RIP Cookies- Celtra’s Stance on A Cookieless Future
The onslaught of changes in data regulations and laws in recent years has thrown marketers into the deep end to adapt their approaches towards a privacy-compliant future. These changes have also brought cookies to a not-so-tragic end. Safari and Firefox have already deprecated the use of 3rd party cookies, while Chrome is still allowing tracking as they have major market share- therefore will still be using them until Google finally blocks it in 2024. This sets the scene, but before we get into the nitty-gritty, let’s get back to basics.
What is a cookie?
Cookies are small blocks of data that are stored in a browser and have no functionalities by themselves. They are used by websites to remember information about the user, such as their preferences or login credentials. This information can then be used to enhance the user’s experience on the website or to provide personalized content and advertisements. A third-party cookie is a type of web cookie that is created by a domain other than the one the user is visiting. Those are used to track user behavior across multiple different websites and provide targeted ads. The cookie has quite a short lifespan, usually lasting up to 30 days after it was placed.
Why is it dying?
The main cookie-killer is the industry shift towards a privacy-friendly online environment, with big tech companies and major browsers taking steps to ensure better security and privacy for users. Data regulation laws such as GDPR and CCPA have also drastically increased the emphasis on user privacy, giving consumers more control over how their data is collected and used. This means that mobile advertisers need to obtain user consent before collecting their data via 3rd-party cookies. They’re also now required to provide full transparency on how their data will be used.
The use of third-party cookies, which are often used to track user behavior and provide targeted ads, is becoming more restricted. Apple’s recent update to iOS14 has made it more difficult for advertisers to track user behavior on mobile devices, which has further impacted the effectiveness of mobile advertising campaigns. Historically, users have very little visibility into what data is being collected through cookies which is why these trust and privacy issues have come about.
As brands, publishers, and platforms move away from relying on cookies, Celtra will continue to enable our clients to create innovative ad products which leverage the consumer-owned data they can access.
Our stance on the matter
With the death of the 3rd party cookie, Celtra predicts that more closed ecosystems will be on the rise and more proprietary solutions will be developed by the big players like Google & Facebook. We also expect publishers to lean into privacy-enhancing technologies like data clean rooms and other authentication solutions. Instead of leveraging cookies, Celtra will continue to look into ways we can enhance the creative experience regardless of the serving or decisioning mechanism.
This keeps us future-proof as we continue to develop technology that is 100% compatible within these new types of solutions. At Celtra we believe that targeting will shift from predominantly behavioral to interest targeting where various contextual signals are used in combination with AI and machine learning to model the user’s shopping intent, interest, demographic details etc. Celtra is already providing built-in contextual signals such as location, weather, time and is looking to support further external signals used by our clients and directly integrate with selected vendors. Based on those signals Celtra will continue to provide on-brand personalized ad experiences and recommend the most relevant content.