The end of personalized ads?

The rules around online advertising are constantly evolving. Online marketers have long relied on third-party cookies to target the right audience and personalize ads. But how is this landscape changing, and what should we, as marketers, consider?

What are third-party cookies and how are they used for personalized ads?

Third-party cookies are small pieces of data used by websites to collect information about your online behavior and preferences. However, these cookies are not created by the website you are currently visiting but by a third party, often an ad network such as Google, Facebook, or Pinterest.

These cookies track your activity across various digital platforms—websites, apps, online magazines, and more. For example, if you regularly click on a clothing ad on Facebook, the algorithm recognizes your interest in clothing. If you then purchase an item from that same online store, the algorithm is further refined, noting that you also make online purchases. On the back end of these systems, profiles are created based on specific behaviors. This information is invaluable for marketers to personalize campaigns, increasing the likelihood that someone will be triggered by an ad. As a result, media budgets can be used more effectively.

 

The demise of third-party cookies

The elimination of third-party cookies marks a significant shift in the online marketing world, driven largely by growing privacy concerns and stricter regulations such as the GDPR. Companies like Meta and Google face increasingly stringent rules that they must follow.

Google Chrome has already begun phasing out third-party cookies to improve user privacy and clarify how data is used. As of now, third-party cookies are blocked for 1% of global users. By the second half of the year, third-party tracking cookies should be completely removed from the browser. Firefox and Brave have been blocking third-party cookies for some time.

 

How is the landscape changing?

Several developments, both existing and new, are underway. Here are four key trends:

 

Emergence of First party data

First-party data refers to the data that your company collects directly from users who engage with your services. It is becoming increasingly important to gather this data effectively and build your own database. The more you enrich this data, the better you understand your target audience and can apply targeted marketing. This data can be collected through lead generation campaigns.

 

Contextual targeting

This strategy involves placing ads based on the content of the website rather than user behavior. The goal is to match the ad with what the user is reading or viewing at that moment.

 

Use of AI and machine learning

Companies are increasingly investing in artificial intelligence (AI) and machine learning to analyze data and gain insights. These technologies can help identify complex patterns in first-party data, create user segments, and personalize the user experience without relying on third-party data.

 

New technologies.

Google is working on the Google Privacy Sandbox, an initiative that collects data in ways that do not rely on cookies. The aim is to still provide businesses with the information they need to advertise effectively.

 

Instead of Google knowing that you, Jan or Marie, like soccer or clothes, it groups people with similar interests. When you’re online, Google shows you ads for things that are popular with the group it thinks you belong to. However, Google doesn’t know exactly who you are or what you are doing individually on the Internet.

At Megawatt, we closely monitor these new technologies to stay prepared for the changing landscape. Megawatt specializes in creating creatively strong lead generation campaigns, often centered around gamification. For example, take a look at our work with the Nierstichting, where we achieved a 300% increase in leads.

Would you like to know how we can effectively use online marketing for your company? Please contact us.

We supercharge brands!