The new challenges advertisers will face with the ban on third-party cookies and how to adapt.
What are cookies? Cookies are small files that are generated in our browsers as we browse different web pages. They are used to store data about our behaviour, such as site preferences, login and password information, products and/or categories usually searched, or products added to a shopping cart.
Not all cookies are the same: there are first-party cookies, generated by the site owners. They are used both to store browsing preferences and to store behavioral data within the site (which will later be analysed and used to provide more personalised experiences). There are also third-party cookies, created by other organisations outside the site and used for tracking ads across different sites.
Third-party cookies allow advertisers to create hyper-targeted ads for individuals, even when they have not interacted with the brand in question. GDPR regulations require the user to give consent, but once they do, they lose visibility of who is collecting their data. This can lead to persistent and hyper-targeted messages from unknown companies with questionable reputations, resulting in an invasive experience.
What does the future hold in a world without third-party cookies? From the consumer perspective, they will have more power over who stores their data. Explicit consent will be required from anyone wishing to collect behavioral data. However, personalizations within unvisited sites will be less common, which may expose users to less relevant content.
For advertisers, the landscape changes radically: they will need to create hyper-personalized experiences to reach their potential customers more effectively. This also represents a major challenge for DSPs (Demand Side Platforms) that primarily market audiences built from third-party cookies. They will need to review their strategy and rely more on other parameters such as keywords, content categories, devices and first-party cookies through partnerships.