ITP & COOKIELESS ADVERTISING

WHITEPAPER SEPTEMBER 2020 INTRODUCTION

Internet users have quite some expectations when it comes THE WHY to customer experiences. Expectations that browser cookies At the time of writing, all top five browsers have made unravel, enabling them to match the wants and needs of serious efforts to limit cookie functionality. Combine these consumers with the most relevant content. Cookies are initiatives with Google's plans to phase out cookies in indeed the linking pin: we stay logged in to our email Chrome, and it's safe to say that the "cookie is dead." accounts, allow our favorite brands to save our shopping cart However, with no cookies to rely on, marketeers are flying items, and our most-visited websites to keep preferred blind. And this can be quite challenging. settings. With this whitepaper, we aim to help you to pave the road to Cookies are also the primary mechanism that marketers cookieless advertising. We do so by providing information employ to track user behavior and to serve relevant about the impact of the changes and the initiatives to solve advertisements. However, in today's internet browsing world, the challenges. We will also share our thoughts on what privacy has become a critical topic, and the call for cookie you, as a marketeer, can do to prepare for these inevitable removal is growing louder. Now that cookieless advertising is developments. around the corner, digital marketing will change dramatically.

How will you prepare for the "Cookieless Era"? LEGENDA

COOKIES OVER THE YEARS THREE POSSIBLE SCENARIOS ● 1994 - 2012: The rise of the cookie ● Scenario 1: The market will adjust ● 2012 - 2020: The beginning of the end ● Scenario 2: Browsers will go their own way ● Scenario 3: No replacement of cookies 1 5

ADVERTISING IN 2020 AND BEYOND ● The impact of cookieless advertising THE ROADMAP TO ● All isn't lost BETTER MARKETING

2 ● Current initiatives 6

MEASURING IMPACT CONCLUSION

How will you prepare for the cookieless era?

3 7

FRAMEWORK ● Defining the framework that's being used throughout this document 4 COOKIELESS ADVERTISING COOKIES OVER THE YEARS

Cookies date back to the start of the internet and are among the oldest website browsing components. Over the years, a lot has Van changed, but the cookie remained.

Informatie Naar Kennis

Het search landschap verandert in rap tempo. De belangrijkste trend is de verschuiving van keyword-based search naar een associatieve en op identiteiten 01 gebaseerde manier van informatie linken, waarbij semantische context steeds belangrijker wordt. Deze verschuiving mag nieuw aanvoelen, maar herintroduceert eigenlijk een concept dat halverwege de vorige eeuw is bedacht. 1994-2012 THE RISE OF THE COOKIE

Background Advertising The cookie was first designed to 1. Mapping behavior on detect whether a user had already websites, social media, and visited the website before. search engines to enable Nowadays, cookies contain many advertising on relevant pieces of information about a user. products or services. 1st YOUR-SITE.NL This information is used to provide 2. Tracking the clicks on and PARTY an enriched visit based on past views of advertisements to behavior and preferences. The data gain insight into marketing usually covers the following areas: performance.

Web usage The cookies that are used to enable 1. Web analytics to customized advertising are generally understand the users' third-party cookies. These cookies are on-site behavior. placed by domains other than the 2. Data storage, including website the user is visiting. user preferences, login 3rd DOUBLECLICK.COM TRACKING-DOMAIN.COM PARTY information, and shopping Cookies are stored in the browser of a cart data, to optimize the user's device. In most cases, they customer experience. contain a limited amount of data. Furthermore, the data provided is These cookies are called first-party aimed mainly at storing IDs to connect cookies, as they come directly from these with data that has been the website or domain the user has collected on-page. visited. Usage of first and third-party cookies

