Advertisers unprepared for the Cookieless future

A new study by YouGov, commissioned by Taboola, sheds light on advertiser readiness for the upcoming demise of third-party cookies. The research, conducted in June 2024, highlights a gap between current preparedness and the potential impact of cookie deprecation on advertising strategies.

Third-party cookies are small data files placed on a user's browser by websites other than the one currently visited. These cookies track user browsing activity across different websites, enabling advertisers to target users with personalized ads based on their interests and online behavior.

Major web browsers like Google Chrome are phasing out third-party cookies in an effort to enhance user privacy. While Google recently delayed its phaseout timeline, the overall trend towards a cookieless future is undeniable.

Key Findings of the Taboola/YouGov Study

The study surveyed 202 advertising and marketing decision-makers in companies with at least 100 employees. Here are the key takeaways:

Low Readiness: Only 25% of respondents reported feeling fully prepared for the end of third-party cookies. This indicates a significant knowledge gap and potential challenges for advertisers in adapting to the cookieless environment.

Support for Delayed Phaseout: Nearly half (46%) of respondents expressed satisfaction with Google's decision to postpone the cookie deprecation. This suggests a desire for more time to develop alternative targeting methods.

Shifting Advertising Spend: A significant portion (44%) of advertisers anticipate adjusting their media mix strategies in a cookieless world. This suggests a potential move away from traditional cookie-reliant methods.

Search and Native Ads Seen as Potential Solutions: When asked about preferred advertising channels in a cookieless environment, search advertising (59%) and digital native advertising (55%) emerged as the top choices outside of social media. This suggests a potential rise in these channels as advertisers seek alternative targeting methods.

Impact of the Study Findings

The Taboola/YouGov study underscores the need for advertisers to proactively prepare for a cookieless future. Here are some potential implications:

Increased Focus on First-Party Data: With limited access to third-party cookies, advertisers will likely prioritize collecting and leveraging their own first-party data for audience targeting. Building strong customer relationships and obtaining user consent for data collection will become crucial.

Rise of Contextual Targeting: Contextual targeting, which uses the content of a webpage to determine ad placements, may gain importance. Platforms like Taboola, which specialize in native advertising based on content relevance, could potentially benefit from this shift.

Investment in Privacy-Compliant Solutions: Advertisers are likely to invest in new technologies and solutions that enable effective targeting while respecting user privacy. Contextual targeting, contextual AI, and cookieless measurement tools are some potential areas of growth.

The phaseout of third-party cookies represents a significant shift in the advertising landscape. While challenges exist, it also presents an opportunity for innovation and exploration of alternative targeting methods. As highlighted by the Taboola/YouGov study, advertisers who proactively adapt their strategies and embrace privacy-compliant solutions are likely to be well-positioned to succeed in the cookieless future.