On July 27, IAB Ukraine organized the “3rd party cookies deprecation. Consequences and Alternatives” webinar, where digital experts shared their thoughts on what lies ahead for the industry after the third-party cookie ban. Mykhailo Bryzgunov, PPC & Programmatic Group Head, also took part in the webinar. We have prepared a summary of the webinar for you so that you can better and more easily understand what awaits the market after the innovations.
3rd party data is data that is collected and analyzed by a company that does not interact with the customer directly. This data can be used for the purposes of advertising targeting, analyzing customers’ behavior, and determining their interests.
3rd party data can be collected from various sources, such as:
Targeted advertising is a type of advertisement that is shown to users who are likely to be interested in it. Customer behavior analysis is the process of studying user actions on websites and mobile applications. Identifying customer interests is the process of determining what users are interested in.
3rd party data can be a useful tool for companies that want to better understand their customers and target advertising to them. However, it is important to note that third-party data may not always be accurate or up-to-date. It is also crucial to comply with the legislation on the protection of personal data when using third-party data.
First-party data | Third-party data | First-party cookies | Third-party cookies |
Data that your company owns and collects. This may include the data collected either online from the website or offline. It’s the most sustainable due to the ecosystem changes. | This data belongs to and is being collected by other parties but not your company. Though it’s sometimes called “other parties’ data”, technically Google’s own data belong to this type from your company’s point of view. | The cookie file type is stored in the customer’s web browser. This file type will be further allowed for Chrome in 2024 but it has time limitations for Safari and Firefox. | The cookie file type is for storing data in the customer’s web browser. Today this file type is forbidden by default in Safari and Firefox and since 2024 it will be forbidden for Chrome as well. Note that for some own data activation, third-party cookies are NECESSARY. |
Currently, 3rd party cookies are used for tracking and collecting user data, audience profiling, targeting, analytics, attribution, and optimization. They help identify users by certain characteristics, such as sociodemographic parameters, behavior, preferences, etc., and obtain data about their actions on the site, for example, page views, adding products to the cart, purchasing, filling out forms, etc.
Advertisers use this data to set up personalized and targeted advertising.
1st party cookies | 3rd party cookies |
Tracking a user’s behavior within one websiteCollecting personal data is conducted with the help of various pixels and GA | Multi-site users’ behavior trackingEnrichment of data on the customer and the customer’s portraitFurther data usage for targeting of advertising through DSP |
3rd party cookies and other identifiers track user activity on sites, and user data may be shared more widely than users expect.
The limitation and further absolute banning of 3rd party cookies’ usage were influenced by the adoption of the GDPR and the CCPA, which limit the collection and processing of personal data. On the other hand, the request for privacy in the network also comes from users too. So Apple, followed by Google, started limiting the use of data by third parties. Currently, the use of 3rd party cookies is already limited in Apple’s SKAdNetwork and in Firefox and Microsoft Edge browsers. In 2020, Google introduced Google Privacy Sandbox, a solution aimed at ensuring user privacy and limiting cross-site tracking. According to forecasts, it will be fully operational in the second half of 2024. Therefore, a question arose in the digital community – how and what to replace 3rd party cookies with?
Since 3rd party cookies are practically all the data that the user leaves on the site, the changes will be significant.
Below are the features that will cease to exist or will change after the prohibition of the collection of 3rd party cookies:
Function | Will cease | Will change |
Floodlight Audiences | One-to-one audience targeting will not be possible as the audience will vary and consist of FLoC models | Topics API | While Active Targeting features require testing, Floodlight Audiences is not recommended.All 1st party audience activations depend on ID/cohort match rate |
Frequency control | Tracking based on user behavior will not work for frequency control | Frequency controls will become 100% simulated. |
GMP інтеграції для таргетування | The current SA360 and GA360 audiences will not be viable | Search retargeting and GA360 audience lists (except lookalike audiences) will be discontinued in the classic form. There will be a replacement for topics. |
Fraud prevention | Cookie-based fraud prevention will cease and may potentially be replaced by alternative signals or Google’s Trust Topken API | Most of the major verification partners have already switched to such models. Acceptance of trust tokens will require the consent of the user, publisher, and brand security provider |
This all boils down to generalizing users and erasing personalization. So there will be less personalized advertising.
Today it is worth taking care of how well pixels and other data collection tools work, start segmenting the audience on your own, and look for ways of getting the end customer.
Innovations will lead to certain risks for both advertisers and DSP platforms.
Thus, clients will face an increase in fraud, a deterioration in cross-media modeling and calculation of the effectiveness of advertising campaigns, as well as a deterioration in the accuracy of targets and audience recognition.