Cookies are used in many ways. For By contrast, third-party cookies are websites. As a result, the information example, they remember what items you employed to recognize a user across collected can be highly privacy-intrusive. have stored in your shopping cart, they different domains. Companies like In the beginning, the data stored in keep users logged in, or they recall the Facebook and Google use this technique cookies was mainly used to keep track of form-fields that were filled in. They also to tie the activities of a single user across 'simple' interactions, such as whether a create a unique identifier to recognize a various websites to one user profile. By user saw a pop-up or clicked an ad. user on the website between different doing so, they enable advertisers to However, in recent years advertisers and sessions. understand how a user interacts with an publishers shifted to ways of working ad. They also allow advertisers to place related to building up unique user When it comes to digital marketing and that user in a remarketing list. profiles, making the information stored in advertising, first-party cookies store data Furthermore, they generate broader cookies much more privacy-sensitive. about a user's identification or about their profiles of users' behavior and make These practices led to the planned activities, such as: what did they click? these so-called affinity groups available deprecation of cookies. Or: what pages were visited? This data to advertisers. storage is done on-site. For example, Google Analytics saves a cookie on the Why they became notorious user's browser with a specific identifier. Not long after their introduction, cookies This cookie ties the different page views became notorious for their privacy to that one single user ID, both during impact. Tracking users was and still is, and in between sessions. As a result, it possible without a user's consent or can establish whether the user is a knowledge and across many different returning visitor or a new one. 2009/2012-2020 Protection Regulation, GDPR. It was Firefox adopted in 2016 and became effective in Following Safari's initiative, Mozilla THE BEGINNING OF THE END 2018. This EU law is a regulation on data Firefox launched Enhanced Tracking protection and privacy within the Prevention (ETP) in 2019, which blocks Background European Union and the European third-party cookies by default and sets From 2009 onwards, cookies have Economic Area. It also addresses the first-party cookies at seven days. prompted numerous discussions. In transfer of personal data outside these 2009, the EU passed a law requiring regions. Internet Explorer / Edge companies to ask users for permission to The limitations on first and third-party place cookies, instead of offering an Browser Developments cookies in the Internet Explorer and option to opt-out. In 2012 this was In addition, June 2017 marked the start Microsoft Edge browsers are minimal. changed, and it was no longer necessary of a whole new level of cookie Some third-party cookies will be blocked to require consent for first-party analytics development. with tracking prevention based on a cookies. Neither was consent needed for tracking-protection list from Microsoft. cookies that weren't used for additional Safari First-party cookies will be set by default. purposes, like those reminding a user Safari kicked off by limiting first-party that he or she had products in their tracking to 30 days and third-party Chrome shopping cart. cookies to one day. Since then, there Google announced that it will start (also read: have been numerous developments that blocking third-party cookies by default https://en.wikipedia.org/wiki/HTTP_cooki go by the name of Intelligent Tracking from January 2022. In the meantime, e) Prevention (ITP). With these updates, Google will give users more options to Safari is aiming to improve user privacy control what is being tracked via first and Legislation and control. At the time of writing, Safari third-party cookies. This update won't Another significant factor within the blocks third-party cookies by default, and impact first-party cookies when users European market, and with that, the first-party cookies will only be available don't update or change settings for these Netherlands, is the General Data for 24 hours before being eliminated. cookies.

AdBlocking Apart from browser developments, it is important to keep track of ad blocker evolution. Ad blockers obstruct ads, but also disable the insertion of cookies. In February of 2020, Business Insider computed that 763M global devices were blocking ads, with the majority (527M people) on mobile devices, followed by desktops (236M). COOKIELESS ADVERTISING ADVERTISING IN 2020 AND BEYOND

To get a better idea of the impact coming from these changes, let's look into the browser shares.

On a global level, we identify three major browsers: Chrome, Safari, and Firefox. As can be seen in below image, Safari and Firefox together have a 25 percent share. Chrome holds approximately 50%. Market shares for Europe and the Netherlands differ slightly compared to other regions, but the overall picture holds up: 25 percent of data is missing or incomplete.

