For almost two years now, Google has planned to end their approval for 3rd party cookies. The timeframe was extended to 2023, but finally, we know that third-party tracking cookies won’t be supported by the Google Chrome browser starting next year. It’s a major step as Chrome has over 60% of the market share, right next to other browsers like Safari, Firefox, and Edge, which also don’t use 3rd party cookies. So how will this change affect retargeting, one of the most effective ways of advertising? Let’s find out!
What’s going on with ads using 3rd party cookies?
Cookies have been used for years to personalize the settings of internet users, especially in terms of their advertising preferences. These small text files are sent to the browser by the website to collect information about each visit so that the next time the site is better suited to the user preferences. 3rd party cookies enable ads to be displayed to relevant audiences. One of the most effective methods of using them is retargeting, which matches the ads based on the user’s previous browsing history and displays the products and services that he has already been interested in. However, the possibility of identifying users across websites works because of 3rd party cookies and they are required to partake in the auctions, place bids and show the ads.
How about using 1st party data?
We should point out that 3rd party cookies are tightly connected to 1st party data, and even though they won’t be supported anymore, 1st party data can still be used. So how will ads be created without 3rd party cookies? There is one leading approach officially endorsed by main browsers, such as Chrome and Edge. How does it work? It consists of privacy-preserving marketing APIs, which provide privacy to internet users while still allowing for advertising.
The 1st party data we use right now will stay the same, and various technology vendors will use it as the basis for creating user groups with similar characteristics. As a result, identification won’t be assigned to one user but to a group of users. Devices will store the data about the group the user is part of. During your marketing campaigns, you will be able to pick interest groups, and the recommendation engine will personalize the ads according to the advertiser’s data.
What are the biggest challenges to overcome?
Of course, there are still some challenges that need ironing out. The two main ones concern the creation process of ads that will be personalized for a group of users as well as being able to accurately estimate the value of users within those groups. One of the best solutions to the first issue is Product-level and TURTLEDOVE, which allows marketers to show appropriate product suggestions, optimize creatives and even maintain the ads’ personalization user experience. Meanwhile, Outcome-based TURTLEDOVE enables you to extend the options of bidding functions, assess each user separately, and distribute marketing budgets.
