With the gradual phasing out of third-party data and the rise of first-party data, some brands might see a future cookieless environment as something intimidating. How will they be able to target their products with the same accuracy and sophistication? You can read more about first-party data and how it will affect the industry in another article, but here we’ll look in more detail at what businesses can do.
With Chrome being one of the most used browsers, the loss of third-party data is going to be a substantial change in the marketing world. In response, the industry has already started to look for other options. The perfect alternative may not yet exist, but here are some ideas.
Heading toward a cookie-free future
The news of Google getting rid of cookies in 2023 is good for publishers, who have all of the first-party data for potential consumers. For brands, on the other hand, this means a considerable loss of control over the data they previously used to develop their marketing strategies.
Will it be possible for brands to buy first-party data? Does this respect consumers’ right to privacy? And can publishers actually sell their consumers’ cookieless data?
The answers to these questions are currently unknown, but leaning toward a yes. In fact, many experts already believe this is the future of the market, made possible by 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.
In terms of the marketing industry, it’s possible for brands and publishers to partner and create new deals where they share their first-party data.
Ever since the announcement of the cookies’ demise, data clean-rooms have been increasing in importance. That’s why many marketing professionals consider them to be a potential solution to this issue.
“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) or raw data with one another.”Search Engine Journal
We’re already seeing a lot of interest from 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.
The two main challenges
While clean rooms can be a good solution to individual deals, one challenge is scalability. How can we develop this process on a bigger scale?
The key might lie 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 could be the right mix to create successful Private Data Networks for the advertising industry.
It might sound challenging, but the idea doesn’t seem far from what brands do today with third-party cookies. However, there’s one more challenge that is crucial to consider.
The question is how these clean rooms can maintain privacy in a cookieless future.
The idea is still new and, as Adweek states, clean rooms don’t control the data that is shared on their platforms. That’s why their future role in the marketing industry is still unsure. Since privacy is the main reason why third-party cookies are being removed, it’s an aspect of change 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. This also comes with challenges, such as the lack of scalability in media sources. However, it could be a great potential solution for one of the biggest challenges we have.
As long as developers and marketers find a way to mitigate these challenges and work together to find a solution, we will certainly be ready for D-day. Solutions are developing, but the answer to cookie phase-out 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.