Blog Post

Understanding the Cookieless Future and Its Implications for Advertisers

02/21/2024 - Sierra Ducey

We’re excited to announce our new video series, “Countdown to the Cookieless Future,” aiming to demystify the impending shift in digital advertising due to the depreciation of third-party cookies in Chrome and outline proactive steps for advertisers.

As we embark on this journey, it’s crucial to recognize the foundational role third-party cookies have played in digital advertising and the reasons behind their phased removal. Our first episode,  “Understanding the Deprecation of Cookies and Its Implications for Advertisers,” sets the stage as Digilant’s Director of Marketing, Victoria de Leon, sits down with Digilant’s own Kyle Malone, Director of Solutions Engineering, and Otniel Calderon, Manager of Solutions Engineering, to discuss what these changes mean for advertisers and how they can adapt.

For anyone looking for a primer to better understand and navigate the post-cookie landscape, hit play on the video or check out the full recap below.

Want to tune in but short on time? Listen to or download the full episode on Spotify and get up-to-speed while you’re on the move.

 

The Dawn of a New Era in Digital Advertising

To set the stage for the removal of third-party cookies, Victoria de Leon covered the basics with a simple, but important question:

What is a basic understanding of third-party cookies?

Otniel Calderon elaborates on the essence of cookies, likening them to digital footprints that map a user’s journey across the internet. This tracking capability has been instrumental in enabling advertisers to deliver personalized experiences, measure campaign effectiveness, and optimize strategies in real-time. He underscores the critical junction the industry faces, propelled by technological advancements and heightened legal scrutiny, signaling a pivotal moment for evolution.

Third-party cookies have acted as a cornerstone for targeted advertising, leading de Leon to ask:

Why is Google removing third-party cookies from Chrome?

Kyle Malone points to the growing global demand for privacy and data protection as the catalyst for change. With regulations like GDPR and CCPA setting new standards, the digital landscape is shifting towards a more privacy-conscious framework. Calderon adds that transparency has become a non-negotiable expectation among consumers, driving platforms like Google to reimagine data collection and usage practices. This transition, they argue, reflects a broader industry movement towards ethical data use, prioritizing user consent and control.

Background: A Brief History of the Cookie Depreciation

The conversation takes a step back to review the timeline of Google’s announcement and the industry’s journey towards acceptance and preparation for a cookieless future, as de Leon asks:

What is Google’s Timeline for the removal of Third-Party Cookies?

Reflecting on the initial announcement in early 2020, the panelists discuss the industry’s mixed reactions, ranging from skepticism to proactive adaptation. The slow progression towards cookie deprecation, marked by delays and uncertainty, served as a grace period for many. However, in January 2024, Google began phasing out cookies, starting with 1% of users, making the reality of a cookieless future undeniable.

de Leon then challenged the panelist to underscore the urgency of Google’s changes by asking:

When will we see third-party cookies completely disappear?

Malone offers insights into the timeline, noting Google’s tentative deadline but also acknowledging the fluidity of these estimates. The uncertainty underscores the need for continuous adaptation and preparedness. He advocates for a proactive approach, emphasizing the importance of staying ahead through ongoing testing and learning.

Navigating the Transition: Strategies and Considerations

Knowing that the removal of third-party cookies from Chrome is underway, the conversation transitioned to actionable insights and strategies for advertisers to adapt and thrive de Leon asks:

Now that we have arrived and Google has started this process of removing third-party cookies, what should advertisers do to embrace cookie-free solutions?

Calderon highlights the urgency of adopting new strategies, citing the example of companies like Apple, which has already moved away from cookies, demonstrating significant impacts on the advertising ecosystem. The key, he suggests, is in experimentation and flexibility. Advertisers need to explore alternative data sources, such as first-party data and contextual targeting, to maintain relevance and effectiveness in their campaigns. This transition period offers a unique opportunity for innovation, pushing advertisers to develop more sophisticated and privacy-compliant methods of engaging with their audiences.

To offer solace for those who haven’t made steps toward cookie-free advertising, de Leon prompted the panelists to offer tangible tactics and solutions with the question:

How does the industry prepare for this massive change if they haven’t already?

Malone and Calderon offer a comprehensive roadmap for advertisers, stressing the significance of first-party data, collaboration with technology partners, and the exploration of new advertising channels. They encourage a holistic view of audience engagement, moving beyond cookies to embrace a future built on transparency, consent, and mutual value exchange between brands and consumers.

The Future is Bright: Looking Forward with Optimism

The episode concludes with a message of resilience and opportunity, encouraging advertisers to focus on the future with a strategic and open-minded approach. The panelists reflect on the transformative potential of the cookieless future, envisioning a digital advertising landscape that is not only more privacy-compliant but also more innovative and effective. They underscore the importance of embracing change, testing new approaches, and remaining adaptable as the key to thriving in the evolving digital ecosystem. Watch the full video for a comprehensive exploration of the topics discussed.

Looking for more tips and solutions as we face the depreciation of third-party cookies? Check out us for the next installment in our series, where we dive into the nuances of first and zero-party data strategies. Watch Episode 2 here. 

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