As the first quarter of 2024 dawns, the long-anticipated deprecation of third-party tracking through cookies by Google Chrome will become a reality. This seismic shift will compel publishers and brands to pivot towards alternative methods for gathering consumer data, with a notable focus on direct consumer interactions, commonly referred to as first-party data. While many publishers and brands are yet to finalize their strategies, a wave of companies is expected to flood the market with first-party data-gathering solutions. Over time, the landscape will likely settle with the emergence of best-in-class solutions.
The Evolution of Publisher Strategies:
With the demise of third-party cookies, publishers are set to undergo a profound transformation in their data strategies. Understanding the importance of first-party data and its exchange in the open market will become a priority, forcing a departure from traditional reliance on Data Service Providers (DSPs).
Addressing Mistrust through Data Verification:
Historically, a significant mistrust has prevailed between data gathered by publishers and that collected by third-party Data Management Platforms (DMPs). In response to this challenge, many data verification companies are expected to emerge, ensuring the proper sanitization of data and making it ready for utilization by DSPs.
Unlocking New Revenue Streams:
As publishers delve into harnessing the data gleaned from their audiences, a novel revenue stream will materialize. Although the current data portion may be modest compared to the overall audience size, the sheer number of data points becomes a valuable asset. The potential to monetize this data in various exchanges, such as Liveramp and ID5, is poised to become a significant source of revenue.
Informed Advertising Strategies:
Understanding one’s audience, similar to knowing customers in a retail setting, will take center stage. Publishers will move away from the traditional guessing game regarding which brands to appeal to on their websites. Armed with insights into audience purchase intent, publishers can seamlessly approach the right advertisers, leading to a more informed advertising approach.
Direct Collaboration and Diversification:
The lack of direct sales teams among many publishers, stemming from uncertainty about user preferences, is expected to change. With a clearer understanding of audience preferences, publishers can now justify building direct ad sales teams. Consequently, the coming year is predicted to witness a surge in direct collaborations between advertisers and publishers.
Advertiser Shift to Contextual Ad Targeting:
In response to the cookie deprecation, advertisers are anticipated to revert to contextual ad targeting. While platforms like Facebook, Instagram, Google, and YouTube may experience a temporary influx of budgets, publishers will likely popularize verifiable data audiences through case studies. This, in turn, will encourage advertisers to diversify their budgets across a broader spectrum.
Efficient User Targeting through Publisher-Provided Data:
The current practice of integrating various ID services in the programmatic stack, in the hope of finding user matches is deemed inefficient. A paradigm shift is on the horizon, with a call to cease this practice and initiate user targeting exclusively through publisher-provided data.
As we navigate through the uncharted waters of a cookie-free digital landscape, 2024 promises a landscape redefined by transparency, informed strategies, and the dynamic evolution of publisher-adviser relationships. The cookie’s depreciation is not merely an end but a catalyst for the dawn of a new era in digital advertising.
