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What's Happening to Cookies, and What Does It Mean for the Future of Digital? Contents

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What's Happening to Cookies, and What Does It Mean for the Future of Digital? Contents THE COOKIE CONUNDRUM WHAT'S HAPPENING TO COOKIES, AND WHAT DOES IT MEAN FOR THE FUTURE OF DIGITAL? CONTENTS Where are we now? 02 Where are we going? 04 The way forward 14 WHERE ARE WE 01NOW? WHERE ARE WE NOW? 3 WHAT IS A COOKIE? WHAT ARE THEY USED Cookies are little bits of information which are stored on your device by your web browser when you FOR NOW? visit a website. Imagine if Netflix never remembered who you were and you had to login afresh each time you used the site, or your Amazon basket forgot all the items you added as you shopped on Prime Day. What about if you had the privacy choices banner pop up every time you visited a website. Pretty WHERE DID THEY annoying, right? These are simple examples of the use of browser cookies for storing little COME FROM? bits of information about the use of that browser (think families using the same browser as an example of why it is not always information related to individuals). They are fundamental to, and incredibly useful for, the web 1994 experience we have come to expect and enjoy. Cookies are also used to remember information about users as they move The year cookies were introduced as a way across different websites on the web, enabling advertisers to serve ads of remembering what was in a user's virtual based on what sites users have been to in the past and how they behaved shopping carts. on those sites. WHERE ARE WE NOW? 4 ARE WE ACTUALLY GOING SO WHAT'S THE DIFFERENCE COOKIE-LESS? BETWEEN FIRST-PARTY AND The short answer is no. Google’s announcement THIRD-PARTY COOKIES? that has shaken the world of digital advertising and spawned dozens of sensationalist ‘Cookie-pocalypse’ headlines, refers to the phasing out of third-party cookies, but not first-party cookies. FIRST-PARTY COOKIES Are set by the domain (site) you are visiting for the purpose of providing that nice user experience mentioned above, as well as monitoring how you utilise the website (think Google Analytics). CHECK YOUR COOKIES THIRD-PARTY COOKIES Want to see what cookies are stored for a Are set by a domain other than that of the site you are visiting for the purpose of web page you're visiting? personalising your experience of marketing and advertising across the internet, as well as for tracking exposure and interaction to ads on your site (if you’re a publisher, or offer While visiting a page in Chrome: right click >> select “inspect” ad placements) for advertisers (via ad servers). >> select “Application” from the menu across the top >> select “Cookies” under “Storage” in the left navigation pane Think about the ads you see around the web for a website or product you viewed recently but did not buy. The information that informs the placement of these types of ads for you Want to see all the cookies being stored – based on your browsing behaviours – as well as the measurement of you seeing the ads on your Chrome browser? and subsequently how you engage with them are all necessitated by third party cookies. Paste chrome://settings/siteData in your URL bar WHERE ARE WE NOW? 5 WHY ARE THIRD- PARTY COOKIES BEING PHASED OUT? The “privacy agenda” has been something of a slow burn over a number of years as consumers have Users are demanding greater privacy - become more aware of how closely and deeply they are monitored and how vulnerable their data including transparency, choice and control could be. With high profile privacy and transparency over how their data is used - and it's clear stories like WikiLeaks, Snowden or the likes of the web ecosystem needs to evolve to meet the more recently released FinCEN files as well as these increasing demands. seemingly consistent high-profile data breaches from the likes of Equifax, British Airways, My Fitness Justin Schuh, Director of Chrome Pal, EasyJet, Ashley Madison and many more contributing to an awareness of and concern about engineering, Google data privacy. This mounting consumer concern was stated as the reason for phasing out third-party cookies by Justin Schuh, Director of Chrome engineering at Google stated in a post on their Chromium Blog in January 2020. WHERE ARE WE NOW? 6 ONLINE PRIVACY MILESTONES TIMELINE iOS 14 - removal of IDFA ITP 1.1 ITP 2.3 rave rowser Launch Chrome third party Cambridge Analytica cookie horizon announced 2011 2017 2019 2022 2016 2018 2020 ITP 2.2 ITP 2.1 Chrome scheduled to phase out third party cookies GDP (General Data Firefo introduces Do ot ITP (Intelligent Tracking Protection egulation) CCPA (Califronia Consumer Track Prevention) 1 comes into force Privacy Act) comes into force Firefo blocking ads by default WHERE ARE WE NOW? 7 WILL GOOGLE BE REPLACING THIRD- PARTY COOKIES WITH ANYTHING? Google’s first step towards replacing the positive functionalities of third-party cookies is The Privacy Sandbox - a collection of APIs which will rely on anonymised user signals which are not cookies. Five APIs have been announced, but The Privacy Sandbox is still very much in its early stages. WHERE ARE WE 02GOING? WHERE ARE WE GOING? 