Blog

A common and popular topic of discussion in the last few months in the programmatic world

 

What is “Cookieless”?

There recently has been quite a stir in the world of online advertising due to Google’s decision to stop storing third-party cookies in its Chrome browser. Previously, other browsers had already made this decision, such as Firefox or Safari, but due to their less popular relevance in the market, it didn’t have such an impact or consequences. These decisions originate in the growing concern and regulation on the protection of user data,

 

What are third-party cookies?

Cookies are files that are generated when visiting a website and are stored in the user’s browser.

They are cookies collected in a domain, and are used, among other things, to later be synchronised and categorised, used in a different site. Third-party cookies are used to create audience segments of related users according to their browsing patterns and the sites they have visited, thus allowing the possibility of influencing with advertisements related to their personal tastes or needs.

 

Why is it a problem?

Among other issues, the main effects include:

  • Eliminating the ability to store third-party cookies, the ability to segment advertising based on user segments globally is removed.
  • The ability to apply an advertising frequency correctly is also removed.
  • Attribution of conversions could also be incomplete.

 

Possible options

Context segmentation: this type of segmentation has been used alternatively, or even at the same time, to user segments. It is based on the categorisation of the web pages that the user is visiting about different themes, in order to introduce advertisements with similar topics.

There are two other types of cookies that may continue to be used:

  • First-party cookies: First-party cookies are those that an advertiser collects from its own means (for example, its website), stores it and creates segments with it to use it for advertising purposes.
  • Second party cookies: Second-party data is the first party data that a company shares with another to be later used in campaigns.

There are other types of solutions that are being created by main players in the market:

Google’s proposal is called Privacy Sandbox: instead of using third-party cookies, the idea is that user data is stored in the browser, through APIs, to create groups or cohorts based on interests, maintaining the anonymity of users. Microsoft has also designed a similar proposal.

There are other solutions based on identifiers of personal information, but in order for this identifier to be universal, the parties involved must agree and share their information.

In the mobile market, it could be easier to continue categorising users based on their device ID, associated with an email account, without the need for cookies.

Meanwhile, major players in the market (Google, Amazon, Facebook, Twitter) may use private data within their ecosystem, but they may not be used in those of others.

 

What will happen?

It is a complex problem that is leading to the design and testing of different solutions. We still must wait to see in the remainder of the year which will be the definitive alternative that will prevail in the market. The objective is always to have a high segmentation capacity and thus be able to continue offering users relevant and quality advertising, based on their own interests.

 

– Mario Diez

 

To continue reading our articles, click here.