Who doesn't love cookies, right?! Well, it depends on what kind of cookies you're talking about. Most users across the internet don't fully understand what it means when they navigate to a website and the inevitable "Allow Cookies" window pops up. Let me explain.
First of all, why do I have the authority to talk about cookies? For one thing, I worked as a programmatic buyer for four years before joining the team at Spaceback.
It's always been a fun conversation to try to explain to my family what it is I do for work. No, we don't "listen" to what you say and serve you ads because we're inside your phones; that's where cookies come into play!
But what is a cookie? A cookie is a small piece of code placed on websites designed to track users' behavior across the web, making the ads each individual is served relevant to their interests.
However, if you work anywhere in the digital advertising space, you're all too familiar with the topic of phasing out these tiny pieces of code. Google first announced it would be deprecating the third-party cookie back in 2021. It's now the beginning of 2024, and we had more time utilizing third-party cookies than we expected! But according to Google's most recent reports, the cookie phase out will begin as early as tomorrow.
For digital advertisers, this might seem scary. One may think, "how am I going to spend my media dollars meaningfully in order to target the people most interested in my product without cookies?!" Well, fear not! There are plenty of other routes advertisers are going to have to lean into to keep their advertising effective while still respecting users' privacy.
One of the biggest alternatives is leaning into first-party data, meaning relying on data collected directly from users interacting with a brand's site or services. This means things like subscription data, transactional data, and survey data; essentially, first-party data is any data gathered when a user submits personal information to a brand. This includes name, email, phone number, address, etc. that users are prompted to include when making an online purchase. Brands are able to then encrypt this data and distribute it out to DSPs through direct uploads or third-party partners like LiveRamp. Advertisers will then use that data for targeting and retargeting in their campaigns.
In my previous role, I ran a campaign for a client who was focused on online subscriptions and utilized the brand's first-party data to create lookalike audiences of active subscribers, as well as retargeting lapsed subscribers in a WinBack effort, using copy like "we miss you" and "former customer exclusive" to encourage them to re-engage with the brand. We also leaned into FOMO messaging specifically for previous subscribers. Tailoring messaging to the specific audience groups advertisers are reaching will help curate the most meaningful experience for users while still maintaining their privacy.
Another route that will no doubt become more common is the use of contextual targeting, focusing on content rather than individual browsing history. An example of this would be a shoe brand serving ads on websites that include pictures, text, or content that aligns with what a person in-market for shoes would be browsing, i.e. fashion sites, retail brands, influencer blogs, etc.
Advertisers will need to lean on creative a bit more heavily with the deprecation of cookies as well. Developing engaging, meaningful, and valuable content that doesn't rely on tracking individuals will become a priority.
Although the phase-out of cookies is going to be gradual, advertisers and brands should start thinking about their alternative approaches to media campaigns without cookies (like first-party data or contextual advertising!). Since Google announce that by the end of 2024, the cookie will be completely obsolete, it's best to get ahead and start testing different methods as we head into the new normal or digital advertising!
