Trust, not cookies: Download LiveRamp’s e-book to prepare for the cookieless future
There’s no denying that the 2020 pandemic has resulted in some unexpected consequences for the digital marketing ecosystem. Publishers have enjoyed record traffic as readers hunt down the latest coronavirus news, while simultaneously being faced with declining CPMs and reduced advertising spend as CMOs slash budgets and pull campaigns in an attempt to weather the COVID-19 storm.
But alongside these relentless challenges, there is another storm brewing just under the surface: the demise of the third-party cookie. A wave of reforms, including the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA) and various browser- and device-based privacy initiatives from Google and Apple, among others, are forcing marketers and publishers to contemplate a future without third-party cookies and other common identifiers (e.g., mobile IDs).
It’s tempting to look at cookie depreciation as something to fear. After all, without cookies, traditional data-driven workflows including retargeting, site personalisation and audience insights simply won’t work.
But if 2020 has taught us anything, it’s that change, however uncomfortable, can be a forcing function for real and necessary innovation, often at an accelerated pace. The industry has been enjoying the sugar rush for far too long: it’s finally time to realise that when it comes to third-party cookies, there’s no such thing as a free lunch.
Cookies are already past their sell-by date
While ‘the death of the cookie’ makes a great headline, the truth is, cookies have been on their way out of the digital door for years. Safari and Firefox, which comprise 40% of browser traffic, are already cookieless.
Google will phase out third-party cookies in Chrome, the world’s most popular browser, by January 2022. Their reasoning? According to Google: “Users are demanding greater privacy – including transparency, choice and control over how their data is used – and it’s clear the web ecosystem needs to evolve to meet these increasing demands.”
Let’s be honest: the cookie was always an imperfect identifier with a handful of limitations. Its primary flaws include a lack of transparency and inconsistency, and an inability to work across every channel, such as mobile and CTV. Additionally, cookies simply do not put the consumer first. Many people were unaware of the value exchange that third-party cookies provided by enabling consumers to access free content in exchange for using their anonymous data to inform advertising. The entire system was too opaque, leading to a loss of trust. It’s clear the third-party cookie has already well outlived its usefulness, and it’s time to find a better way forward.
The new online experience must be privacy-focused, transparent and offer consumers ongoing control of permission and preferences for how data is collected and used. And the way we’ll get there, in part, is to prioritize publisher-supported advertising solutions that clearly articulate the value exchange to the consumer. Such solutions, when purposefully designed, will empower the ecosystem to redesign the value exchange, and continue to deliver meaningful experiences to consumers, without sacrificing consent or privacy.
We’re at an exciting moment in the history of digital advertising. The end of third-party cookies creates an opportunity to build a better ecosystem for everyone. As explained in greater detail in LiveRamp’s latest e-book, change is inevitable. Embracing this new ecosystem built on trust will be a win-win-win scenario for individuals, brands and publishers.
The new vision
So what does this trusted ecosystem look like? LiveRamp’s e-book explains how the ‘new normal’ will be rooted in first-party authentication, where users consent to provide their data, such as an email address or phone number, in exchange for valuable content and experiences.
First-party authentication has the potential to supercharge growth for publishers, providing precision, increased CPMs and boosted consumer trust. Publishers that are quick to adopt these types of authentication strategies will gain a critical first-mover advantage. They’ll be able to preserve relationships with customers, while simultaneously providing them with a heightened, personalised experience: a clear competitive advantage.
Additionally, first-party authentication involves active, participatory consent. It allows publishers and advertisers to receive a clear signal that an active value exchange is occurring. This is great news for individuals, because it provides greater transparency and dynamic preferences for control over their data.
For brands, activating first-party data provides seamless customer experiences across a wide range of channels. No more guesswork, no more wasted advertising dollars. First-party authentication is the real deal: accurate and transparent. In a tough economy and a global pandemic where every ad dollar is being scrutinised, this is business critical.
In order for this transformation to take place, the advertising industry needs to cooperate to build a new ecosystem rooted in consumer trust. This monumental task underscores the need for interoperable and neutral players, like LiveRamp. In fact, LiveRamp has committed to working with every sector of the industry to make this new vision a reality.
This vision isn’t a ‘nice to have’; it’s imperative for every single area of the digital advertising industry. The clock is ticking when it comes to building this new infrastructure. If we don’t move swiftly, we risk losing the ability to power a variety of seamless customer experiences.
So what’s next? The adtech industry has a huge opportunity and responsibility to reframe the conversation and build a new advertising infrastructure.
Ultimately, the entire digital advertising ecosystem needs an end-to-end solution that brings together brands, publishers, and individuals through trusted value exchanges, and now is the time to finally make it happen.
To learn what must come next for digital advertising beyond cookies, download LiveRamp’s e-book Addressability in a Cookieless World.