3 Possibilities for Cookie Depreciation and the Future of Post-Cookie Identifiers

3 Possibilities for Cookie Depreciation and the Future of Post-Cookie Identifiers

While Google’s recent press release on the deprecation of third-party cookies offered little in the way of new information, it forced the ad tech world to face the future with a bit more clarity and perspective. Google dashed any last hopes of a silver bullet with regard to unique identifiers (I now realize there was a small part of me still hoping for a browser based Ad ID), and made it clear that they would not involve themselves in any alternative, consent-based identifier framework (though it also seems that they will not obstruct such efforts). The programmatic advertising world is facing their options having heard Google’s qualifications, but for real this time.

Three core tactics present themselves as Chrome depreciates the third-party cookie.

 

1. Consent-based, Cookie-less Identifiers and Strategies

One clear path will be to use consent-based, cookie-less identifiers. Many large players in the industry are working towards these identifiers including but not limited to LiveRamp, The Trade Desk, and Lotame. These solutions seek to preserve the framework by which the Lumascape primarily transacts programmatic advertising –identity–while sourcing identity in a privacy compliant manner. While Google clarified that they will not be investing in this type of solution, these new identity products should still work, with some caveats. The size and scale of the addressable web within the scope of these new identity products remains unknown, and the big question is, what portion of the web are advertisers willing to sacrifice in order to maintain the status quo? Quite a lot, I suspect, especially upon consideration of the investments made into DMP’s, first party data, and other countless data strategies over the years.

The typical tactics of audience targeting, re-marketing, and others will continue to work in some capacity, and agencies and brands will continue to be able to communicate those identities to DSPs and down the line for execution. The scale and addressability will all just be some amount worse, as it is now compared to a year ago, and as it was a year ago compared to the year before that.

 

google chrome no cookies

 

 

2. Google’s Proposal: FLoC Buy In

Another alternative is Google’s proposed set of solutions. The Federated Learning of Cohorts (FLoC) adheres to the rigors of privacy restrictions (self-imposed or otherwise) without requiring user consent. It sounds great, but there are a few trade-offs, most of which remain murky. Google claims “that advertisers can expect to see at least 95% of the conversions per dollar spent when compared to cookie-based advertising,” but the methodology with which they came to that conclusion is not transparent. Google additionally proposed that audience creation and measurement can be accomplished using FLoC; these proposals, however, remain incomplete and subject to change. The lack of clear information and plans from Google makes FLoC difficult to plan for and invest in. No one is clear about how well it’s going to work, and how much work it will take to get it to work.

We can at least say that FLoC will be one solution among three that will make a large portion of the web semi-addressable, with “semi” being a flexible and unknown qualifier for some time. Another large portion of the web (everything but Chrome) will remain non-addressable.

 

3. Just Let All These Post-Cookie Identifiers Go

While staring down the prospects of unique identity and FLoC in the future, one must ask, is it really worth it? Have we strayed too far from the light? Are all these sacrifices and efforts worth hanging on to whatever scraps are left of addressable programmatic media?

Each will have to answer that question for themselves; however, we can say that with a combination of intelligent contextual targeting with aggressive optimization based on non-identity signals, audience targeted programmatic does not have a monopoly on digital performance marketing. In fact, in the grand scheme of targetable audiences that exist in the ecosystem now, very few can justify their price against their performance. Dynamic and algorithmic optimization that goes beyond bid modifiers using non-identity signals reign supreme in performance, and letting go of identity seems like the sustainable bet.

Furthermore, while the addressable web shrinks, the rest of it goes on sale. As buyers concentrate their bidding power on those auctions where the user is known and consented, those auctions where the user is not known will have fewer bidders and ultimately lower media cost.

In the end, the smartest strategy will be one that can make the best use of all the available tools. A programmatic media plan that can work with the addressable web in the new era and understand its limitations while also testing and applying non-identity based programs will be the winner. The best planners and executors will also have a keen understanding of how their different identity and non-identity tactics will interact with their measurement and attribution solutions.