As for DSP platforms, changes concerning the prohibition of the use of 3rd party cookies will bring the following difficulties for them:
What this all mean for DSP
What will cease | What will stay | What new will appear |
The estimation of cross-site audience coverageBuilding of cross-site frequencyCollection, profiling, and application of cross-site audiencesPost view reports and multitouch attribution | Targeting by publishers’ audiencesActivations of 1st party audiences on platforms with authenticationTargeting by context signalsPost-click reports and optimizations | Seller Defined Audiences (SDA) (leading publishers’ 1st party audiences to the unified taxonomy and buying such audiences)Using API of external platforms for targeting by audiences and remarketing |
The next changes in the planning of advertising campaigns are waiting for advertisers:
If agencies and advertisers have already switched to Google Analytics 4, disabling 3rd party cookies will not change the reports they currently receive.
Data used for measurement | The cookie file type necessary for the measurement | Whether it’s allowed to use data for measurement in Analytics if the data were collected in a browser, which does not support 3rd party cookies |
Click-through campaign measurement from Display & Video 360, Campaign Manager 360 and Google Ads | First-party | Yes |
Core measurement (time on site, pages visited, etc.) | First-party | Yes |
Data Import (CRM Attributes) | First-party | Yes |
Measurement Protocol (offline events) | First-party | Yes |
Google Data (Signals/ Store Visits/ Age/ gender/ affinity) | Third-party | No |
& Video 360, Campaign Manager 360, Google Ads sand YouTube Engaged View Conversions | Third-party | No |
However, the biggest changes will impact remarketing. There will be a need to find new methods of activating different types of audiences:
Audience type | The cookie file type necessary for activation | Alternative methods of activation |
Core site data (time on site, pages visited, etc.) | Third-party cookies | Using 1st party data (customer match) |
Data Import (CRM Attributes) | Third-party cookies | Using 1st party data (customer match) |
Measurement Protocol (offline events) | Third-party cookies | Using 1st party data (customer match) |
At the same time, the metrics by which it will be possible to evaluate the effectiveness of advertising campaigns will change. Of the common metrics available today, only CTR will not have significant problems. As the digital ecosystem loses access to previous tracking signals, the data available for measurement will become more aggregated, more limited, fragmented, and time-bound.
Low | Middle | High |
Viewability, media, and audiences verificationEconometric modelingSingle-touch AttributionCTRMetrics within one platform (for example, interactions, reactions on social media) | Digital and cross-medial researches Brand liftDirect determining of influence on conversions and salesAudience insights | Multi-Touch Attribution (MTA)VTROptimal frequency and coverageIntersection of audiencesCross-device measurements |
Today, companies use several approaches to work with the data:
Currently, the Data Clean Room solution is becoming increasingly popular, being used by advertisers and publishers to find intersections between 1st party datasets without the need to share identifiable data.
There are several types of Data Clean Room:
However, this solution has certain drawbacks:
Also, today the market is testing user identification solutions without the use of 3rd party cookies, such as predicative identifiers. They identify technological signals of user activity, such as IP address, device type, screen extension, OS version, etc. Such a solution allows you to get the desired scale for an advertising campaign, provided the correct data is used.
However, like the previous solution, predicative identifiers have their drawbacks, such as
Another solution is to use third-party ID systems that rely on data from the publisher collected using a third-party identifier. Users can control their personal data with the help of a third-party cabinet or a system for controlling the transfer of permission on the site.
Such solutions have several advantages, in particular, they allow obtaining comprehensive permission from the user, provide an opportunity to obtain quite detailed data, and have protection against fraud.
At the same time, they also have disadvantages: limited scaling capabilities and the need for investment on the part of the publisher.
Another solution used to collect data is ISP-based IDs. They allow deterministic targeting regardless of browser or mobile OS limitations.
Advantages of such solutions include privacy, lack of restrictions, and protection against fraud. But at the same time, such decisions depend on Internet operators.
In order to successfully survive the disconnection of 3rd party cookies, the webinar participants recommend returning to the Test&Learn practice. Controlled experiments are widely used in digital advertising and will continue to play a key role after the end of support for 3rd party cookies. Therefore, digital market players must develop alternative solutions for measuring digital impact with privacy in mind. To do this, they should follow a few tips:
Although disabling 3rd party cookies has been postponed several times, there is no doubt that it will eventually happen. Therefore, to prevent this event becoming a surprise for your business, it is worth looking for alternative methods of data collection already today.
Webinar speakers:
Moderator: – Anastasia Baidachenko, CEO at IAB Ukraine