Even If Third-Party Cookies Had Vanished, We Would Have Been OK 

Even If Third-Party Cookies Had Vanished, We Would Have Been OK

Marketers should not pause on their path to a more sustainable future

First-party data initiatives are vital, with or without third-party cookies in the mix.

Adtech is no stranger to hype—and hysteria. In an industry that moves as fast as digital advertising, marketers are understandably on guard for policy and technology shifts that could upend their status quo—not to mention their ROI.

The continually delayed—and now completely dead—deprecation of third-party cookies in Chrome is a perfect example of the advertising industry working itself into an overblown frenzy, and that’s not just because the event isn’t happening anymore. Even if third-party cookies were to be deprecated, the level of industry anxiety that the idea induced was simply too much.

The path to where we are today gave the industry plenty of time to fret, both in conference rooms and industry opinion columns. But amid this fretting, many within our industry failed to acknowledge that our industry has weathered its fair share of shakeups over the last couple of decades—and has continued to push forward as strong as ever.

Lest we forget: Third-party cookies are a tool, not a strategy. They influence how marketing is delivered and measured, but they’ve never been a substitute for a sound marketing plan or strong data practices. Their demise would have required reorientation, not a wholesale abandonment of how marketers do their jobs.

Why exactly couldn’t the world’s fourth most valuable company get this right?

The Privacy Sandbox Has Always Been a Farce

For perspective, let’s look at some of the most consequential events and trends in digital advertising’s past two decades—and the ways in which they refined, rather than devastated, our industry.

The Controlling the Assault of Non-Solicited Pornography And Marketing Act was enacted in the United States to set rules for commercial email. It established requirements for commercial messages, gave recipients the right to have emails stopped from being sent to them, and spelled out penalties for violations.

The CAN-SPAM Act changed email marketing practices by enforcing opt-out mechanisms and truthful subject lines. But did it throttle email as an effective marketing channel? Hardly. Two decades later, 18% of companies report that their email marketing ROI is greater than $70 per $1 invested.

Ad blockers (2000s–present)

The rise of ad-blocking software sent significant waves through the digital marketing industry. Ad blockers, which prevent advertisements from being displayed on websites, reduce the reach of digital ads, and increase the need for marketers to supplement those ad buys with alternative channels and tactics.

That said, rather than spelling doom for display advertising, the space has continued to evolve and grow, even with the increased adoption of ad blockers. In 2024, U.S. programmatic digital display ad spend will total $157.35 billion, representing 15.9% year-over-year growth.

FTC Endorsement Guides (2009, updated 2023)

In 2009, the Federal Trade Commission issued guidelines (later revised) that require bloggers and social media influencers to disclose any material connections they have with brands they promote. The move was designed to increase transparency and reduce the possibility of consumer deception.

While marketers at the time were concerned the new rules would reduce the effectiveness of influencer relationships, the move ultimately increased the sophistication of the influencer marketing space, which has sparked greater trust. A 2023 study found that 69% of consumers are likely to trust a friend, family member or influencer recommendation over information coming directly from a brand.

GDPR (2018) and CCPA (2020)

The General Data Protection Regulation, implemented in the European Union, represented one of the most stringent privacy and security laws in the world. It requires businesses to protect the personal data and privacy of EU citizens: Companies must obtain explicit consent before collecting personal data, and individuals have the right to access and delete their data. Later, in the U.S., the California Consumer Privacy Act similarly gave California residents more control over the personal information that businesses collect about them. Setting a precedent for other states to follow, CCPA includes the right to know what data is being collected, the right to delete personal data and the right to opt-out of the sale of their data.

As the industry contends with turbulence, a DPO can help publishers navigate regulations by advocating for consumer privacy.

An Unlikely Hero of Advertising: The Data Protection Officer

These regulations have significantly affected how companies collect, store and process data, leading to more transparent data practices. However, they haven’t throttled investments in or the effectiveness of digital advertising. The industry continues to grow globally, and in a more sustainable and privacy-friendly way.

Apple’s App Tracking Transparency (2021)

Apple’s iOS 14.5 update introduced ATT, requiring apps to get user permission before tracking their data across other apps and websites. This update disrupted mobile advertising by limiting access to iPhone user data for personalizing ads and measuring their effectiveness. However, it did little to change the importance of mobile within the overall advertising landscape. Rather, the industry has pivoted by embracing SKAdNetwork—Apple’s framework for measuring campaign effectiveness without collecting device-level or user-level data—marketing mix modeling, lift studies and more.

Collectively, these events and developments have pushed the digital marketing industry toward more ethical, transparent and privacy-focused practices—and the deprecation of third-party cookies in Chrome would have done the same. Yes, it would have disrupted “business as usual.” But it was also prompting the industry to embrace more sustainable solutions and deepen its investment in high-quality data and approaches.

Marketers should not pause on their path to a more sustainable future. Regardless of Google’s plan for cookies, there are two ways marketers must be adjusting their data-driven marketing strategies to stay relevant in an increasingly privacy-focused landscape.

Prioritizing and revamping first-party data strategies to ensure brands have strong customer connections on which to build. Preparing for the future isn’t just a matter of generating more first-party data (though that’s a part of it). It’s also about gathering the right data, organizing it to be actionable, and building the networks and relationships necessary to unleash its power. By establishing a system of organized, properly permissioned multichannel data, brands can activate their data efficiently and effectively. These first-party data initiatives are vital, with or without third-party cookies in the mix.

Reviewing and reassessing data partnerships to ensure providers and solutions are equipped to maintain relevance in an increasingly signal-challenged world. Just because Google plans to continue support for third-party cookies doesn’t mean all the work and innovation that went into preparing for their death has gone to waste. Signal loss will continue to be a challenge, and the advances made to embrace an ID-agnostic mindset and diversify the connections among consumer data are absolutely vital to the future of the industry. The companies that put in that effort in earnest have proven themselves the kinds of partners that are committed to helping advertisers thrive in uncertainty; partner vetting processes should still elevate these kinds of relationships.

Google’s decision to keep cookies around will still have an uneven impact across the industry.

Google Won’t Kill the Cookie. Here Are the Winners and Losers

Meanwhile, marketers must take shifts within the digital landscape in stride. In time, we will look back on the preparations we made for the deprecation of third-party cookies as yet another milestone on the path to building a sophisticated and sustainable industry that’s capable of growing, rather than crumbling, in the face of disruption.

Source: Adweek

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