It's the last dance for third-party tracking

Many in the ad industry were caught off-guard when Google announced its U-turn to deprecate third-party cookies, the primary method for marketers and publishers to build profiles and ultimately monetize online behaviour.

For most in our industry, the reaction was almost unanimously positive. On the surface, this was the reversal of the long-feared ‘cookieless world’ the industry had foretold. But dig a little deeper, and savvy marketers know this is merely a stay of execution—not a full pardon.?

The push for tighter online privacy and greater consumer control will continue, and rightfully so. We should all have a greater say on what happens when we’re online. Google itself has said it’s instead exploring “an updated approach that elevates user choice.” This means that, while cookies may not be turned off by default, Chrome users will likely have the power to select how and when they’re tracked at their own discretion.?

That choice element is vital. For some, there is absolutely a desire to be tracked to improve the web browsing experience. Personally, if I’m shopping online, I’ll often leave an item un-purchased in my digital cart knowing I could be served an ad for a better deal to save me money. And if I’m using an ad-supported platform, my preference would be to see content from established brands which more closely align with my own interests, instead of irrelevant junk. Cookies enable this.

But more choice means changing behaviours, and consumers are more savvy about online privacy than ever. So this remains the last dance for brands who already rely heavily on ecommerce and digital channels—especially those who continue to pin all their hopes on cookies sticking around.?

First-party data has always been king, but it’s going to get elevated to deity-like status. Email lists will take greater prominence, with more pressure to keep them updated and in good order. As the consumer is given more power we’ll have to find unique ways to reach them at special moments, and this means working much harder as advertisers to be worthy of their attention.?

What this boils down to is getting back to the basics as marketers. At Panoply, we strive to be standard-bearers in collectively pushing for excellence in our industry. This means:

• A small percentage of cookie-based tactics may still be effective, but overall performance is likely to decline. Revisiting your channel mix, browser mix, and marketing mix will be crucial to maintaining performance. Compared to today, it’s estimated that 17% of Chrome users will opt-in to sharing cookies—which means 87% of all online traffic will not be. That’s a big shift.

• Brands must enhance their ability to collect and accurately classify first-party data. As we enter the Advanced Analytics phase of the Big Data era, leveraging sophisticated techniques such as machine learning and artificial intelligence will be essential for deriving actionable insights.
• Contextual placements will gain importance and slightly change how campaigns are assessed. Applying traditional media measurement techniques will help clarify digital media performance.
• Finding new technological solutions to replace cookie tracking will be crucial. Brands will need to adapt their tech stack, whether by partnering with existing technology providers, utilising Google’s Privacy Sandbox, or exploring privacy-enhancing technologies (PETs) that offer the opportunity to use data in a privacy-safe way.

At Panoply, we relish the chance to work with our clients in effectively actioning their data and aligning creative efforts to connect them with their desired audience. There are so many different ways to learn about your customers and engage with them on a human level.?

We have moved into the last dance of third-party data. And before the music stops, we all better be ready.?

Bobby Destounis is a Canadian advertising industry leader with 20-years experience working with some of the largest agencies and supporting globally recognised brands with high-performance media campaigns. He is President and Co-Founder of Panoply Media, a Montreal-based agency which devises and delivers best-in-class media planning, buying, and creative deployment. Learn more at www.gopanoply.com.