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Home»Marketing»Google’s changes prompt marketers to test third-party cookie alternatives
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Google’s changes prompt marketers to test third-party cookie alternatives

The Elite Times TeamBy The Elite Times TeamFebruary 15, 2024No Comments6 Mins Read
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Instead of waiting for a lifeline from Google, some marketers are taking matters into their own hands.

The company is now testing alternatives to third-party cookies after the tech giant cut out 1 percent of third-party cookies in its Chrome browser. These marketers understand that testing isn’t perfect, but they see an opportunity to get a start. After all, if not now, as they claim, then when?

“We are more interested in this [alternatives to third-party cookies] There were more at this time earlier this year than in all of 2023,” said Georgie Haig, product lead for identity at programmatic marketing agency MiQ.

The degree and type of interest varies depending on the region.

In Europe, for example, there are early signs that data partnerships are catching the eye of some marketers. These agreements are implemented within publisher-owned and operated environments, often through private marketplaces or direct data sharing relationships, in conjunction with first-party IDs. Jochen Schlosser, Chief Technology Officer at Adform, explains: [data]. Usage of our solution has doubled. ”

Part of this momentum is being driven by Adform’s identity hub solution, ID Fusion. This software allows publishers to manage multiple identity solutions. When a publisher activates any ID, Adform sends that ID to a bid request, giving advertisers the flexibility to bid via a demand-side platform. Mr. Schlosser expanded on this point. [DSP] This was the setting last year, but we expect an even greater increase this year. ”

Nevertheless, it is important to recognize that the marketers behind these movements are still in the minority. Many more people are hesitant to try alternatives to third-party cookies. This requires a shift from precision to prediction in targeting and measurement, which inherently involves some degree of uncertainty.

That doesn’t mean the people experimenting aren’t comfortable at all. They recognize the challenges, but believe it’s important to understand and address them rather than relying solely on Google’s guidance.

“The poor quality of the data we get from these cookies is not a huge loss,” said Catherine Lautier, Danone’s global head of media and brand communications. “this [the loss of third-party cookies in Chrome] One of my main arguments for our business is to understand the power of retail media data and invest in first-party data and other types of third-party data. ”

For example, advertisers are working with agency Essence Wavemaker to blend geolocation and contextual data with their own first-party data to target ads. Lauthier said the results were not made public because it was still in the early stages. However, this is an approach that has impressed other advertisers based on their own testing.

Take British retailer Homebase as an example.

Rather than relying on Google’s alternative cookies, Homebase uses integrated solutions from Havas Media Network. The tool captures audience demographics and cohorts based on media behavior, demographics, psychographics, and more from a growing compendium provided by partners like YouGov. The tool matches these attributes to individuals on the platform through artificial intelligence, bypassing the need for third-party cookies.

“In our first tests with a gardening audience, we saw a 16% improvement in cost-per-click (CPC) performance compared to traditional business (BAU) campaigns,” says Homebase Marketing Director , said Lisa Tickle. “We also ran a follow-up test with Converged targeting the Kitchen audience, which resulted in a 43% reduction in cost per lead (CPL) compared to BAU prospects.” It was observed that.”

And the best part? We didn’t even need our own data to achieve these results. Instead, Tickle said she and her team devised several audience groups that they thought would be interested in Homebase’s gardening products and tested her campaign with each. Once the AI ​​learned which campaigns and audiences were performing best, it adjusted spending accordingly, optimizing until all ad spend was below the top-performing campaign. Havas said the tool can typically do this within 48 hours.

“Privacy and consent are fundamental, and data modeling and the use of AI to close the ‘gaps’ will be key and likely will lead to significant progress,” Tickle said. “With this in mind, we are looking to future-proof our business and protect our media spend while also delivering on our own channels, such as email, for a complete omnichannel customer experience and customer experience. We invested in Havas Media’s converged platform to deliver… Well, that’s the aim.”

It’s not hard to see why advertisers like Homebase are interested.

It could be argued that these tests promise a much more ethical way to run advertising campaigns, by offering a method of advertising that doesn’t rely on tracking users through cookies or hashed emails. Only time will tell if this approach proves effective in reaching the widest possible audience and driving the most engaged advertising. In the meantime, Homebase is not leaving anything to chance and is already considering other alternatives to third-party cookies.

In fact, Tickle said he’s already seeing “very good match rates” using ID5 as an alternate ID. Like many of her colleagues, she knows that no alternative exists to replace these cookies. She also acknowledges that these alternative identities are not entirely without problems. On the contrary, there are ethical concerns, technical limitations, identity fragmentation, and high maintenance costs.

The plain truth is that there are no easy solutions to the cookie challenge. However, there is growing recognition that long-term solutions require abandoning outdated tracking methods and adopting new, privacy-compliant methods.

As Tickle explained: “Yes, we absolutely believe there is a role for alternative IDs. Of course, consumer consent is required. These can be managed in a privacy-secure manner and is already working with alternative universal identity providers such as ID5.”

The debate over whether marketers should use ID is controversial. But in any case, when using them, it is important to understand how they work.

For example, some advertising executives emphasize the importance of distinguishing between publisher-driven alternative IDs that actively send emails from logins and the use of on-page scripts that essentially collect data. Some people. The former is gaining interest among marketers for its potential privacy benefits.

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