IMPACT Due to these market shares and subsequent missing data, the creation of a customer journey is becoming increasingly difficult. 'To illustrate this, let's look at the following example: 02 BEFORE ITP Bram arrives on site. One week later, Bram sees Bram has returned to the Payday comes and Bram Bram purchases the item He is recorded as a new a Display ad and clicks it. site (2nd session). He adds comes back to the site for he’s been thinking about. visitor. a few products to cart, but his 3rd session. The items This order is recorded as must wait until payday to he left in his cart are still one from a return visitor on purchase. there. their 3rd session. Display gets a little credit for the order.

3. RETURN VISIT FROM 1. NEW VISIT 2. Display AD 4. RETURN VISIT 5. ORDER AD

AFTER ITP

3. RETURN VISIT FROM AD 4. VISIT FROM AD 1. NEW VISIT 2. Display AD 2. ORDER 1. NEW VISIT 1. NEW VISIT

Bram arrives on site to and is Bram never receives the Bram organically comes back Bram comes back to the site Even with friction of finding recorded as a new visitor. retargeting ad since his to the site. ITP cleared on payday. Cookies were the items he had previously cookies were deleted after 7 cookies, so he looks like a wiped by ITP, so he looks like added to his cart, Bram days 2nd NEW visitor instead of a 3rd NEW visitor instead of orders his products. This sale one returning. He adds a returning visitor on their 3rd is recorded as one from a products to cart but must wait session. And, the products he NEW visitor on their FIRST till payday to purchase. added to cart are no longer session. there. As can be concluded from this example, first-party cookies will only be available for seven days after the last interaction. This change will impact tracking and will make it difficult, if not impossible, to personalize customer interaction after seven days. Additionally, seven-day retainment of first-party cookies will also impact aspects like attribution, next best action (remarketing) campaigns, and customer lifetime value predictions. The visitor will be seen as a new user after the seven-day period. As a result, it will become hard to provide detailed insights regarding the return-on-ad-spend (ROAS). This, in turn, might lead to reduced media spend as the effort can't be justified. COOKIELESS ADVERTISING MEASURING IMPACT There is no one-size-fits-all solution to measure the impact of cookieless advertising. However,03 the following criteria might help to create some insights when it comes to the impact:

● How many users come from Safari: check web analytics reports for statistics, check your DSP, and, for example, find out the number of Safari users in retargeting campaigns. ● Determine whether you miss any data in web analytics: e.g. use server-side tracking or server logs to check the number of users you have on your website and compare these numbers to your web analytics system. ● Do you use retargeting campaigns? Since retargeting is mainly based on cookies, using (or not using) these campaigns adds to the impact of the disappearance of cookies. ● Do you have an attribution model? Attribution models make use of data collected on single users and the different channels they touch, not being able to link conversions back to the right channels lead to distorted insights. ● Do you have multiple domains? There are multiple solutions available to account for issues related to the disappearance of cookies on a single domain, however for tracking a single user across domains becomes very difficult. ● Do you use A/B testing tools? These tools tend to work on the basis of user recognition through first party cookies, these cookies have quick expirations when placed in browsers, leading to users not being recognized and therefore shifting through the A and B variant of the tests. ● Do you use frequency capping in display and video advertising? Frequency caps are being modelled on browsers that block cookies, therefore the caps might not resemble reality. 1. PROJECT REARC ALL ISN'T LOST The developments mentioned above will impede 4. When someone uses multiple First of all, Project REARC is an initiative digital marketing, and we will have to find new ways browsers or when multiple people use coming from the Interactive Advertising Bureau to gain insights into our customers' interests and the same device, it is impossible to (IAB). This project aims to provide answers to journeys. However, all isn't lost. We argue that identify the user. digital marketing questions on a global level. cookies were never flawless to begin with: 5. It is unclear to users what data is being collected in all different cookies The IAB goal is twofold: 1. Users can delete cookies at any given and what their use case is. 1. The company wishes to set standards time. Over the past years, we have seen and guidelines for the collection and use an uplift in the use of ad blockers, We believe the industry will do what it always of identifiers in the Cookieless Era. blocking these cookies completely. does: find a solution. In this case, to keep 2. They also aim to improve collaboration 2. With the increase of mobile and confidentiality while providing high-quality user within the industry. On the one hand, they connected TV, there has been a boost in experiences. do so while keeping in mind privacy, traffic within cookieless environments. transparency, and control for the final 3. The process of cookie syncing between user. On the other, they align the different systems is causing a decrease in interests of all parties, including CURRENT INITIATIVES available cookies. Cookie syncing is governments. synchronizing cookies between e.g. a The following initiatives are examples of such Data Management Platform (DMP), which solutions to cookieless advertising. These is used for audience management, and a initiatives can be identified on a local level, but Demand-Side Platform (DSP), which also a global one. As the environment is manages the procurement and multiple changing at a never-before-seen pace and the data exchanges between various future is somewhat unclear, it's good to have a channels from one location. general view on what is happening right now. 2. PRIVACY SANDBOX 3. SPARROW

