How is the Adtech Space Preparing For a Cookieless World?

January 25, 2023

In recent years, the adtech industry has been buzzing with talk of the impending termination of third-party cookies. These small text files, which are placed on users’ devices by advertisers and other third parties, have long been used to track users’ browsing habits and deliver targeted advertising. However, with increasing concerns about user privacy, many browsers and technology companies have announced plans to phase out support for third-party cookies. This has left the adtech industry scrambling to figure out what comes next.

One of the most immediate concerns for the adtech industry is the loss of programmatic advertising. Programmatic advertising relies on third-party cookies to target ads to specific users based on their browsing habits. Without these cookies, programmatic advertising will no longer be able to deliver the same level of precision and personalization. This could lead to a decline in the effectiveness and efficiency of programmatic advertising, potentially reducing revenue for advertisers and publishers.

But while the loss of third-party cookies may seem like a major blow to the adtech industry, some experts believe it could ultimately lead to new and more innovative ways of delivering targeted advertising. For example, instead of relying on cookies, adtech companies may turn to other forms of data, such as device IDs or IP addresses. They could also use contextual data, such as the content of the website or app where an ad is being served, to deliver more relevant and useful ads to users.

Another possible solution is the use of first-party data, which is data that is collected directly from users by the advertiser or publisher. This data could include information such as email addresses, purchase history, or other data that users have voluntarily provided. By using first-party data, advertisers and publishers could gain a more complete picture of their users and deliver more targeted and relevant ads.

While it is true that the loss of third-party cookies will bring a lot of challenges for the adtech industry, it will also lead to a more privacy-respectful and user-centric way of delivering targeted advertising. Adtech companies will have to adapt and find new ways of targeting advertising that respect users’ privacy, but they will also have the opportunity to create more innovative and effective ways of delivering ads. As such, the adtech industry will have to adapt to this change, but it will also be a chance to innovate and create new ways of delivering relevant advertising to users.