In recent years, the advertising industry has undergone significant changes due to the new GDPR regulations introduced in 2018. These regulations have prompted major browsers to provide greater consumer protections, outlining a future "cookieless" environment for advertisers.
Cookies are text files saved in a user's browser cache while navigating a website, allowing the website and any third parties to recognize the user's behaviors, characteristics, and preferences. In terms of privacy, they are classified as first-party or third-party cookies, depending on who creates and manages them.
With the introduction of GDPR in 2018, major browsers have moved to eliminate third-party cookies, aiming to better protect consumers. Google, the browser used by 64% of global users, announced a gradual depreciation of third-party cookies starting from January 1, 2024, with the goal of transitioning to a 100% cookieless environment by the end of 2024.
Strategies for marketers
Marketers will be deprived of third-party cookie inputs to manage their campaigns, while the measurement of these cookies is becoming increasingly inefficient in tracking user paths. The optimal strategy for brands involves adopting strategies that emphasize first-party data, such as new contextual targeting, the implementation of new identifier IDs for each touchpoint in the funnel and providing transparent data usage to earn user trust.
Impact on marketplaces
Regarding marketplaces, the impact of third-party cookie deprecation will be less significant compared to those exclusively operating in open web. Marketplaces like Amazon, Mediaworld, Carrefour, and Zalando have always prioritized the use of first-party data in their advertising targeting. Amazon, in particular, has access to the data of 300 million users worldwide, providing a 360-degree view of user paths and purchasing habits.
Furthermore, all sites within Amazon's proprietary inventory portfolio allow the use of first-party data for targeting, even outside of Amazon. Amazon will also be capable of measuring conversions and campaign effectiveness without third-party cookies, thanks to integrating off-Amazon conversions into campaigns and Amazon Marketing Cloud.
In the future, Amazon will not only be able to navigate the cookieless transition but also emerge as one of the most significant sources of qualitative and quantitative information in advertising, which can be utilized to enhance brand performance. It is crucial for brands to plan ahead and act in real-time to minimize the impact of this shift.
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