What exactly are cookies and how will a cookieless future affect your ads?
Let’s start with the basics, what exactly are Cookies?
Cookies are small text files stored on users' devices by their web browsers at the request of websites. They have been used for various purposes, such as:
Tracking user behaviour across websites (third-party cookies).
Remembering user preferences and sessions (first-party cookies).
Why is the Cookieless shift happening?
The shift towards cookieless marketing is driven by increasing privacy concerns and regulatory changes. Key factors include:
Privacy Regulations: Laws like the GDPR (General Data Protection Regulation) in the EU and CCPA (California Consumer Privacy Act) in the USA require stricter consent and handling of personal data.
Browser Changes: Major browsers like Safari and Firefox have already blocked third-party cookies, and Google Chrome plans to phase them out by the end of 2024.
What is Cookieless marketing?
Cookieless marketing refers to strategies that do not rely on traditional third-party cookies for tracking and targeting users. Instead, it uses alternative methods to gather and analyse data while respecting user privacy.
Key Strategies in Cookieless Marketing
First-Party Data:
Collect data directly from your customers through interactions on your website, email sign-ups, and loyalty programs.
This data is highly valuable because it's gathered with the user's consent and is more reliable.
Contextual Targeting:
Serve ads based on the content of the web page rather than user behavior. For example, placing an ad for hiking boots on an article about mountain hiking.
Privacy-Safe Tracking:
Utilise technologies that respect user privacy, such as Google's Federated Learning of Cohorts (FLoC) or the newer Topics API, which group users into cohorts based on their interests without identifying individuals.
Server-Side Tracking:
Shift tracking responsibilities from the user's browser to your server. This helps manage and secure user data more effectively and is less susceptible to ad blockers.
Universal IDs:
Use identity solutions that aggregate and anonymise user data across different platforms, maintaining privacy while allowing for targeted advertising. Examples include Unified ID 2.0.
Customer Data Platforms (CDPs):
Implement CDPs to unify and manage customer data from multiple sources, providing a comprehensive view of your audience without relying on third-party cookies.
Benefits of Cookieless Marketing
Enhanced Privacy: Builds trust with consumers by respecting their privacy and complying with regulations.
Better Data Quality: First-party data is often more accurate and relevant than third-party data.
Future-Proofing: Adapting to a cookieless world ensures your marketing strategies remain effective as the landscape changes.
Can you still run dynamic retargeting ads on Google?
Yes, but the methods and technologies used to deliver these ads will change due to the phase-out of third-party cookies. Here's how it will work:Current Method:
Third-Party Cookies: Currently, dynamic retargeting relies heavily on third-party cookies to track users across various websites and serve personalised ads based on their browsing behaviour.
Future Method (a little bit technical):
Privacy Sandbox: Google is developing new technologies under the Privacy Sandbox initiative to replace third-party cookies while still enabling dynamic retargeting. Key components include:
FLEDGE (First Locally-Executed Decision over Groups Experiment): This framework allows for interest-based advertising without third-party cookies. It involves the browser keeping track of interest groups locally and making ad-serving decisions based on this data.
TURTLEDOVE (Two Uncorrelated Requests, Then Locally-Executed Decision): Focuses on allowing ad auctions to occur within the browser, ensuring that user data is not shared across different sites.
FLoC (Federated Learning of Cohorts): Instead of tracking individual users, FLoC groups users into cohorts based on their browsing habits. Advertisers can target these cohorts without accessing individual user data.
Practical Implications for Dynamic Retargeting:
First-Party Data: Marketers will need to rely more on first-party data collected directly from their own websites and apps. This includes user interactions, purchases, and behaviour on their own properties.
New Tools and APIs: Google Ads and other advertising platforms will provide new tools and APIs to facilitate dynamic retargeting within the new privacy framework. Advertisers will need to integrate these new solutions into their marketing strategies.
Contextual Targeting: In addition to the new Privacy Sandbox tools, contextual targeting (serving ads based on the content of the web page rather than user behavior) will become more prominent.
Steps to Prepare:
Audit First-Party Data: Ensure you are collecting comprehensive first-party data ethically and with proper user consent.
Stay Informed: Keep up to date with Google's Privacy Sandbox developments and the tools they release.
Test New Solutions: Begin testing the new APIs and technologies as they become available to adapt your retargeting strategies.
Focus on Consent: Enhance your data collection methods to ensure they comply with privacy regulations and gain explicit user consent.
Conclusion:
While the phase-out of third-party cookies will change the landscape of dynamic retargeting, Google’s Privacy Sandbox aims to provide new methods to continue these practices in a privacy-centric way.
Cookieless marketing is a shift towards more privacy-centric and user-consented data practices. By leveraging first-party data, contextual targeting, and privacy-safe technologies, marketers can continue to deliver personalised experiences while respecting user privacy.