9 WHAT WILL STILL BE POSSIBLE WITHOUT POSSIBLE WITHOUT THIRD PARTY COOKIES? THIRD PARTY COOKIES? PROCESS/TACTIC DIRECT PUBLISHER PROGRAMMATIC SOCIAL The table on the right provides a picture of what the future might look like; it shows which processes and POST-CLICK tactics will still be possible across Direct Publishers, ATTRIBUTION Programmatic and Social in a world without third-party cookies: POST-IMPRESSION ATTRIBUTION WITH CAVEATS FREQUENCY CAPPING SEQUENTIAL TARGETING 1ST PARTY AUDIENCE BUYING 3RD PARTY AUDIENCE BUYING LIMITED LIMITED LIMITED WHERE ARE WE GOING? 10 HOW WILL THE CHANGE AFFECT MEASUREMENT? When it comes to third-party ad Website measurement solutions like Google Analytics (Universal Analytics) utilise a number of different cookies to ascertain if users have visited your site before and how long they spend on your site and pages, partners such as Ad which enables them to tie together multiple visits to a site in order to understand how those visits contributed Servers, DMPs and toward a conversion; such as a sale, a sign-up, or a contact. These however are first-party cookies and will be unaffected by the change in 2022, at least as things stand now. Ad Network Partners, The October 2020 public release of GA4 (Google Analytics 4) with event tracking at its core gives us a hint at who will want to how Google is preparing for the long-term. This latest incarnation of GA moved away from a session-based track conversions measurement paradigm, which relies on connecting visits together with the help of cookies, to an event model with each event being treated distinctly and then pieced together by an identifier much more representative of or other behaviours the tracking of mobile measurement partners. occurring on your Instead conversions will be tracked in the browser and then the partner would need to make API calls to collect site, they will no any conversion values. At least that is the Privacy Sandbox thinking, click-based conversion measurement without third-party cookies. It is a process similar to the way that self-attributing networks such as Facebook longer be able to do function – which means a high level of trust on their setup and marking of their own homework. It is feasible so via tags or pixels, that sites may choose to adopt a “postback” system, again much like mobile measurement conventions, with which leverage third- their advertising partners in order to feed them with data to inform their platform optimisations. party cookies. Impression, or reach, data would be similarly collected via API, but without being able to call on individual user data it will rely on aggregated data, provided the minimum volume of users for aggregation are met. The move towards privacy has the potential to make the digital ecosystem more opaque than before. THE WAY 03FORWARD THE WAY FORWARD 12 WHAT'S GOING TO Context will become important Contextual targetting is nothing new, and HAPPEN NEXT? when done right it can be just as effective as using third-party data, as was shown in our The digital landscape is whitepaper produced in partnership with Teads constantly in flux, and the from 2018. Contextual targeting is likely to grow in popularity as third-party data dries up. phasing-out of third-party cookies will be a gradual change, not a cliff-edge. First-party data will fuel effectiveness The ‘cookie-pocalypse’ will not be as Publishers will need to create stronger brand- dramatic or catastrophic as many safe environments with more first-party data in feared, and digital will continue to order to ensure the effectiveness of advertising. be as essential for advertisers as it is for consumers. However, there will be a few key changes how media is planned and bought and how effectiveness is measured. Attribution will become less deterministic and more probabilistic One of the key attribution issues to overcome is how to show the value of ad impressions in display. It may be that display comes to be seen as a performance amplifier rather than a trackable element. THE WAY FORWARD 13 WHAT ARE TIPI GROUP DOING TO PLAN FOR THE FUTURE? At TIPi Group we see the phasing out of cookies as good news for the internet, advertising and society in general. The digital ecosystem has been too opaque and the volume of impressions has been underpinned by the polarisation of opinions and the popularity of fake news, for too long.
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