Beyond Cookies - Part 2: Adaptability, collaborations for ethical data practices

In the ever-evolving realm of digital advertising, the demise of third-party cookies has sparked a seismic shift, challenging advertisers and agencies to rethink the very foundations of their measurement and attribution models. As the curtain falls on the era of hitherto ubiquitous cookie tracking, the industry finds itself at a crossroads, compelled to explore innovative avenues for gauging the success of programmatic ad campaigns.

The extinction of third-party cookies, driven by growing concerns over user privacy and heightened regulatory scrutiny, has left marketers facing a pivotal moment. With the traditional mechanisms of tracking and targeting rendered obsolete, advertisers are now forced to navigate uncharted waters, seeking alternative solutions to measure and attribute the impact of their programmatic endeavours.

The second part of this story delves into the dynamic landscape of post-cookie advertising, exploring the multifaceted strategies adopted by advertisers and agencies to adapt and thrive. Industry leaders are orchestrating a symphony of innovations to maintain the efficacy of their campaigns.

Also read:

Beyond cookies - Part 1: The rise of alternative solutions

In a world where privacy concerns are paramount and data-driven decision-making is undergoing a profound transformation, let us explore how the stakeholders are rewriting the rules of engagement to ensure their campaigns not only reach the right audience but also resonate in a privacy-centric and cookie-less era.

Adaptability

Yes, adaptability is the key to unlocking success in the absence of third-party cookies.

With the impending deprecation of third-party cookies, advertisers and agencies are adapting their measurement and attribution models to navigate the evolving digital advertising landscape and effectively assess the performance of programmatic ad campaigns, says Laura Quigley, SVP, APAC, Integral Ad Science. The focus is shifting from media outcomes to business outcomes. According to her, advertisers are exploring new attribution models that go beyond last-click attribution, considering the role of multiple touchpoints along the user’s journey. 

“These models, such as U-shaped attribution, W-shaped attribution, and data-driven attribution, provide a more comprehensive understanding of how different ad interactions contribute to conversions. As the programmatic advertising industry adapts to the post-cookie era, the focus is shifting towards a more privacy-centric approach to measurement and attribution. By leveraging first-party data, contextual targeting, cohort-based measurement, and advanced attribution models, advertisers and agencies can continue to gauge the success of their programmatic ad campaigns while respecting user privacy,” she says.

Advertisers and agencies are adopting alternative measurement and attribution models, relying more on first-party data, contextual signals, and AI-driven analytics, says Sharath Madhavan, Lead - Performance Marketing, TheSmallBigIdea. “Multi-touch attribution models and incrementality measurement are becoming popular, allowing marketers to assess the impact of programmatic campaigns without relying heavily on third-party cookies,” Madhavan adds.

Cookieless measurement is one of the most challenging aspects facing advertisers as we move toward the privacy-forward future, observes Siddharth Dabhade, Global Commercial Board Member and Managing Director, MiQ. He stresses the need for seeking multiple solutions.

According to him, effective measurement is critical in marketing, and measurement serves as a bellwether to broader data and privacy discussions as it is helpful to know what is, and is not, working now. Therefore, he adds, a single solution to cookieless measurement isn’t likely.

“There will be too many identifiers, anonymous and authenticated, scattered across too many channels. Authenticated IDs, clean rooms, in-app measurement, attention, brand surveys, and TV measurement – it’s important to explore multi-solutions that solve for multiple identifiers and to continue to push innovation in measurement through strategic and collaborative partnerships. Solutions will emerge, evolve and complement each other, as there will always be some form of fragmentation that needs to be resolved,” Dabhade explains.

Industry collaborations

In the wake of sweeping changes in data privacy regulations and the demise of third-party cookies, the programmatic advertising landscape finds itself at a pivotal juncture. Faced with the imperative to prioritise user privacy, industry stakeholders need to forge unprecedented collaborations to establish new standards and guidelines for ethical data practices.

As privacy concerns take center stage, the traditional modus operandi of data-driven advertising is undergoing a profound transformation. In response, a diverse array of industry players, including advertisers, agencies, technology providers, and regulatory bodies, are coming together to shape a future where targeted advertising can coexist harmoniously with user privacy.

Industry stakeholders, including advertisers, agencies, publishers, technology providers, and privacy experts, are collaborating to establish new standards and guidelines for ethical data practices in programmatic advertising, ensuring a balance between effective ad delivery and user privacy, says Laura Quigley.

“One key initiative is the development of privacy-preserving identity solutions, such as anonymous identifiers and probabilistic matching that enable targeted advertising without compromising user identity. These solutions are being developed and tested through industry collaborations, such as the IAB’s Project Rearius and the Trustworthy Accountability Group (TAG). Industry bodies like the IAB and the Digital Advertising Alliance (DAA) are establishing guidelines for responsible data collection, usage, and sharing. These guidelines outline principles for obtaining user consent, transparent data usage practices, and secure data storage,” she explains.

She further adds that industry initiatives, such as the Data Transparency and Control Consortium (DTCC), are promoting consumer empowerment by providing individuals with clear explanations of how their data is being used and tools to manage their privacy preferences.

“While the collaboration among industry stakeholders is crucial in ensuring that ethical data practices are embedded into the programmatic advertising ecosystem, the government has also launched and enforced data privacy laws. By working together, stakeholders can develop and implement standards, guidelines, and tools that protect user privacy, and adhere to privacy regulations while enabling effective advertising,” Quigley concludes.

The ad-tech industry must come together to solve the biggest challenge faced by depreciation of cookies i.e. fragmented measurement in a cookieless environment, which requires advertisers to be more clever in their planning strategy, points out Siddharth Dabhade.

First, he adds, advertisers should work with their partners to identify how their current campaigns and strategies will be impacted by the removal of third-party cookies. He suggests that partners will need to complement each other’s efforts, and not duplicate, to avoid waste. Evaluate existing alternatives that are right for brands, while also prioritising consumer privacy and choice. Evaluate alternative strategies side-by-side, while cookies exist – be sure to check the impact by channel and goal/KPI.

According to him, the cookieless journey is an opportunity to unlock new KPIs and identify other metrics that may have an impact.

“Set clear and actionable goals to narrow the gaps. With the right data science and partners, we have found that reach, relevancy and ROI can actually improve with the removal of cookies. At MiQ, we leverage data from our myriad data partners to create the Identity Spine, which connects multiple data signals into a single profile; so brands can achieve connected and accurate measurement across channels. We have 150+ data connections, 8B bids analyzed daily, 300+ data experts, and manage billions of IDs–simplified into one connected solution for better connected marketing,” says Dabhade.

Industry stakeholders are actively collaborating to establish new standards and guidelines for ethical data practices in programmatic advertising, observes Sharath Madhavan.

He cites initiatives like the Partnership for Responsible Addressable Media (PRAM) which are bringing together advertisers, agencies, and tech platforms to define practices that prioritize user privacy and consent. These collaborations, Madhavan adds, aim to create a transparent and ethical framework for data usage in the evolving privacy landscape.

As the industry grapples with the challenge of maintaining relevance in a cookie-less era, these collaborations are not merely symbolic, but represent a strategic imperative. From defining consent mechanisms that empower users to exert greater control over their data to establishing guidelines for responsible data sharing, stakeholders are actively engaged in building a framework that balances the needs of advertisers with the rights and expectations of consumers.

These initiatives are not only reshaping the industry, but also fostering a culture of responsibility and trust. In an era where data is both a valuable commodity and a potential liability, industry leaders need to unite to navigate the delicate balance between effective advertising and respect for user privacy.