The Privacy Sandbox is initiated by Google and aims to create Although somewhat comparable to One such example in the Netherlands is an ecosystem that is beneficial for all parties included - to Google's Privacy Sandbox, Criteo's STER. This organization made the switch curtail improper tracking but enable ad targeting through initiative Sparrow assigns a Gatekeeper, from selling advertising space Google Chrome's browser. In this web browser, cookies will be while Google does not. This Gatekeeper programmatically to offering managed replaced by application programming interfaces (APIs). oversees the whole process, from saving inventory that has no cookies linked to it. Advertisers can use these APIs to receive aggregated data, user data to using this data for Alternatively, publishers can focus more which they can use for marketing purposes. This approach advertising purposes. It should give the on the contextual advertising part. This relies on anonymous signals instead of cookies. The Privacy user more insight into the information that approach will enable advertisers to target Sandbox should include the following APIs: is being collected and for what purposes. specific content or keywords and reach 1. Trust Tokens API: to prevent fraud, spam, and DoS. the users who show an interest in these 2. Aggregated Reporting API and Click-Through articles. On top of these developments, Conversion Measurement Event - Level API: to we see an increase in publishers that

measure and assign conversions to previous 4. PUBLISHERS work with a freemium or premium actions. The shared information will be limited to Apart from these initiatives, publishers construction. Both models enable users protect user privacy. are working on solutions to overcome the to log in and read articles. However, the 3. PIGIN API, TURTLE-DOV API, and FLoC: to divide privacy concerns of digital marketing and freemium model exposes users to users into separate interest groups so that they can the loss of browser cookies. The main advertisements, while the premium one is be targeted. reason for their efforts is the fact that a paid, ad-free environment. 4. WebID: to provide users with an ID that enables publishers will see a decrease in revenue them to continue using the single sign-on when cookies can no longer be used. functionality. 5. TOOLS

A final example of cookieless initiatives can be found in the many (stand-alone) efforts of providers, aiming to solve the different challenges that advertisers face.

Some tools are created to gain control over your web analytics data. These instruments aspire to keep attributing on-site interactions to users, enabling the ability to analyze complete datasets to derive valuable insights, while limiting the effect of ad blockers and the disuse of cookies.

Other tools aim to provide IDs that function as alternatives to cookies. These tools tend to focus on different types of matching algorithms, such as first-party publisher data or something resembling third-party matching, based on probabilities.

Following the above elaboration on the different initiatives that are currently relevant, we will move on to defining a framework to be able to evaluate 3 different potential scenarios related to the disappearance of cookies.

04COOKIELESS ADVERTISING

FRAMEWORK 3. EXPERIENCE In the next section, we will use the following framework: This framework consists of three pillars, all of which have an impact on digital marketing:

1. DATA COLLECTION 2. INSIGHTS The first pillar focuses on the collection of all possible (and required) data. Due to current and future developments, it will become difficult, if not impossible, to collect data the way we do today. This issue applies to: ● Web analytics: there will be a reduced ability to identify returning 1. COLLECTION visitors if they are not logged in. ● Campaign data: conversion data is not reliably attributed, making it hard for marketeers to optimize campaigns (impacts attribution and regular conversion tracking) . ● Data management: there will be a limited ability to identify users.

