The Impact of Eliminating Cookies on Digital Marketing Strategies
The Center for Data Innovation recently hosted a panel discussion on the impact of changing technologies on targeted online advertising in Europe. Ben Mueller, Senior Policy Analyst at the Center, moderated the event, which took place on November 18, 2021, from 10:00 AM to 11:00 AM EDT / 3:00 PM to 4:00 PM GMT.
The panel featured speakers such as Eric Seufert, Analyst at Mobile Dev Memo Content, Alan Chapell, President of Chapell & Associates, and Benoît Oberlé, CEO of Sirdata. The discussion focused on how online ads work and the data they use, addressing the value that targeted online advertising provides for advertisers and consumers.
A significant topic of discussion was the phase-out of third-party cookies by web browsers and restricted access to device IDs by mobile operating systems. These changes will significantly impact online advertising in Europe by reducing the availability of cross-site tracking data and limiting user-level targeting and attribution.
Impact on Businesses:
As browsers like Chrome phase out third-party cookies by 2025, businesses will face a loss of traditional third-party cookie tracking for ad personalization and attribution. This disruption will make marketing decisions less data-driven and force marketers to adapt quickly.
To counter this, businesses must pivot to privacy-compliant, explicit first-party data collection strategies that accurately capture consent and create measurable customer journeys. This approach emphasizes strategically collected data rather than broad, imprecise tracking.
The enforcement of frameworks like Google Consent Mode v2 across the EU requires businesses to explicitly collect and share users’ consent signals about ad personalization. Failure to comply leads to significant data gaps, loss of audience segments, remarketing limitations, and poorer campaign performance.
The reduced mobile tracking due to OS changes, such as Apple’s App Tracking Transparency (ATT), creates blind spots in conversion data and limits mobile ad targeting and measurement. Advertisers need to move away from long-term behavioral data and granular user profiles toward cohort-based or contextual advertising approaches embedded in privacy-focused frameworks like Google’s Privacy Sandbox.
Impact on Consumers:
Consumers will experience greater privacy and control, with fewer intrusive cross-site tracking cookies and clearer transparency about how their data is used, conforming with GDPR and other regulations. They gain more control over consent and data sharing.
Potential changes in ad relevance may occur without traditional third-party cookie tracking and device ID access. Consumers may receive less hyper-targeted ads based on their past browsing and app usage, and advertising will become more contextually based and reliant on consented first-party data.
Improved experience with consent management is expected through tools like Consent Management Platforms, which automate and clarify consent processes, reducing unwanted tracking and aligning ads with user preferences.
Summary Table
| Aspect | Businesses | Consumers | |-------------------------|-----------------------------------------|---------------------------------------| | Tracking capabilities | Loss of cross-site tracking; reliance on first-party data and consent-compliant methods | Less third-party tracking; more control over data sharing and consent| | Ad targeting & attribution | Attribution models disrupted; less accurate targeting; shift to cohort/contextual advertising | Ads possibly less personalized but more privacy-friendly | | Compliance burden | Must implement consent frameworks (e.g., Consent Mode v2) to avoid data loss and fines | Benefit from improved transparency and control over personal data | | Mobile tracking | Loss of device ID targeting on iOS/Android limits conversion tracking and attribution | Fewer apps tracking them without explicit opt-in |
In conclusion, the phase-out and access changes lead to a privacy-first, user-consent-driven online advertising ecosystem in Europe, requiring businesses to invest in new data strategies and consent frameworks while offering consumers enhanced privacy and transparency. The audience is encouraged to join the discussion on Twitter using the hashtag #our website. The Twitter handle for the Center for Data Innovation is @DataInnovation.
References: [1] Seufert, E. (2021). The End of Third-Party Cookies: What it Means for Marketers and Publishers. Mobile Dev Memo Content. [2] Oberlé, B. (2021). The Impact of Google's Privacy Sandbox on Online Advertising. Sirdata. [3] Chapell, A. (2021). The Impact of Apple's App Tracking Transparency on Digital Advertising. Chapell & Associates. [4] Google (2021). Google Consent Mode v2. Google Developers. [5] Mueller, B. (2021). The Future of Online Advertising: A Privacy-First Approach. Center for Data Innovation.
- The ongoing changes in technology, such as the phase-out of third-party cookies and restricted access to device IDs, have sparked a need for AI-driven innovation in data collection and management in the realm of business, especially in targeted online advertising.
- As a result of enforcing frameworks like Google Consent Mode v2 across Europe, businesses might face fines and data gaps if they fail to comply with data privacy policies, emphasizing the importance of explicit first-party data collection.
- Technology's role in shaping business and financing, particularly in the adaptation to privacy-compliant strategies, has critical implications for the overall success and sustainability of the targeted online advertising industry.
