A Cookie-Less World: The Future of PPC

In January 2020, Google unveiled plans to block third-party cookies for all Chrome users by 2024, bringing an end to the era of third-party data gathering and ushering in a new cookie-less world. This however brings a certain level of uncertainty for marketers and brands who have depended on this data for their marketing and are now looking for alternative innovative methods to prepare for this industry shift.

The “cookie-less” future signifies the gradual phasing out of third-party cookies, which have long been used to track user behaviour and facilitate targeted advertising. Major web browsers have already begun to phase out support for third-party cookies due to mounting privacy concerns, compelling businesses to adapt and reevaluate their online marketing strategies.

According to a survey from April, among marketers worldwide, a lack of preparedness for a cookie-less future ranked second in terms of leading concerns in media and marketing initiatives worldwide. Additionally, only 61% of brand marketing executives and 51% agency executives stated they were confident about reaching audiences at scale without third-party cookies and IDs. While this shift will no doubt cause ripples across the industry, there will be those that are more impacted than others. For example Pay-Per-Click (PPC) advertisers will experience the brunt of the impact and will now have to figure out how to navigate in this new world to reach their intended audience.

This shift is seemingly the natural evolution of the online marketing and advertising worlds. However, the specifics of the ban provide more questions than answers. Therefore some education is needed on the implications of a cookie-less world, how PPC advertisers can navigate the shift, and the strategies that will prove to be beneficial in this new era.

The Cookie-Less Era and its Challenges

Cookies are small data pieces placed within users’ browsers as they navigate the web, which tracks interactions, behaviours and enables advertisers to deliver tailored content and ads. Essentially, they have served as the bedrock of digital advertising, but with increasing privacy concerns however, this era of covert data collection is now seeing its last days.

Long established web-browsers are now phasing out third-party cookies, taking onboard strider privacy measures, limiting tracking capabilities, or eliminating cookies entirely.  Firefox, Safari, and Mozilla have already blocked third-party cookies, and Google is set to follow, marking the start of a new chapter in the industry.

In this cookie-less world, advertisers are faced with several challenges when it comes to targeted advertising. Advertisers who previously relied on cookies to monitor and pinpoint specific audiences based on their online activities and browsing histories will no longer be able to do so in the classic way. Personalisation also becomes more demanding due to restricted access to user preferences and historical data and attribution models that traditionally linked conversions to specific interactions may become less precise without cookies to attribute them.

Cookies were also used to manage ad frequency, ensuring that users weren’t bombarded with the same ad repeatedly. This becomes tricker in a cookie-less world, potentially leading to overexposure or underexposure of ads. It also affects measurement and analytics of adverts as cookies helped provide accurate granular data on performance.

In essence, third-party data has played a crucial role for PPC advertisers, and its absence presents notable challenges. However, a cookieless world also brings opportunities for innovation and enhanced user experiences, requiring PPC advertisers to develop innovative approaches to their campaigns and customer engagement without relying on invasive tracking methods.

Marketing Technology News: MarTech Interview with Christian Ferri, Co-Founder and CEO of Web3 Pro 

The Solutions

1. Utilising First-party data:

• The key difference between third-party and first-party is that, unlike third-party data which is shared across entities, first-party data comes directly from a website’s visitors. This makes it more accurate, reliable and specifically tailored to user interactions within a website.
• With the focus on first-party data, encouraging users to share information through sign-ups, subscriptions and loyalty becomes crucial. This information allows PPC advertisers to better understand their audience and personalise campaigns effectively, all without the use of third-party data.
• This change highlights the importance of building strong direct relationships with users and encouraging them to willingly share their information.

2. Contextual Targeting:

• Instead of relying on individual user behaviour, advertisers should place ads in content environments relevant to the viewed content’s context.
• Relevancy is paramount. By examining the content consumers engage with, their online activities, and behaviours, we gain valuable insights. Marketers can use this information to determine which messages will resonate most effectively. This in essence, encapsulates the concept of contextual targeting
• With this strategy, PPC advertisers can guarantee that their ads are displayed to users who share similar interests or exhibit specific mindsets, greatly assisting in converting these users.

3. Investing in AI and Machine Learning:

• With the loss of third-party cookies, AI and machine learning will become essential tools for PPC advertisers. These technologies identify patterns and behaviours, enabling accurate predictions of user preferences.
• Through rapidly processing and analysing large volumes of data, AI and machine learning algorithms develop predictive models based on available data, including user interactions and contextual cues. This enables advertisers to anticipate user preferences and behaviours, enabling the targeting of users based on their likely future actions.
• AI also shines in the realm of personalization. Leveraging real-time data such as search queries, location, and context, advertisers can craft and deliver highly pertinent ad content tailored to individual users.
• These technologies empower advertisers to adapt to shifting user preferences while respecting privacy concerns.

4. Expanding Advertising Horizons:

• With an abundance of media channels currently available, relying solely on traditional PPC platforms is no longer sufficient in reaching and captivating audiences effectively. To navigate this evolving landscape, advertisers must venture into various alternative channels, each presenting distinct benefits and possibilities.
• Advertisers should broaden their horizons by delving into social media advertising, affiliate marketing, influencer marketing, content marketing, and other advertising approaches.
• These avenues offer unique advantages and opportunities, reducing dependence on cookie-based targeting.

Welcoming Transformation

This cookie-less era is prompting advertisers to shift their focus toward privacy-respecting practices, innovative targeting methods, and data-driven strategies that can thrive in a world where third-party cookies are no longer the primary source of user data and tracking.

Establishing direct connections, harnessing cutting-edge technologies, expanding channels and rethinking campaign strategies will empower advertisers to flourish in a cookie-less world. Experimentation and innovation is the first step towards adapting to change, and as cookies become a thing of the past, the opportunity emerges to redefine brand-consumer interactions, fostering meaningful experiences that enhance credibility and trust, benefiting both digital marketers and advertisers.

Marketing Technology News: While ChatGPT Got the Headlines, Meta’s AI Took Q4 Pole Position