Despite the latest delay from Google, when it comes to the demise of the third-party cookie, it is a question of not ‘if’ but ‘when’. While the cookie has for many years been the bedrock on which online advertising is built, its phasing out should be welcome news to advertisers and publishers alike.
While third-party data allows advertisers to target a wide range of audience segments, it lacks the precision that modern marketing demands. First-party data, on the other hand, offers a scalable solution to the loss of the cookie that allows online campaigns to attain maximum reach while addressing audiences at a more granular level.
So, when it comes to media buying, working with first-party data solutions will guarantee advertisers accurate targeting at scale. In the post-cookie landscape, publishers are at the forefront of first-party data solutions.
Publishers are, in fact, in a strong position to collect first-party data thanks to their direct relationship with their audience. User IDs, on-site activity and sign-up details can be gained with user consent and provide advertisers with rich audience insight.
Despite the wealth of publisher first-party data available, it is reported that as much as 78 per cent of brands in Asia Pacific and Japan rely on third-party data for current marketing strategies, missing out on more precise targeting methods.
It is, therefore, vital that advertisers also embrace these data solutions to deliver accurate campaigns at scale. Building and implementing an effective first-party data strategy means that when the cookie does finally crumble, a solution is already in place.
Partnership with supply-side platforms
The increasingly privacy-focused media landscape has led many advertisers to consider restructuring their buying strategies in favour of cookieless browsers. But there are other methods for gaining the scale and performance required without going back to the drawing board.
One way of doing this is by partnering with a supply-side platform (SSP). SSPs help publishers manage and maximise yield from their ad inventory by making it available to many potential buyers through ad exchanges, ad networks and demand-side platforms.
Those platforms with integrated data capabilities can further help publishers harness the power of their first-party data and enhance audience segments. In return, advertisers gain a fuller understanding of their ad buys and the audience they are targeting.
Adopting a one-to-many approach
A one-to-many approach can help brands navigate the new privacy landscape where reach and addressability are reduced. One-to-many (or one advertiser-to-many publisher) is where an advertiser diversifies spending across multiple publishers while using the same buying platform.
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Not only does this help maintain precise targeting, as the buyer can define audience parameters with their SSP, but it also means they can deploy digital campaigns at scale across numerous publishers, formats and browsers for broader reach.
Combining an SSP and the one-to-many approach can help advertisers strike the perfect balance between scale and precision.
Leveraging private marketplaces and deal IDs
Google’s decision to remove third-party identifiers is part of a larger shift towards an ecosystem with data privacy built into its core. Tightening restrictions globally, like China passing The Personal Information Protection Law (PIPL) and Singapore revising its Personal Data Protection Commission (PDPC) act in 2021, alongside Apple’s recent iOS changes, also point towards a world that aims to protect the consumer.
With 60 per cent of consumers in APAC saying they are bothered by a lack of data privacy, there’s no doubt that the advertising ecosystem should be championing this reform. However, it does leave some questions when it comes to targeting.
Private marketplaces (PMPs) and Deal IDs can provide a viable solution as they allow for more curated and transparent media trading. In a private marketplace, publishers offer inventory packages to selected advertisers. The direct and more private nature of PMPs also means that publishers have more control over who is accessing their first-party data.
This kind of deal puts privacy first, protecting publisher data while allowing for more reliable audience segmentation, which in turn helps publishers sell their inventory at the best price. In addition, advertisers stand to gain several benefits, from better targeting to access to brand-safe inventory and, ultimately, better ROI.
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