2. INSIGHTS The primary goal of the Insights pillar is to gain an ● It will be more difficult to find your target audiences understanding of what is happening, pulling knowledge from based on the behavior they have shown on your (or all available data. However: other) websites. ● In web analytics, the user dimension will no longer ● It will be harder to run clean A/B tests. be reliable. This change will mainly occur because

not all browsers will continue to enable the

attribution of multiple sessions to one user. Now, before we explain our views regarding a sustainable ● In campaign data, conversion attribution will no solution to cookieless advertising, let's look into three futures longer be reliable, making it impossible to optimize that might come to be. media based on conversion insights.

● In data management, the only reliable data might come from users that are logged in - all other users can't be identified or pieced together.

3. EXPERIENCE

The Experience pillar focuses mainly on the ability to execute marketing and optimize content. However, due to said current and future cookie developments, it will be more challenging to create an optimal audience strategy. Moreover, campaign data will be impacted by a significant reduction in effective audience targeting: ● There will be a decrease in our ability to apply personalized messaging based on all available signals. COOKIELESS ADVERTISING THREE POSSIBLE SCENARIOS 05

We believe the near future will see one of three possible scenarios. Mind you, these scenarios are extremes and may not come fully into reality. However, they will help to illustrate which topics you should bear in mind.

1. Scenario 1: The market will adjust to a system where cookies are no longer needed to achieve the current state of data collection, insights, and activation. 2. Scenario 2: Browsers will go their own way, without market-wide consensus. This process will lead to a highly scattered marketplace and a lot of different implementations. 3. Scenario 3: There will be no way to achieve the current state without a replacement of cookies, nor are there ways to generate this state through (other) technical means.

Below, we will elaborate on each scenario, outline the impact on data collection, the discovery of insights, and the creation of experiences. We will also answer additional questions regarding cookieless advertising.

SCENARIO 1 THE STEPS TO TAKE REGARDING COLLECTION, INSIGHTS AND EXPERIENCE THE MARKET Data collection: ● Audit your data collection, is it in scope with the WILL ADJUST newly set market-standards? ● Are you still collecting data according to the old The market is already looking for new and more (deprecated) way? privacy-friendly targeting methods. Therefore, this first ● Classify systems that are in need of changes scenario seems highly likely. ● Adjust your measurement plan and Examples of initiatives that are indicative of this implementation accordingly scenario are project Rearc and the Privacy Sandbox. ● Implement according to the generated insights Also, publishers are building segments in their own environments to be able to target audiences on specific Insights: criteria. ● Begin generating insights immediately, most NEW WAYS OF TARGETING data you can capture now is relevant for To enable the activation of marketing campaigns, gain deriving insights for now and the future. insights, and achieve results, advertising systems have ● Make sure you can translate data into to adopt this new privacy standard. These systems meaningful insights for activation, and thus include Demand-Side Platforms (DSP's), which allow related to the new standards. E.g. translate your the procurement and management of multiple display data to publisher segments or newly generated and video exchanges from one location. Depending on segments the way it will be implemented, publishers might have ● Generate insights on your current set-up to more control, and targeting will be less dynamic align with the new, e.g. decide on what compared to the current situation. frequency caps to set, on what level ● Focus on developing insights on first party data sources. Extend first party data and analyse this data. QUESTIONS TO THINK ABOUT Experience: ● Depending on the way the market develops, Can we still attribute conversions? Besides targeting, generating insights on performance is one of the biggest challenges adopt new developments to continue targeting here. The way the market should move to a situation that contributes to generating as close to the current situation as possible or insights to be considered as a relevant substitute. leverage these new developments as a Additionally a shift will be seen towards more server-side based tracking. Attribution will competitive advantage. still be possible, only the level of aggregation becomes higher when cookies aren’t there. ● Contact your agency and publishers to discuss new possibilities related to targeting What will personalisation look like? Personalisation will still be possible. Dependent on the granularity available in the new

eco-system, it might become more segment based. If there is an ‘exact’ replacement of cookies, not much will change but the way it is implemented from a technical perspective.