 

arthur hainline bidtellect

Arthur Hainline is the VP of Product at Bidtellect

This Week in Digital Advertising: Weed Wins the Election. Plus: CCPA Upgrades & How to De-Stress

This Week in Digital Advertising: Weed Wins the Election. Plus: CCPA Upgrades & How to De-Stress

Hello Bidtellectuals!

Congratulations to Bidtellectual of the Week TJ Krzyzanowski!

The Latest:

Americans turned out in record numbers on Election Day: percentage-wise, this is the highest voter turnout rate among eligible citizens since 1900. Yet the outcome of the election remains uncertain. If you’re feeling anxious or just exhausted from this week’s news cycle, try these resources to unwind:

The Clear Election Winner? Weed

On Tuesday, voters made history by legalizing weed in some form in five states. In Arizona, Montana, New Jersey, and South Dakota, voters legalized marijuana for recreational purposes. Obviously, these states also have legalized marijuana for medical purposes, as well as recreational, and this is now widely available and easy to find. For example, Arizona residents can get their MMJ card online. In Mississippi and South Dakota (separately), voters legalized medical marijuana only. The addition of these markets means that 230 million Americans – 70% of the population – live in areas with medical or recreational weed sales. The results are so definitive that they could accelerate the push for federal legalization. However, this must be made clear that though there is a legalization of marijuana, it must be understood that this must not be misused in any way. Marijuana might have medical properties, but due to its psychedelic effects, it may turn into an addiction for many, which might lead some towards centres similar to Discover Recovery Treatment.

There are several other advantages to marijuana that may not be obvious from a distance but may have contributed to its legalization. For instance, many studies have found that psychedelics such as marijuana and magic mushrooms may help in overcoming depression. On that note, nowadays people can order marijuana online for medical purposes as long as they are from a state where it is legalized. For other countries, let say Canada, one can visit weed smart or other such websites where they can easily order marijuana and get it at their doorstep. Coming back to the advantages, the Farm Bill allows hemp and hemp-derived products as long as they contain less than 0.3 percent Trusted Source tetrahydrocannabinol (THC). CBD, unlike its sister compound tetrahydrocannabinol, does not get people high. Rather, experts claim that CBD oil can help with chronic pain and stress relief. Besides, CBD can be used as a skincare product because it has anti-inflammatory properties that soothe acne and may aid with the treatment of hyperpigmentation. Another CBD product that might help people who want to smoke weed but with a lower risk of developing lung problems might use vape cartridges. People who want to try vaping can go to websites such as getkush. The main advantage of vaping marijuana is that it contains fewer toxins than smoking it. Another advantage of vaping is that you don’t have to roll joints every time you want to get high. Because there is little to no smell, vaping THC cartridges is also a great way to remain discreet.

Now let’s start advertising.

CCPA Gets an Upgrade

The Consumer Privacy Rights Act – affectionately referred to as CCPA 2.0 – has been approved by voters in California, passing with 56.1% of the vote. The amendment bolsters CCPA by both instituting a handful of new privacy rights for California citizens and making it more difficult for regulators to weaken privacy laws in the future.

Unifying the Unified ID

The Trade Desk is on a mission to achieve industry-wide adoption of their Unified ID, what they hope will be a standard-identity replacement for third-party cookies. In just a week, they announced partnerships with LiveRamp, Criteo, and Nielson. “The more collaborators join this initiative, the more critical mass it will achieve in the market,” said Michelle Hulst, EVP of global data and strategy at The Trade Desk. BTW, Bidtellect has adopted the use of TTD UID as well as Liveramp’s Identity Link (IDL).

Good News: Record Number of Women Elected to Congress

Results are still coming in, but so far there will be at least 131 women in the next Congress, setting a record that surpasses the one set in 2019 (127 elected). The number includes as many as 106 women in the House and 25 in the Senate, representing 24.4% and 25% of all members respectively. Of the women elected so far, 83 Democrats and 23 Republicans will serve in the House and 17 Democrats and eight Republicans will be in the Senate; 43 are women of color.

Stay safe, friends!

Charlotte

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Charlotte Otremba is Sr. Manager of Communications and Marketing at Bidtellect.

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