Google’s latest announcement on third-party cookies shifts the focus to user choice, introducing an experience similar to Apple’s App Tracking Transparency. As advertisers brace for this accelerated change, strategies to adapt in a post-cookie world become paramount.
Google recently announced changes to their plans to deprecate third-party cookies (3PCs) on their Chrome browser:
“…we are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.”
Emphasis added
Reading these proposed changes has led to many interpretations, including the headline “Google cancels plans to kill off cookies for advertisers.” My careful reading of this announcement leads me to another conclusion: while Google will not deprecate cookies, a workflow will be introduced that allows users to turn off cross-site tracking via 3PCs more easily, similar to Apple’s App Tracking Transparency. If this is the case, we may see an accelerated time frame where users may start to opt out of 3PCs sooner than the previously stated 3PC deprecation plans.
The bottom line is that the advertising industry still needs to prepare for loss of addressability of some cohort of users via 3PCs. This will still be a massive shift that leaves brands wondering: What can we do today to ensure we’re prepared for the post-third-party cookie world?
Collecting Zero- and First-Party Data
Brands are likely already using both zero- and first-party data in some capacity for personalization and targeting purposes. Zero-party data is solicited directly from users and generally captured in the form of personally identifiable information (PPI) such as email, address, and phone number. Zero-party data can’t currently be onboarded to Google’s Protected Audience API (PAAPI) or other Privacy Sandbox solutions. Since one-to-one targeting is unavailable through PAAPI, zero-party data should be part of a broader, identification-based targeting strategy encompassing additional retargeting and personalization strategies.
With first-party data–the data passively captured from site visitors– you can create interest groups within PAAPI. For instance, if a user visits a page for petite women’s jeans, they may be added to a “petite clothing” interest group, enabling brands and DSPs to identify and target these user segments in subsequent auctions. It’s important to note that the current segmentation will be the same for the API, as no changes are expected to be made that will impact the user experience.
If it’s not a priority already, brands need to start collecting and storing zero-party data in customer relationship management (CRM) or customer data platform (CDP) systems.
Testing Emerging Tactics
The most prominent emerging solution is Google’s Privacy Sandbox, which aims to create a more private internet by reducing cross-app and cross-site tracking, including blocking covert tracking while keeping online content free.
This initiative includes Google phasing out 3PCs and creating new web standards to create technology that protects user privacy while still giving advertisers the tools needed to develop well-targeted campaigns.
While testing is underway, results from the initial trial involving 1% of Google Chrome users indicate that there is still a long journey ahead before completely phasing out 3PCs.
Evaluating Alternative Identifiers
Deterministic IDs are created via authenticated registration events and rely on a user’s personal identifiable information (PII). Active efforts to collect zero-party data, especially email addresses, are essential because email addresses are the primary piece of PII that creates the most deterministic IDs.
With an email address and a deterministic ID, you can track a user’s first-party behavioral and interest data. For instance, if a user adds items to their cart but doesn’t complete the purchase, their activity syncs with your CRM. You can then automatically send an abandoned cart email or retarget them with relevant ads using a DSP that supports deterministic ID technology.
However, because deterministic IDs rely on PII, they’re expected to be limited in scale availability. Users must share their email information with publishers who sell advertising space on their website(s) or app(s). That said, deterministic IDs are often highly accurate because the information comes directly from users, which is where incentives can come into play.
Probabilistic IDs rely on multiple cross-channel signals to approximate user identity without collecting PII from zero-party data. They may use the IP address, screen resolution, device type, and operating system.
Because probabilistic IDs are not reliant on PII, the data involved is much easier to collect and more widely available. Due to this approach, probabilistic IDs are often less accurate and have a lower persistence over time due to browser-readable signals.
Key Questions to Assess Ad Providers’ Readiness
While testing Privacy Sandbox APIs and alternative identifiers is limited by the current lack of market adoption and, in some cases, technical readiness, there are ways to gauge whether your current or future ad provider is prepared to help you navigate these tactics in a post-3PC world. To ensure your ad provider is ready to help you as 3PC addressability is lost, you can ask these questions:
- Have you been involved in the W3C and the development of the Privacy Sandbox API specs?
- To date, what level of testing have you done on the Privacy Sandbox APIs?
- Which APIs have been tested?
- How will a loss in 3PC impact your attribution reporting?
- Which deterministic and/or probabilistic IDs do you support today and why?
- Which do you plan to support in the future?
- Which systems and functionalities are 3PC dependent?
- How are you future-proofing these systems?
- What systems will be drastically impacted or not future-proof?
- What approach(es) will you take to future-proof your technology?
Potential Red Flags When Choosing an Ad Provider
There are a few potential red flags you should watch out for when assessing ad providers, including, but not limited to:
- They’re unfamiliar with the extent of Google’s shift away from 3PCs or dismiss concerns about the potential severity of impact.
- They don’t already have a plan to account for the loss of reachable audiences caused by Google’s shift away from 3PCs.
- Collecting and maintaining user privacy and consent aren’t core considerations in their strategies.
- They don’t have methods prepared to leverage first- and zero-party data for retargeting, interest-based targeting, or full-funnel campaigns.
- They can’t provide specifics about campaign attribution, performance tracking, and optimization.
While the future state of retargeting following Google’s shift away from 3PCs is still evolving, it’s unlikely that a single tactic will emerge as the solution. Instead, advertisers will need to leverage each of these tactics in concert to maximize the value of their retargeting efforts.