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Brands Trying To Cut-Off Cookies

Update from the future: Google extends the use of third-party cookies once again. Read more about it here.

Ever since the announcement of third-party cookies becoming a part of history soon, advertisers all over the world are working hard to find alternatives that won’t harm their sales and performance.

A recent study conducted by Advertiser Perception found a significant decline in the use of third-party cookies, and it seems that advertisers invested more in first-party data and other alternatives.

Overall, in the period between summer and fall, cookie usage dropped by 10 percent. Meanwhile, 70% of respondents used first-party data to target and measure their campaigns. They also used cohort or context-based approaches more often.

Advertisers expect performance to drop by an average of 17% when cookies are deprecated next year, a change from May when a 27% drop was expected. The survey results suggest that half of the respondents will switch their demand-side provider if performance falls by more than 20%.

The shift in the industry is noticeable, as we’re all slowly saying goodbye to third-party cookies and looking for alternatives. However, 81% of respondent companies worry about the impact the loss of cookies will have on their business.

Brands Looking For Alternatives

In search of a safe space, brands are shifting their focus towards social, connected TV and digital video, assuming that display advertising will be the most affected by the cookie deprecation. Also, as brands will reassess their priorities, we are expected to see a rise in the adoption of first-party data.

Some advertisers, like Apple, for example, are already contending with changes to identifiers that could help in preparation for the loss of the beloved cookie.

Apple made its mobile identifier for advertisers, and Google is planning to implement a similar privacy model for Android. Although, with Google, we could wait for a couple of years for that to take off.

According to Advertiser Perceptions, 49%useertisers still use IDFA when they can get consent from users, and 41% do the same for Google ID on Android.

More Than 80 % of Companies Still use Cookies

On the other hand, another study conducted by the tech company Twilio shows that 81% of companies still depend a lot on third-party cookies. Their research also found that 55% of companies weren’t fully prepared for a cookieless world while 42% think that the changes ahead will lead to a lower ROI.

81% of companies are still substantially dependent on third-party cookies. — Adweek (@Adweek) April 11, 2022

Still Lost In The Dark

A number of cookie alternatives are slowly creeping into the daily life of advertisers, but none of those are proven to work yet.

Google recently started testing Topics, which offers data on user interests for ad targeting, but it too has earned a level of skepticism.

The market is still shifting, so there is some room for growth, innovation and partnerships.

However, if you are a small business and hugely depend on big platforms like Google and Facebook for your ad targeting, you should start accommodating as soon as possible.

Even though the third-party cookie will die out in a year or so, now is the time to start finding alternatives and start the preparations.

There are some options on how to tackle the removal of third-party cookies, except first-party cookies. Check them out here.

SOUND 🆙 Listen to @paulbennett, Business Growth Partner, discuss the number of browsers that will reject third-party cookies by 2023 and the impact this will have for advertisers. Register for the next Embracing A Cookieless Future event here: — Havas Media UK (@HavasMediaUK) April 12, 2022