Areas (DMAs) with populations of at least 500,000 adults age 21 and older. We then ranked those markets by the number of alcoholic beverages consumed by the average adult during a typical month. The chart below lists the DMAs that consume the most alcoholic beverages per capita in a typical month. First place goes to Boston, where the average adult of legal drinking age regularly kicks back 14.4 drinks a month. (Celebrations in Beantown are probably already underway.) Rank DMA Average drinks per month 1 Boston 14.4 2 Austin 13.8 3 Providence-New Bedford 13.4 4 Madison 13.2 4 Hartford & New Haven 13.2 6 Philadelphia 13.1 7 Chicago 13 8 Denver 12.9 9 Tallahassee-Thomasville 12.8 9 Milwaukee 12.8 11 Minneapolis-St. Paul 12.6 11 West Palm Beach-Ft. Pierce 12.6 11 Seattle-Tacoma 12.6 11 Tucson (Sierra Vista) 12.6 15 Green Bay-Appleton 12.5 16 San Diego 12.4 16 Baltimore 12.4 16 Washington, DC 12.4 16 Albany-Schenectady-Troy 12.4 20 New Orleans 12.3 20 St. Louis 12.3 20 Colorado Springs-Pueblo 12.3 23 Burlington-Plattsburgh 12.2 23 Syracuse 12.2 23 Norfolk-Portsmouth-Newport News 12.2 23 Spokane 12.2 23 Portland-Auburn 12.2 Source: Experian Simmons Adult residents of the markets listed below surely know how to have a good time-it's just unlikely to include a cocktail. The chart below lists the DMAs that consume the fewest alcoholic beverages per capita in a typical month. Residents of Chattanooga consume only 6 alcoholic beverages per month, on average, making it the least imbibing market-and probably the one that feels the best the morning after a big gathering. Rank DMA Average drinks per month 106 Chattanooga 6 105 Salt Lake City 7.2 105 Florence-Myrtle Beach 7.2 105 Charleston-Huntington 7.2 105 Tri-Cities, TN-VA 7.2 101 Knoxville 7.4 100 Lexington 7.9 99 Birmingham 8 98 Huntsville-Decatur 8.5 97 Nashville 8.9 97 Evansville 8.9 95 Paducah-Cape Girardeau-Harrisburg-Mt Vernon 9.1 94 Springfield, MO 9.2 94 Tulsa 9.2 94 Greenville-New Bern-Washington 9.2 91 Memphis 9.3 90 Greenville-Spartanburg-Asheville-Anderson 9.4 90 Jackson, MS 9.4 90 Wichita-Hutchinson Plus 9.4 86 Little Rock-Pine Bluff 9.5 86 Louisville 9.5 86 Ft. Smith-Fayetteville-Springdale-Rogers 9.5 83 Fresno-Visalia 9.6 82 Greensboro-High Point-Winston Salem 9.7 82 Roanoke-Lynchburg 9.7 Source: Experian Simmons For more information on SimmonsLOCAL's vivid reporting of consumer behaviors, attitudes, lifestyles and media consumption in 209 Designated Market Areas down to the ZIP code level, visit our website.