The End of Third-Party Cookies: Navigating a New Advertising Landscape

The advertising industry is undergoing a significant transformation as major browser Google Chrome phase out third-party cookies. They already disappeared on other browsers as Safari and Firefox.
These cookies, which have been the backbone of online advertising for decades, allow advertisers to track user behavior across websites and serve them targeted ads. However, concerns about user privacy have led to increased scrutiny of third-party cookies, and browsers are taking steps to limit their use.

By
Tom Alizon
11/1/2024

The Impact of Third-Party Cookie Deletion

The elimination of third-party cookies will have a profound impact on the advertising landscape. Advertisers will face challenges in reaching their target audiences and measuring the effectiveness of their campaigns. This could lead to less effective advertising, reduced ROI, and potential revenue losses for advertisers.

Publishers, who rely on advertising revenue to support their content, will also be affected by the loss of third-party cookies. They may have to find new ways to monetize their websites, such as relying on subscription models or selling more personalized advertising options.

Emerging Alternatives to Third-Party Cookies

In response to the impending demise of third-party cookies, the advertising industry is exploring alternative methods for tracking and targeting users. These methods aim to balance user privacy with the need for effective advertising.

Privacy-focused solutions:

  • First-party data: Advertisers are increasingly focusing on collecting and using first-party data, which is directly obtained from their own websites or apps. This data can be used to build user profiles and target ads more effectively.
  • Contextual targeting: This method of advertising matches ads to the content of the webpage a user is visiting. It doesn't rely on tracking user behavior across websites, and it can be more relevant to users' interests.
  • Attribution modeling: This technique uses a variety of data sources, including first-party data, to determine which ads are most effective in driving conversions. This helps advertisers allocate their budgets more efficiently.

Technology solutions:

  • Topics API: Developed by Google, Topics API allows advertisers to target ads based on users' interests, without tracking their individual browsing behavior.
  • IDs: Some actors are developing ID solutions, whether deterministic or probabilistic, to identify users on the different sites of their network.
  • Encrypted advertising: This method encrypts user data to protect their privacy while still allowing advertisers to track their behavior.

The future of advertising

The transition away from third-party cookies will require a fundamental shift in how advertisers operate. They will need to adapt to new technologies and data privacy regulations to continue delivering effective campaigns. Publishers will also need to find new ways to monetize their content in the absence of third-party cookies.

While the changes may pose challenges, they also present opportunities for innovation and creativity in the advertising industry. By embracing privacy-focused solutions and leveraging new technologies, advertisers can create more relevant and engaging ad experiences for users. Publishers can also find new ways to provide valuable content and services to their audiences while ensuring a sustainable business model.

The end of third-party cookies marks a turning point for the advertising industry. As the industry adapts to these changes, it will be essential to prioritize both user privacy and effective advertising. Through innovation and collaboration, the advertising landscape can evolve into a more transparent, accountable, and user-centric ecosystem.

At Wizenco, in collaboration with Culture G, programmatic management of the New Vega group, we also anticipate the end of third-party cookies on Chrome.

Regarding targeting: Not much change, we firmly believe in context targeting and this will not be impacted by the disappearance.

Regarding tracking: We believe in ID solutions and are currently developing partnerships with the main players in this market. This will allow us to continue to control advertising pressure on targets, as well as the retargeting of visitors to our media.