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Cookieless: new marketing strategies

Cookieless: new marketing strategies

8minAug 19, 2024Last updated on Sep 24, 2024

Alexandra Augusti

Alexandra Augusti

Strategy & Operations Manager

With the announcement from various browsers to eliminate third-party cookies, a major shift is underway in digital marketing. Although Google Chrome reversed its decision by canceling the removal of third-party cookies, this doesn't necessarily mean that third-party cookies represent a sustainable future for digital marketing. Third-party cookies, generally used for targeting purposes, can no longer be the sole method for conducting marketing.

The move towards a “cookieless” environment isn't new and stems from the growing demand for greater privacy and respect for user consent online.

The various restrictions on third-party cookies raise essential questions:

How can we continue to offer a personalized experience that respects users' privacy?

👉🏼 In this article, we will explore the existing alternatives to ensure a successful transition to an era of effective digital advertising without compromising privacy, addressing the challenges of the cookieless environment.

The gradual end of the third-party cookie era

As the web has evolved, third-party cookies have played a significant role in the world of digital marketing. These small scripts, placed on your devices by entities you haven't directly visited, allow advertisers to personalize ads based on your browsing habits, interests, geographic location, or purchase history. For example, when reading an article on a news site, it’s common for a third-party cookie to be used by an advertiser to target their ads.

How third-party cookies work: Third-party cookies are used to track online behavior and retarget customers. If someone sees an article on a site A, leave that website and surf the web, it's very likely that he sees an ads for this specific article on a site B.

Third-party cookies are used to track online behavior and retarget customers

However, the use of these third-party cookies raises significant concerns regarding privacy protection as they enable tracking of a person's browsing across different sites. Additionally, they collect personal information, posing risks to individual freedom and security.

In light of these concerns, the web industry is moving towards limiting or even eliminating third-party cookies.

Here are the key moments marking this shift:

  • In 2010, the first ad blockers appeared, preventing the installation of third-party cookies on users' devices.

  • In 2017, Apple introduced its Intelligent Tracking Prevention (ITP) system on Safari, limiting access to third-party cookies and reducing their lifespan to 24 hours. As a result, retargeting was time-limited, making it difficult to identify a user returning to a site within a few days. Since 2020, Apple blocks all third-party cookies by default.

  • In 2019, Mozilla followed suit with the default blocking of third-party cookies in Firefox, emphasizing user privacy protection.

  • In 2020, Google announced its plan to eliminate third-party cookies on Chrome, the market-dominant browser, by 2022. The company then introduced its Privacy Sandbox, an initiative aimed at replacing third-party cookies with more privacy-friendly solutions through anonymous user groups and contextual signals. Various delays have pushed this deadline to 2025. However, in July 2024, under pressure from various criticisms and uncertainties surrounding the Privacy Sandbox, Google decided to cancel this decision but still proposed using cookieless solutions from its new initiative.

Third party cookies have been threaten since 2016 (with the GDPR adoption). Many regulations and browsers announcements have impacted the data marketing ecosystem since then (ITP, CCPA, end of 3rd party cookies on Safari and Firefox, CNIL, etc.)

Timeline: how third-party cookies are scrambling

The inherent limits of using cookies for advertising

While the decline of third-party cookies appears to be a challenge for advertisers, it’s important to note that these same cookies already revealed certain limitations in the advertising context. Indeed, third-party cookies are not without flaws and did not guarantee an optimal advertising strategy that respected users.

Here’s an overview of the main disadvantages associated with third-party cookies:

  • Third-party cookies are not suitable for multi-device use: They do not inherently allow tracking a user across different devices (PC, smartphone, tablet...), complicating the tracking of customer journeys and the attribution of advertising conversions.

    💡 Note that if a person is logged into the same account on different devices, reconciliation is still possible.

  • Third-party cookies can be easily blocked or deleted: Users can resort to ad blockers, incognito mode browsers, or modify privacy settings to prevent the installation of third-party cookies on their browser, reducing the reach and accuracy of ad campaigns.

  • Third-party cookies negatively impact website performance: Requiring additional network requests, third-party cookies increase page load times, potentially harming user experience and SEO rankings of websites.

  • Third-party cookies are not under the control of advertisers: As they belong to advertising platforms, third-party cookies reduce advertisers' ability to directly control their data, forcing them to rely on intermediaries for targeting and campaign performance analysis. Therefore, they cannot directly choose whom to target in their media strategies and are subject to the decisions of advertising giants.

We are thus witnessing a gradual shift on the web towards a model without third-party cookies, disrupting long-standing practices in digital marketing. Google's announcement doesn’t change this, as both users (through ad blockers and consent) and other browsers are blocking third-party cookies.

