The Challenge of a Cookieless World
What Are Cookies?
Cookies are, to put it simply, tiny bits of data placed on web browsers to track user behavior, preferences, and browsing history for targeted advertising.
It is crucial to point out before starting our newsletter edition, that the “cookieless” era hints to the time after the ban of only third-party cookies, not all of them.
This means that advertisers can still utilize first and second party cookies as long as they remain respectful to consumers’ privacy and security, in mutual agreement.
As we’ve said, the future is not entirely cookieless! But, why do we say that this is a "cookieless future" is simply because third-party cookies have been essential to every digital advertisers for decades prior to this day, and they are being phased out.
Why Are Third-Party Cookies Going Away?
Why are they going away if they are so beneficial to each and every one of advertisers? The increasing consumer privacy concerns and stricter data regulations (like GDPR, CCPA) are driving this deprecation of third-party cookies.
These privacy concerns for third-party cookies have resulted in the prohibition of them on Safari and Firefox browsers in the early 2010s, and have been banned by default on these browsers ever since.
Following their “rivals”, Chrome which owns approximately 65% of browser market share has initiated the phasing out of third-party cookies, saying privacy of their users are top priority:
“When it comes to improving privacy on the web, the work is never finished. That's why in Chrome, we continue to invest in features that protect your data and provide more control over how it’s used. This includes taking steps to limit the ability to track your activity across different websites.”
And then, they initiated a feature called Tracking Protection, which will cover only 1% of users selected randomly in this third-party cookies (3PC) deprecation. This feature will test those users by restricting websites from using cookies on these selected users, and will be available to all Chrome users by the end of the year.
The impact of the deprecation is that traditional advertising strategies that relied heavily on third-party cookies for targeting and personalization become unavailable, which leads to a call for an advertising “savior”.
AI to the Rescue: Solution for the Cookieless Era
As we move to a world without cookies, AI steps in as this very same savior. It's like having a smart assistant for your advertising, as AI can potentially look at the content of websites to show relevant ads without the need of these third-party cookies.
To visualize how this works: Let’s say you're reading about running on a blog of a fitness webpage, AI most likely will show you ads for running shoes. And boom, contextual targeting!
It also uses data you've agreed to share, making sure ads are still personal, related, and useful; but also in a way that respects your privacy. This way, AI helps advertisers reach people effectively, even when old methods aren't possible anymore after the phasing out.
Here's how AI could be of help to advertisers overcome these challenges in an upcoming third-party cookieless era:
On a side-note, users won’t lose data like their sign in informations or passwords once this phase out happens; those are first-party cookies that you share with the website you are on, which are not shared with any other organization, website, advertiser or alike.
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Benefits of AI-Assisted Cookieless Advertising
AI-assisted advertising should focus on privacy, making sure that ads respect viewers' personal space in a world without third-party cookies. By having AI as your assistant, advertisers will be saving time and resources by automating ad placements and targeting all while keeping it respectful for consumers’ privacy.
AI assistants are also future-proof, meaning it adapts to new rules and consumer needs smoothly once a new ruling is put into place like GDPR or CCPA.
Consequences of a Cookieless World
A recent study conducted by Google itself reports that 91% of internet users aged in between 16-74 state that they are more likely to shop with brands that provide offers and recommendations that are relevant to them.
Which means that companies should be aware of the consequences this phasing out means for their advertising efforts, and act accordingly.
AI has several benefits that could help these companies once 3PC deprecation finalizes:
Privacy-Centric: Advertisers can reach their target audience without compromising on privacy.
Efficient: AI automates and optimizes processes like audience segmentation and ad placement.
Future-Proof: Adaptable to ever-changing regulations and consumer expectations.
Better User Experience: More relevant, less intrusive advertising.
And finally, staying updated with AI advancements makes sure that your advertising efforts remain effective and respects privacy of everyone. These considerations help your advertising results are strong and efficient, even without these traditional third-party cookies every company is accustomed to.
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Knowing Google, there could be an update any minute on the state of third-party cookies that could change everything for advertisers' future. To stay ahead and informed, follow Adin.Ai and our newsletter AI in Marketing editions!