Ad targeting without third-party cookies

The problem with third-party cookies isn’t just the amount of personal data they collect or the sensitive nature of that data – it’s that all the data third-party cookies collect can be compiled to create extensive user profiles consisting of thousands and thousands of data (your Google searches for the last five years, your credit card transactions, your profile on dating apps, and so on).

Moving into the “Era of Prediction”

During a recent video, Radhika Mani, Senior Product Manager for Google Display Ads, presented Google’s vision for a cookie-free future.

The video comes just as Google plans to end third-party cookies in Chrome. Cookies enabled advertisers to track users across websites in order to display targeted ads. But on the other hand this raised privacy concerns.

According to a Google survey, 89% of Internet users would trust brands more if they invested in privacy-safe technologies.

” In a future without third-party cookies, marketers will have to look for more sustainable strategies ,” Mani said. She pointed to improved use of first-party data and integration with new privacy tools such as the Protected Audience API in the Privacy Sandbox.

The API introduces techniques such as minimum thresholds for ad targeting and shorter storage durations of user data to limit persistent tracking. Google says its ad platforms will integrate APIs to maintain audience targeting while meeting strengthened privacy standards.

This does not mean the end of consent

On the contrary, your website will still need to request and obtain the user’s express consent before allowing any data to be stored on the user’s browser, regardless of what technology is used; be it third-party cookies, local storage or trust tokens.

Your website will still need to inform its end users about the technology you use to collect personal data, including the provider, purpose and duration, and securely document the consents obtained and renew them at least annually.

New first party data options

According to Mana, advertisers will continue to create audience lists as before. However, improved artificial intelligence is expected to help fill the gaps left by less expansive tracking — solutions such as smart bidding and optimized targeting aim to increase ad relevance using internal algorithms.

Mani stated that optimized targeting increased conversions by 50% for some Google Display clients. By upgrading campaigns to Performance Max, Google also extends first-party data capabilities such as customer matching to enable personalized ad targeting based on advertiser customer data.

New options such as PAIR enable the use of first-party data on externally published websites.

Google encourages advertisers to adopt these artificial intelligence tools and first-party data capabilities to prepare for the phasing out of cookies.

The greatest emphasis on privacy issues

The abandonment of third-party cookies comes amid growing consumer demands for stronger data privacy protections.

Tech companies have faced increased scrutiny over their handling of user data, with practices like highly targeted behavioral advertising raising ethical questions. The phase-out of third-party cookies aims to prevent the constant tracking of individuals on the Internet.

On the one hand, it could affect digital ad revenue. On the other hand, alternative targeting and measurement approaches can fill the gap.

Although targeting accuracy may decrease after phasing out third-party cookies, advances in the use of first-party data and artificial intelligence optimization offer alternatives. For online marketers, investing in automated consent-based solutions is critical to surviving in a changing environment.

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Source: Searchenginejournal