In a way, third-party cookies were not the panacea for online marketing, and their disappearance can be seen by advertisers as an opportunity to rethink their strategies in favor of more effective and ethical alternatives.

So, what are the cookieless alternatives, and how can they be adopted?

👉🏼 We will explore these questions in the following sections of this article.

What are the alternatives to third-party cookies?

With the gradual decline in the use of third-party cookies, marketing professionals, publishers, and advertising platforms are compelled to seek alternative means to continue offering targeted, personalized, and effective advertising. Several solutions are available, each with its own advantages and challenges.

If you need a more detailed content, do not hesitate to download our complete guide to third-party cookies!

👇

2024 complete guide to third party cookies

Personalized Targeting Without Cookies

This method aims to identify users without relying on third-party cookies, using other techniques such as fingerprinting, authentication, universal IDs, or cross-site IDs. These techniques facilitate recognizing a user across different sites or devices and allow them to be served ads that match their profile and behavior.

However, it’s important to note that these strategies raise significant privacy concerns, as they involve collecting personal data without explicit user consent and may be challenged by regulatory actions or browser settings.

Cohort Targeting

Cohort targeting groups users based on shared traits or interests without individually identifying them. This allows targeting market segments while preserving individuals' anonymity. Google’s Privacy Sandbox is a notable example, aiming to replace third-party cookies with technologies based on anonymous user groups and contextual signals.

Despite its potential, this method is still in the testing phase and raises questions about its effectiveness and impact on competition.

Contextual Targeting

Contextual targeting selects ads based on the content of the site visited by the user without using personal data. This approach ensures that ads align with the content viewed by the user, thus respecting their privacy. Although an older method, it’s regaining popularity in the face of third-party cookies' obsolescence.

However, it does not consider users' specific preferences or intentions, which can reduce its effectiveness compared to personalized targeting.

First-Party Data Collection with Advertising Platforms

This approach involves directly collecting user data through their consent, then transmitting it to advertising platforms for personalized ad targeting. First-party data, obtained directly by the site or application visited by the user, offers higher quality, precision, and privacy compared to third-party data.

However, this strategy requires a rich and qualified database, as well as compliance with data protection regulations.

Using First-Party Data in Advertising Platforms

Collecting data is crucial for better understanding your customers and determining which marketing strategies to implement... But it’s even better to use this data directly in advertising platforms!

For this purpose, most media platforms have developed Conversion APIs, allowing the transmission of any event data. This makes it possible to share 100% of the information (online and offline) with media platforms, optimizing advertising algorithms.

First-party data strategies can help you save a lot of marketing budget!
👇Take the test!

First-party data for better performances

Innovative new measurement methods

Third-party cookies were also used to measure the performance of marketing campaigns. New cookieless measurement methods are emerging today as essential solutions.

These approaches rely on advanced tools and statistical models to assess campaign effectiveness. For example, Marketing Mix Modeling (MMM) stands out by offering the ability to analyze the impact of various marketing channels on sales using aggregated and historical data.

Marketing Mix Modeling: detailed steps

This method, effective for calculating the return on investment (ROI) of advertising efforts, is also valuable for optimizing budget allocation. However, it has certain limitations, such as its inability to measure short-term campaign effectiveness and to capture individual consumer journeys.

In a nutshell

The imminent end of the third-party cookie era is a reality (despite Google's announcement!) that the digital world has been grappling with for some time, and this transformation is intensifying as major browsers gradually eliminate these trackers.

Advertisers are now compelled to reinvent personalized advertising methods to remain effective without infringing on users' privacy. Several strategies are emerging as alternatives to third-party cookies, including personalized targeting without cookies, cohort targeting, contextual targeting, injecting first-party data directly into platforms, and adopting new measurement approaches.

DinMo helps you activate your first-party data across all your marketing destinations to succeed in a cookieless world. Feel free to contact us to learn more!

About the authors

Alexandra Augusti

Alexandra Augusti

Strategy & Operations Manager

A graduate of CentraleSupélec and ESSEC Business School, Alexandra is a data specialists. She worked as Data Marketing Consultant at M13h, where she assisted several companies in leveraging their internal data by creating dedicated platforms. In her role at DinMo, Alexandra optimizes our business operations and works closely with our CEO to provide strategic insights that will help each team bring their A-game.

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Table of content

  • The gradual end of the third-party cookie era
  • The inherent limits of using cookies for advertising
  • What are the alternatives to third-party cookies?
  • In a nutshell

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