With the rise of first-party data, brands can find the future cookieless environment intimidating and might be worried about how they can target their products with the same accuracy and sophistication as today.
The deadline is just next year, and as we’ve discussed before, Chrome being one of the most used browsers, it’s going to be a substantial change in the marketing world. If you want to read more about first-party data and how it’s going to affect the industry, don’t hesitate to check our article!
In response to this situation, the industry has already started to look for other options in order to be prepared for the imminent cookie-free world.
However, a year has almost passed since Google announced the new deadline and both brands and publishers are still looking for the perfect alternative. The clock is ticking but here are some ideas about how the industry is preparing for the big day.
Heading towards a cookie-free future
With the news of Google getting rid of cookies in 2023, the importance of first-party data is giving the upper hand to publishers. After all, they will be the ones owning the data of potential consumers.
For brands, on the other hand, this means a considerable loss of control over the data they use to develop their marketing strategies.
This is raising many questions such as: is it possible for brands to buy first-party data? Does this respect consumers’ right to privacy? Can publishers actually sell their consumers’ cookieless data?
The answer to these questions is early to tell, but it’s heading to a yes. In fact, many experts already believe this is where the market is heading to and it can be possible thanks to Private Data Networks.
Private Data Networks as the ideal solution
A Private Data Network or PDN can be defined as a communication network created by an entity with the goal of exchanging data between different locations.
But how does this relate to the marketing industry? In this new environment, it’s possible for brands and publishers to partner up and create new deals where they share their first-party data.
Ever since the announcement of the deprecation of cookies, data clean-rooms have been increasing in importance. That’s why many marketing professionals consider them to be a potential solution to this issue.
But, what is a data clean-room?
“A data clean room is a piece of software that enables advertisers and brands to match user-level data without actually sharing any PII (Personally Identifiable Information)/raw data with one another”Search Engine Journal
We’re already seeing the interest of big entities in clean-room tech. For instance, Omnicom Media Group reportedly partnered with InfoSum in 2021, one of the largest data sharing platforms, to integrate their tech and solutions and develop its capabilities.
Dealing with two main challenges
While clean-rooms can be a good answer to individual deals, one challenge that comes up is scalability. How can we develop this process on a bigger scale?
The key might lay in the technology that we already have. Further developing clean-room tech for a more scalable environment, along with creating a system of user approval can be the right mix to have successful Private Data Networks for the advertising industry.
This might sound challenging, but this idea doesn’t seem far off from what brands do today with third-party cookies and it can be a pretty similar process.
Seems like a win right? However, there’s one more challenge that is crucial to consider.
Other rising questions are what is the role of these clean-rooms going to be and if this process is going to maintain privacy in this cookieless future.
This tech is still new and, as Adweek states, clean-rooms don’t control the data that it’s shared in their platforms. That’s why their future role in the marketing industry is still unsure. As you know, privacy is the main reason why third-party cookies are being removed, so it’s an aspect that must be protected at all cost.
This is where Alternative Identity Providers or AIPs come into play. Their goal is to create alternate anonymous IDs based on opt-in data from customers. And yes, this also comes with its own challenges, like the lack of scalability in media sources. However, it can be a great potential solution for one of the biggest challenges we have.
As long as both developers and marketers find a way to mitigate these challenges and work together to find a solution, we will be certainly ready for D-day. Yes, we still have months to go, but the answer to cookie deprecation becomes clearer every day.
What is a Private Data Network?
A Private Data Network is a communication network where different entities can exchange data in a digital environment.
What are the main challenges Private Data Networks can face?
The technology to develop PDNs is still relatively new. This raises two main challenges: how to develop this tech on a big scale and how to preserve consumers’ privacy.