A new world order

Advertisers are looking at new ways to collect & measure consumer data

January 15, 2024 09:41 IST

Experts say that without cookies, targeting audiences based on detailed, cross-site behaviour will become much harder

You know this story reasonably well and the reason for it too: Say you’re searching online for the perfect puffer down jacket for the next trekking holiday but hold off on the purchase after clicking on the pictures of one or two you liked. You might leave the pages but the jackets won’t leave you alone and will pop up on your screen at every opportunity.

Your days of getting spooked are long gone because you know this is thanks to third-party cookies — snippets of data used to store information on web browsers to track browsers’ moves — widely considered the linchpin of digital advertising.

But 2024 promises to be different. Earlier this month, Google said that its Chrome browser, patronised by over 60% of internet users, has initiated the testing phase for Tracking Protection. This feature aims to curtail cross-site tracking by automatically restricting website access to third-party cookies. The company is progressively introducing this feature to 1% of Chrome users globally, with the goal being to completely phase out the use of third-party cookies by the second half of the year.

As Mozilla Firefox and Apple Safari have already implemented similar measures, Chrome’s move will truly signal the demise of third-party cookies.

How are marketers gearing up for that day? Experts say that without cookies, targeting audiences based on detailed, cross-site behaviour will become much harder. Measuring the effectiveness of ad campaigns could also become trickier. This could lead to a crucial dilemma – where must they look to find alternative, privacy-first ways to collect data so that targeting and measurement are not compromised.

The primary challenge, says Sachin Kumar, founder, Bottle Openers, is that as third-party cookies go out, first-party data will become the Holy Grail for marketers. “However, this transition isn’t without its challenges. Understanding user behaviour, targeted advertising, and measuring ad performance could become more difficult,” he adds.

First-party data, or data collected directly by a website once a user visits it, could be a treasure trove of information for brands. “First-party data collection is typically based on explicit user consent. With increasing concerns about privacy, relying on first-party data will also solve the problem of compliance while respecting user preferences and choices,” says Sumon K Chakrabarti, co-founder & CEO, Buffalo Soldiers.

Basic information collected through account sign ups, sales and subscriptions would thus be of help. Integrating customer relationship management (CRM) systems will also become crucial for a comprehensive understanding of user behaviour, adds Chakrabarti.
Advertisers might also form partnerships to share aggregated and anonymised data, allowing for better targeting and measurement.

Another less intrusive alternative is contextual targeting, through analysis of the content of websites and showing relevant ads. For example, in the aforementioned scenario, while a consumer would not get ads related to the particular jacket after viewing it on one website, she might still get ads for winter wear in general while she’s on another, searching for hotels at the hill station.

Solutions from Goliaths

Big daddies know the issues and are happy to help.

Shlok Hari, group head, media, Sociowash, cites Meta’s Conversions API, which is designed to create a direct connection between marketing data (from a server, website platform, app or CRM) and Meta. “Examples of marketing data include website events, app events, offline conversions and messaging events. This data enables ad personalisation, optimisation and measurement across Meta technologies so that ads are shown to people who are more likely to find them relevant,” the company said.
Google has also introduced its own solution, the Privacy Sandbox. Says Anthony Chavez, VP, Privacy Sandbox, Google, “With the Privacy Sandbox, we’re taking a responsible approach to phasing out third-party cookies in Chrome. We’ve built new tools for sites that support key use cases, and provided time for developers to make the transition.”

The suite of tools includes the Federated Learning of Cohorts, which groups users with similar interests based on on-device data; and Topics API, which allows websites to share broad interest categories without revealing individual browsing history.

In other words, it’s not going to be all doom and gloom. In fact, as the change is being driven by tighter data privacy rules and changing consumer sentiment about personal data usage, brands have the opportunity to build more transparent and trust-based relationships with their audience, say experts. “Transparent data policies, opt-in mechanisms, and robust security measures will be essential to address and allay privacy apprehensions,” sums up Gautam Madhavan, founder and CEO, Mad Influence.