Are all types of activities still viable for each browser? Similar to the current situation, you will be able to do most activities, but in a different way.

What general direction is each browser taking? All browsers move to a generally accepted alternative solution which replaces cookies to enable the same / most of the current functionalities.

Can we still measure the impact on performance? Yes, since the accepted solution resembles the current state, the most features will stay. Being able to measure the impact of marketing efforts on conversion is really important and therefore this seems likely to stay.

Can we still target the same audiences? Probably, though some changes might be needed since the system might differ from the current situation, mostly the same audience are able to be targeted.

Can we keep our strategy towards frequency capping? Probably this will still be possible, however the underlying technical infrastructure will change. But steer on frequency will still be possible. SCENARIO 2

BROWSERS THE STEPS TO TAKE REGARDING COLLECTION, INSIGHTS AND WILL GO THEIR EXPERIENCE

Data collection: OWN WAY ● Decide on the process you want to employ and the differences each browser has. This scenario focuses on the possibility that browsers will ● Check the impact of each browser on the results. Set not reach consensus together and will each implement priorities! their own way of (countering) tracking. Meanwhile, due to ● Build a general to browser specific workflow: all solutions certain limitations in the go-to browsers, usage might should work for all (main) browsers if possible. If not, build shift to new ones (as we recently saw with the browser solutions for each browser `Brave,` for example) ● Decide on the implications of each browser to the implementation process Different strategies for each browser ● Allow for process and protocol differences in for example When each browser follows a different path, a the measurement plan browser-specific strategy would be necessary. For example, you might need to create a solid Insights: privacy-friendly plan for one browser and a ● Build a general-to-browser-specific workflow: analyze on personalization-focused strategy for another. Compared the global level where possible, browser specific if not. to the current situation, the segmented approach can be ● Derive insights from browsers where tracking is still fully used for Safari and the personalized one for Chrome. available and use these insights in browsers where it's not. QUESTIONS TO THINK ABOUT

Can we still attribute conversions? Experience: For some browsers this will still be possible, for others it is less easy or not even possible anymore. ● Develop separate strategies for each browser. If a The best way to keep track would be to move tracking to server-side, or to shift attribution modelling browser enables context targeting, like Safari, use that to spend based models. to place your ads next to relevant information. As a result, you won't need third-party cookies. How will personalisation look like? ● If people use a browser where third-party cookies are On-site personalisation is still possible, however for some browsers off-site personalisation will be limited to platforms where users are logged in (e.g. Facebook) and email. Personalisation on a still enabled, you can keep using your current broader segment with aggregated data should be considered. For some browsers the current way of remarketing strategy. So, a split is created between targeting might still be possible. different browsers, and the approach will be as relevant as possible. Are all types of activities still viable for each browser? ● Develop a creative strategy for different browsers (and If people use a browser with many privacy restrictions, this is probably for the good reason that they aligned with those browsers) to better appeal to your don’t want any information to be tracked. Personalising on those browsers can send the wrong target audience given the less specific targeting signal. Privacy aside, it might or might not be possible to deploy certain tactics within specific browsers. options in certain browsers.

What general direction is each browser taking? Each browser goes it’s own direction, so there is not a real general direction. Trying to tackle the implications of each new release of a specific browser means you’re only focusing on short-term solutions. Therefore creating a long-term strategy around how to deal with each browser would be the way to go, making sure you can be one step ahead of any future implications.

Can we still measure the impact on performance? This will be different per browser. It's very important to keep track of the differences in each browser to determine the impact on measured performance. A possible solution here is to derive insights from browsers where tracking is still available to browsers where it is not.

