Whilst Google has confirmed it is delaying the deprecation of 3rd party cookies from Chrome, by the time 2024 comes around this will be the final nail in the cookie-coffin rather than the beginning of the end. For a long time, consumer trust has eroded due to data leaks and murky practices by bad actors, and the likes of Apple and Firefox have led in this area for some time now. However, there is no doubt that the demise of the third-party cookie will impact all businesses across the digital advertising spectrum. Unfortunately, premium publishers will be hugely affected by these policy changes. At the same time, they have minimal control over what the changes are and when they’ll come into effect.
We recently surveyed our publisher partners, of which 419 participated from all over the world. The results offer a fascinating look at where we stand on the cookieless future, halfway through 2021. After the survey, I hosted a panel session with some of our participating publishers and technology partners, to hear from them about their plans for the cookieless world and how they’re preparing for the shift. The esteemed panel comprised of:
- Jana Meron, SVP Programmatic & Data Strategy, Insider
- Daniel Papalia, VP Programmatic Revenue & Strategy, Dotdash
- Aly Nurmohamed, General Manager, Permutive
- Jason White, SVP Head of Publishers, Liveramp
You can watch the panel below:
Learning how to adapt
Significantly from the survey, more than 50% of publishers said they were unclear as to how new cookieless identity solutions would impact their business models.
A good deal of weight and attention has been placed behind unique ID solutions, namely Unified ID 2.0 spearheaded by The Trade Desk and Liveramp’s Identity Link. Thus, it’s no surprise that they are seen as potential ways forward to solve the issue. In our survey, almost half (47%) of those considering adopting logins indicated their intent to work with one of these two solutions.
But, given the high volume of interest given to first-party data solutions, it’s more surprising that 65.3% of respondents said they were not planning on increasing usage of logins to specifically combat deprecation of third-party cookies. This is predominantly due to the potential disruption of user experience for readers as logins could negatively impact site traffic.
Not flocking to FLoC
Google’s Federated Learning of Cohorts (FLoC) claims to give advertisers the ability to target groups of users without giving away identity information. It does this by placing users within cohorts according to their interests. However, this will only be available within Google’s Chrome browser. It has a significant market share but is by no means comprehensive. Publishers are also still uncertain how it will work in practice.
At least Google has started work on the technical details of its Privacy Sandbox model. However, other key browsers such as Safari and Firefox have yet to announce their plans. When it comes to these Privacy Sandbox solutions, the approach for publishers and advertisers should be the same. A cookieless tool to be included in the mix rather than treated as the basis for a whole strategy.
Technical details and dominance
The devil will be in the details with FLoC. But the key concern is that such an update will be limited to the open web and give Google further competitive advantages in market. Publishers haven’t had the easiest ride in monetizing premium editorial content. So, it’s critical they are supported in ensuring precise targeting isn’t only possible within walled gardens.
Unfortunately, many publishers are choosing to play a waiting game to see what further privacy protocols will be introduced and, therefore, which targeting options remain and are viable solutions for advertisers. This leaves the industry heavily reliant on – and beholden to – updates from the tech giants. Our survey results reflect the lack of clarity that publishers already face when it comes to these potential new solutions. Just 23.7% say that they fully understand the implications of the various industry initiatives.
With such uncertainty and lack of transparency, how can publishers get ready for the cookie-less future that is fast approaching?
Change your targeting perspective
While criticism can be levelled at the lack of transparency for these updates, we must remember that a privacy-focused internet is what users, and government regulators, are asking for. So, relying on a single, one-size-fits-all solution isn’t a good long-term strategy for anyone in digital.
The credibility and feasibility of multiple approaches will need to be understood, tested, and combined to maintain the same levels of ad effectiveness. Publishers will need to stay aligned to various industry initiatives as they evolve, which takes deep technical knowledge and resources. Most of the cookie-based replacements are unavailable to all, and worse than that, are not testable yet, and time is running out.
Consider critical context
Whatever happens though, there is no doubt that publishers need answers to be fully ready for 2024 when third-party cookies will take their final bow. Publishers will need support from monetization partners and advertisers alike to find the right balance. It is essential to run concreate tests with partners that offer actionable – and not theoretical – cookieless monetization capabilities. This is critical in order develop reliable revenue streams. It’s not enough just to be ready for the death of the cookie. Publishers need to be positioned to profit within a privacy-first ecosystem for many years to come.