Only 8% of Advertisers Prepared for a Cookie Less Future: Data Reveals

A new study by Aroscop and Brand Equity shed light on advertisers’, technology providers’, and marketers’ preparedness for a cookieless future

A new study by Aroscop and Brand Equity that polled over 450 marketers, advertisers, publishers, and technology providers, found that brands are yet to truly embrace a cookieless future. This is further evidenced by the fact that only 22% of the respondents believe that a cookieless future may have a severe impact on brand building.

Most respondents said that techniques like frequency capping, personalization, behavioral targeting, and retargeting would experience the brunt of the shift to cookieless marketing. However, the study found that only 8% of the respondents have deployed alternate solutions to prepare for the shift. 35% of respondents stated that they are actively looking out for solutions better adapted for cookieless marketing.

Also read: What’s Behind the Cookie-less Revolution? Dynata Joins Forces With Google Ads Data Hub

Among the brands, only 13% are actively leveraging their first-party data, while 64% plan to do so in the next six months. The study also revealed that 66% of agencies believe that their clients will deploy first-party data to create better advertising campaigns in the next six months. Similarly, 67% of publishers are also expected to embrace first-party data to drive better advertising outcomes.

Speaking about opportunities and threats, advertising agencies in the survey indicated that loss of clients, diminishing profits, and inability to acquire new clients are their top concerns as they head into 2021.

The study also found that agencies and technology providers shared some consensus on existing technological capabilities. 41% of the agencies surveyed and 30% of technology providers agree that their existing solutions are capable of delivering similar results as third-party cookies.

Top Challenges Facing Brands as They Inch Closer To a Post-Cookie Era

The study identified five challenges that brands must tackle as we head towards a post-cookie future. Here is a quick look at these challenges:

1. Personalization: Advertisers have long relied on third-party cookies to deliver personalized content. By tapping into user search history to uncover search behavior, advertisers were able to personalize the experience for users. 52% of all survey respondents indicated that they predict personalization to be severely impacted after third-party cookies are obsolete.
2. Frequency Capping: Frequency capping helps advertisers manage the ads shown across websites by tapping a user ID. The user ID identified through third-party cookies helps advertisers determine if an ad is to be delivered. Without third-party cookies, advertisers could have a tough time managing frequency of ads being displayed to a user across the web.

Respondents expect that frequency capping could dramatically change in the post-cookie era. 54% of respondents stated that they expect drastic changes in the way they will execute ad delivery. It is interesting to note, however, that technology providers surveyed were most worried about frequency capping. 72% said that they expect frequency capping to change forever in a cookie-less world.

1. Behavioral Targeting: Behavioral targeting today is fueled by third-party cookies, and advertisers collect data on user behavior to track and target prospects. While regulations like GDPR and CCPA have prepared advertisers to a certain extent, 62% of brands believe that behavioral targeting will be majorly impacted.

Also read: Marketers Ignore Data Quality: Nielsen Study Reveals

1. Retargeting: Retargeting was often considered one of the most effective conversion techniques, with brands stating that over 70% of consumers could be converted using retargeting campaigns. Similarly, Google Remarketing campaigns are said to increase conversion rates by 161%. Both of these approaches are rooted in third-party data. Over 50% of marketers, agencies, and technology providers foresee a transformation underway for retargeting campaigns.
2. Customer Acquisition: The report found that the sales cycle has become longer for both B2B and B2C organizations. Acquiring customers is no longer about cold emails and offers – but is about guiding the buyer through the sales funnel with relevant content across platforms. However, only 28% of the survey respondents said they expect major changes in the way brands acquire customers.

Preparing for a Cookieless Future: What’s Next?

Without third-party cookies, advertisers and brands will need to rely on first-party data that publishers control on their websites. As we get closer to a cookieless future, publishers are building their own walled gardens to provide advertisers with accurate data. Considering how rich data will become scarcer, publishers will be in a unique position to connect advertisers with high-intent customers.

Also read: Data Privacy and Marketing: Experts Share How to Fix Customer Trust and Win Over Audiences

The report predicts a private marketplace (PMP) advertising environment will become more common amongst publishers. It will act as a digital marketplace where advertisers can buy premium inventory for their advertisements. This model has previously been successful for companies like Amazon and TripAdvisor, where advertisers are offered a suite of tools and services to target high-intent customers. The idea behind moving to PMP advertising is data quality assurance. It reduces the chances of ad fraud, enhances brand safety, and facilitates more accurate targeting. It would be an ideal win-win solution for all stakeholders in the digital advertising and marketing space. It will be interesting to see how technology providers and agencies adapt their offerings and services to cater to the new demands of advertising in a cookieless world.