Can we still target the same audiences Again for some browsers this will be limited, and possibilities here are related to the actions browsers take towards being (un)able to track users.

Can we keep our strategy towards frequency capping? Depending on how browsers implement this, most DSP’s / publishers do this based on cookies, however there are already Machine-learning alternatives actively determining (parts of) the frequencies. SCENARIO 3 Creating different strategies, not based on individual data

If you are unable to track anything on an individual level, you NO would have to come up with different strategies for your marketing channels. For example, apply contextual targeting or session-based personalization. REPLACEMENT

OF COOKIES THE STEPS TO TAKE REGARDING COLLECTION, INSIGHTS AND EXPERIENCE

If no replacement of cookies is introduced and tracking Data collection: is blocked, we will be set back in time by many years, ● Scope your data collection to a full first-party and online advertising will look a lot more like the offline tracking method. Make sure your collection aligns oriented channels. with the insights you need to optimize your marketing efforts. This also means aligning the Data collection will probably not be done on the collection to the segments offered to you for client-side anymore, since there is no way to identify activation. users on-site. Instead, it will be done server-side, which ● User identification might still be made through will lead to insights that cannot be activated off-site in first-party forms of client-side storage, such as real-time. Moreover, the data collected will also be used localStorage. Alternatively, identification can be for analyses and as input for changes on a (marketing) achieved through other means of server-side strategy level. tracking. If not, only general insights can be collected. ● Look for opportunities from publishers and advertising channels to enhance data collection with, for instance, channel, ad, or segment data. QUESTIONS TO THINK ABOUT Insights: ● Generate insights on possible segments for Can we still attribute conversions? each publisher to allow for the best results from In the best case, you still can, either through first party, client-side, identification, through server-side tracking or through other market initiatives that allow for this. Within marketing advertising. platforms this seems highly unlikely. From an owned data point-of-view, it is possible on a very ● Generate insights in the form of attribution high (aggregated) level. modeling or marketing-mix modeling, in ways related to the possibilities for data collection. How will personalisation look like? ● Focus on developing insights on first party data Personalisation will be less personalised and more focused on segments. Dynamic sources. Extend first party data and analyse personalisation will be limited to the offered segments. On-site this is different and probably still this data. possible based on first party data.

Are all types of activities still viable for each browser? Experience: No, most browsers (if not all) will limit the usage of cookies and won’t replace them. Many ● Develop a strategy towards a more segmented activities we currently employ in marketing will probably not be possible anymore, e.g. way of targeting, based on the generated retargeting, attribution, personalisation. insights. ● Focus more on identified users and identifying What general direction is each browser taking? All browsers move away from cookies without replacement of the functionality these cookies more users through loyalty programs or other offer. additional functionalities after login. ● Develop strategies to apply more of the tactics Can we still measure the impact on performance that are currently found in upper-funnel Yes, but not on the same (current) level, it is still possible to measure performance in the form campaigns and translate these towards of sales and maybe relate this back to certain campaigns or channels. Other first-party and lower-funnel tactics. server-side ways of tracking might still apply. ● Make more impact with creatives, develop a Can we still target the same audiences strategy towards creating (e.g.) banners to No, since there is no replacement of cookies, identification of the users across domains is not better appeal to your target audience given the possible, so current audience will have to be translated into publisher provided segments. less specific targeting options. Can we keep our strategy towards frequency capping?

No, there will probably be a shift towards measuring frequencies as a first-party source on publisher sites, but not across sites for campaigns. COOKIES

WHAT TO DO WITH ALL THESE SCENARIOS

As stated above, these scenarios are meant for illustration purposes. We hope they will help fuel discussions about the possible dis-use of cookies and the subsequent impact on the marketing domain. It's unlikely that any of these scenarios will become a reality in its entirety. However, many of the topics discussed should be taken into account when developing future-proof digital marketing strategies.

Asked what we believe is the most likely scenario, we think the browsers will more or less go their own way, or a generally accepted cookie replacement will be implemented. A scenario where there is no replacement will be less likely.

