Understanding the End of Third-Party Cookies

The digital advertising realm is evolving at an incredible pace, and the anticipated loss of third-party cookies is one of the most significant changes on the horizon. Third-party cookies are data files that are stored on a user’s browser by websites other than the one the user is currently visiting, which enables advertisers to target users with relevant ads. However, due to concerns over user privacy, major browsers are phasing out third-party cookies. So, what can advertisers and publishers do to mitigate the loss of third-party cookies and continue reaching your target audience?

It’s crucial to comprehend the significance of cookies in digital advertising. Third-party cookies have been a critical tool for advertisers to track user behavior, understand their interests, and deliver relevant ads. Without third-party cookies, advertisers may have to rely on less precise methods of targeting, such as targeting based on IP address or device type, leading to less effective advertising campaigns and wasted ad spend.

Thankfully, there are ways that agencies and companies can mitigate the impact of the loss of third-party cookies and continue to thrive in their digital advertising campaigns.

Collecting first-party data is more important than ever before. First-party data is data that you collect directly from your customers, such as email addresses, purchase history, and website behavior including retargeting strategies. By collecting this data, you can gain a better understanding of your customers and create personalized experiences that resonate with them. Here are some ways you can collect first-party data:

• Offer incentives for customers to sign up for your email list
• Use quizzes or surveys to gather information about your customers’ preferences and interests
• Encourage customers to create accounts on your website to track their purchases and preferences
• Implement a loyalty program to reward customers for their repeat business

Building direct relationships with your customers allows you to create a more loyal customer base and deliver more relevant advertising.

Contextual advertising involves targeting users based on the context of the content they are consuming. For instance, if a user is reading an article about fitness, a fitness brand could display their ads on that page. By targeting users in this way, you can still reach your target audience without relying on third-party cookies. Here are some tips for effective contextual advertising:

• Use relevant keywords to target users on specific pages
• Use negative keywords to exclude irrelevant pages from your targeting
• Test different ad formats and placements to see what works best for your audience

Contextual advertising can be just as effective as targeted advertising, and it can even help improve brand awareness by placing your ads in relevant contexts.

Connected TV advertising, which delivers ads to users through streaming services like Hulu and Netflix, is an example of a new advertising platform that does not rely on third-party cookies. These platforms are gaining popularity and offer a unique opportunity to reach users in a privacy-compliant way. Here are some other new advertising platforms to consider:

• Audio advertising on platforms like Spotify and Pandora
• Social media advertising on platforms like TikTok and Instagram
• Influencer marketing on platforms like YouTube and Twitch

By exploring new advertising platforms, you can find new ways to reach your target audience and stay ahead of the competition.

Some demand side platforms like Simplifi have begun to work on in-house solutions to better manage this loss of visibility from cookies. Some options include using multiple layers of information points to build proprietary identity level graphs from the most trusted sources in the industry. Relying on multiple different platforms and data points allows a more flexible approach to matching capabilities as well as mitigating any future changes that could cause a loss of visibility. This type of internally developed process also relies on machine learning to help speed the process of identifying matching characteristics as well as developing new ones for the future.

The loss of third-party cookies is a challenge for marketers and businesses, but is not insurmountable. By focusing on building direct relationships with your customers, investing in contextual advertising, and exploring new advertising platforms, you can continue to reach your target audience and succeed in your digital advertising campaigns.

At Digital Mouth Advertising, we are at the forefront of technology and understand the importance of adapting to changes in the digital advertising landscape. Contact us to learn more about how we can help you navigate these changes and continue to grow your business through effective digital advertising strategies.