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Is this the end of the cookie era?

Is this the end of the cookie era? image

Lukasz Szkobel, our Head of Display, sheds some light on the possible scenarios.

The end of the cookie era is approaching – we are all aware of it.

However, we are still discussing the possible solutions for advertisers, and nothing is set in stone yet.  In January 2022, we will face new rules that have been imposed on us by browser manufacturers, and Google will join them next year.

One thing is sure—they will kill third-party cookies.

It means that brands’ tracking capabilities will become limited. It is becoming rather apparent that we will return to probabilistic and contextual targeting, with some players also relying on slightly shady fingerprinting techniques.

Google Privacy Sandbox

Google suggested its Privacy Sandbox as a solution shortly after the decision to kill third-party cookies was announced. Using it will make it possible for marketers to continue retrieving data on their ad performance (conversion) and attribution.

Theoretically, this would help preserve the user’s privacy on the web, and they will transfer the data itself using anonymous signals with an API.

Instead of individual identifiers (cookies), marketers will gather data via groups of users with common interests.

Here is where FLOC comes into play.

What is FLOC?

FLOC is a new approach to achieve the above grouping I mentioned.

It can reach people with relevant content and ads by targeting large groups of people with similar interests. An algorithmic process in the browser creates cohorts based on the websites visited by users in the last few days.

This approach effectively hides individual entities “in the crowd” and maintains the privacy of a person’s online history in the browser. Based on the cohorts built, Google ad exchange or other DSPs will receive cohort ID, to which it will be possible to target the ads.

Based on the results of internal tests presented, Google says that their proposal can replace cookies and measure conversions with 95% efficiency compared to the current tracking model.’

MediaGroup Worldwide will participate in the beta test—these happen in Q2 2021. Due to the GDPR, the tests will not be able to take place in Europe. Fortunately, given we are a global company, we will gain experience in other markets and provide our clients with the best possible results.

Hopefully, they will further refine GDPR by the time we need solutions.

MediaGroup keeps exploring all the possible ways and keeps an eye on updates. If you would like to hear more from us, please get in touch through our contact form.

 

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