Regardless of these scenarios, however, we cannot turn a blind eye to other matters. Within Europe, we have the GDPR guidelines to comply with, although these might change in the years to come, depending on developments. Moreover, let's not forget our own moral compasses and keep in mind our consumers' perspective when considering alternatives or workarounds. COOKIELESS ADVERTISING THE ROAD MAP TO BETTER MARKETING 06 NOW - NEXT - LONG A third step to take is to identify systems that enable We believe the roadmap to better digital marketing needs the use of first-party data and look at ways to manage to include actions to be taken today, as well as on short and this information. This includes server-side tracking, longer terms. fingerprinting (the identification or re-identification of a visitor), or CNAME solutions (where one domain name Below, you will find some practical tasks you might consider is connected to another). *CNAME is not a valid when preparing for cookieless advertising: solution anymore in the near future due to Safari already starting to detect whether a CNAME is placing cookies* NOW:

First of all, make sure to keep up-to-date with cookieless Focus on the development of insights on first party advertising developments in your market. data sources, leverage all first party data to derive insights on your current customers and prospects. Next, become acquainted with the topic by for example applying context targeting on ITP browsers, while Lastly, your experiments will likely result in the continuing the collection of data the usual way on others. A discovery of contexts and segments that generate the great way is to use a dedicated dashboard of ITP and best outcomes. Adopt your strategies according to cookieless advertising on your business. It is important to these insights, and to any new market initiatives you remember that it takes time to convince people of the need may come across. for change. Hence, keep everyone in your company in the loop by communicating the results of the various efforts regularly. NEXT LONG

In the next step, you are tasked with identifying who your visitors are and The long-term steps to take in the adoption of cookieless managing their IDs. This is no easy feat because more than ever, visitors advertising very much depend on the scenario that will come and customers are in charge of the traces they leave behind. true.

What can you do to get them to provide information and allow you to use Therefore, carefully monitor market developments. Put together that data? The answer is in the level of customer satisfaction you can a team, or assign a person to keep track of all the changes that achieve, so think about any services or products you can design to occur in the market and make him or them responsible for accomplish the best user experience for your consumers. sharing this information.

Bear in mind that you will probably have a wide array of systems, all of As a last piece of advice, start testing your activities, and keep which have some information about your customer. The scattered nature monitoring everything you do. The disappearance of 'old' ways of your data will lead to the need for a central platform on which you store will lead to the introduction of new ones, New tactics will be information and connect the various sources. Hence, you will need to look formed, and if you are among the first to employ these, you into the platforms offered by multiple suppliers. might create a truly competitive edge.

Once you know how to trigger your visitors to identify themselves, and allow you to use their data, adopt your finds to new market initiatives and monitor the results.

This is also the time to implement any viable technical solutions that you have identified, including the before mentioned data platform. COOKIELESS ADVERTISING CONCLUSION HOW WILL YOU PREPARE FOR THE COOKIELESS ERA? 07

We started this whitepaper with the description of how cookies came to be, what the current digital marketing situation is, and how the limitation of cookies impacts the industry. A world without cookies is an uncertain one, at least for now. It is of vital importance to prepare for cookieless advertising. However, the issues are not always visible due to the complexity of the concept and the uncertainty of developments.

Therefore, we created three different scenarios, and even if only part of these outlines will come true, we hope they will help to gain insight into the digital marketing issues at hand and inspire discussion about possible solutions and strategies.

Moreover, we presented some technical and non-technical solutions and provided several hands-on to-dos for the short and longer-term, as well as the future. Now it's your turn: how will you prepare for cookieless advertising?

We welcome any questions you might have!

RUBEN OOSTERHOFF DENNIS KOOPS Technical Consultant Lead Programmatic Marketing Amsterdam Marnixstraat 317 1016 TB Amsterdam

Groningen Gedempte Zuiderdiep 22 9711 HG Groningen THANK YOU Telephone (+31) 020 4938383

Website www.stormdigital.nl