Here’s how Google’s cookie crisis is affecting advertising and martech

Necessity breeds innovation, but what happens when forced innovation breeds frustration?

After two years of delays, when Google finally started Phase out third-party cookiesnow the Interactive Advertising Bureau (IAB) Technology Lab and the Competition and Markets Authority (CMA) have asked it to “undo” cookie deprecation.

How does this impact the industry?what does that mean Marketing attribution software? Do thought leaders turn a blind eye to this, or do nothing?

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At a time when companies are overcorrecting post-pandemic through mass layoffs and cuts to marketing budgets, Google’s latest plans come with the burden of unpredictable restructuring costs, operating efficiencies and legal liabilities.

Since 2019, IAB Tech Labs, a non-profit research and development consortium, and the UK Competition and Markets Authority (CMA) have been closely investigating Google’s privacy practices. The agencies have come under fire over threats to brand safety, measurement, data loss, anti-competitive concerns and a heightened need for clarity on Google’s commitment to a privacy-first future.

according to IAB report, The programmatic advertising ecosystem processes millions of auction queries per second, which equates to billions of transactions per day. Google’s failure to uncover the scope of new services and infrastructure that publishers, DSPs, and SSPs will need to adopt further threatens the growth of the AdTech industry.

The IAB’s Privacy Sandbox Working Group evaluated 45 use cases across five pillars (Audience Management, Auction Dynamics, Creative Delivery and Rendering, Reporting, and Interoperability), which asked specific questions:

• How does Chrome meet the need to maintain contractual relationships with media buyers, publishers and technology partners?
• How does Chrome recommend that the digital advertising industry support third-party auditing in areas such as fraud, ad serving, and measurement (to name just a few of the key areas requiring auditing today)?

China Manufacturers Association Highlighted concerns about Google tilting in its favour, saying “the level of granularity in classification may impact the utility of the API for publishers and advertisers as well as publishers’ first-party data strategies.”

The CMA requires Google to transfer its Topics API, which powers interest-based advertising (IBA), to ensure it does not +3.5 billion user group.

Taken by 3 experts

While the business costs of restructuring remain a mystery, it will drive B2B and B2C businesses, technologists and institutions to re-strategize for continued success. Our industry experts highlight the emerging themes that will shape marketing performance and creativity.

The phasing out of third-party cookies will hold businesses accountable for their marketing activities.What brands and marketers can expect Expect increased creativitycultivating consumer communities and rethinking technology’s contribution to engagement and attribution.

We spoke with three MartTech experts from leading technology providers, communications agencies and Fortune 500 partner marketing services to provide readers with actionable advice.

1. Marketers will bridge audience disconnects through asset optimization

“Google’s Privacy Sandbox initiative and the demise of third-party cookies have taken brands out of control when trying to reach consumers online.

The rollout of Google’s privacy sandbox and cookie depreciation lacks control, transparency and (potentially) accuracy, leaving marketers and ad agencies exposed to the whims of an ever-evolving product. Marketers who rely on digital advertising will struggle to reach the right consumers authentically and effectively. ”

– Jonas SicklerDigital Marketing Analyst, Terakeet

2. Performance marketers will move closer to brand marketers

“Because I lean more towards the traditional ‘branding’ side, this change won’t directly impact my daily life. In fact, it has given many marketers a greater understanding of how SEO and branding work organically.

I have a very contrarian view and see deprecation in the ‘cookie first’ world as a bill that is about to expire. “

– Modi Oberstein, SEO Brand Leader, Vickers

3. Authenticity and reliability will bring consumers closer to the brand ecosystem

“[Brands] Search intent insights, social media data, or market news can be extracted.

This data should then be used to create more personalized marketing campaigns that do not rely on third-party cookies.

– Jonas SicklerDigital Marketing Analyst, Terakeet

“As AI tools emerge, making it easier for a wider range of marketers to create visual content. Visual storytelling, first-party data, and contextual advertising on various platforms or publications will play a key role in this privacy-first, post-cookie world. drive success in the world.

Consumer-facing and enterprise-minded marketers will soon be able to create game-changing graphics and videos, and brands that seriously commit to great AI-driven content will become packaging leaders. “

– Chris Heine, senior director of content and media strategy at Mission North

“Brands will have to rethink their mindset and approach. We are addicted to data that never really belongs to ‘us’ in the way we think it does. This creates a mindset that affects the way we make decisions that must change. Essentially, this will force brands to keep their finger on the pulse of their audience, rather than lurking in the shadows and hiding behind analytics.

I always like to boil things down to their simplest parts. Do you think mom-and-pop shops that also operate online will care a lot about this? No why? Because they know their audience. They know where their audience is coming from and why they are coming to them. How do they know? Because they interact with the audience. There is no way around this. You have to engage with your audience and take a somewhat more “traditional” approach to your brand.“

– Modi Oberstein, Wix SEO Brand Leader

Looking to the future

Just like cookies are bad for your health, 3P cookies are bad for your digital health. As netizens become aware of their digital footprint, marketers will need to digest some hard truths about their target consumers’ desire for greater digital security. From data abuse to customer advocacy, brands have a long bridge to cross.

Experts predict that digital well-being will be enhanced in the coming years:

“The Internet has essentially been using and abusing user data for years, and we’re about to face this bill because we essentially refuse to promote a responsible digital world. I’m sure many of you reading this are concerned about what I just said. It’s very disturbing what was said. That doesn’t mean it’s not true. We basically act like people don’t realize. Even if people aren’t quite “digitally savvy,” they’re not naive. People realize they’re being Over-tracking and targeting. Do we really think we’re going to tolerate having a conversation about something and then forever seeing meta-advertising targeted at them based on that conversation? (I think the world’s open AI is going to have a hard time with it in the next few years Lessons).”

– Modi Oberstein, Wix SEO Brand Leader

“Consumer tolerance for intrusive advertising is at an all-time low. Rather than creating workarounds to maintain the status quo, the demise of the cookie presents an opportunity for brands to deliver what consumers are looking for, at the moment they need it. information.

Marketers who want to create real connections with consumers should leverage first-party and behavioral insights to understand their needs. They can then use this data to build an ecosystem of digital assets that they fully control, including websites, apps, and blogs. This strategy, called owned asset optimization, enables brands to collect more consumer data, market more authentically, and deliver greater customer value. “

– Jonas SicklerDigital Marketing Analyst, Terakeet

G2 takes

The third-party cookie dilemma is a double-edged sword when it comes to marketing attribution and measurement, especially as marketers face greater demands to optimize performance and demonstrate ROI. Marketing departments and marketing technology as a whole still need to focus on multiple segments and pipelines to meet business needs. But how?

Let’s look at some scenarios and dig into our exclusive data to learn more about the impact.

• scene one: The gradual disappearance of 3P cookies has left a “measurement black hole” for marketers and technology providers because Google has no plans to create cookie replacements.
• Scenario 2: 3P cookies are not going away, causing huge financial losses to organizations that have re-strategized and reinvested in building cookie-independent ecosystems. Additionally, this creates a serious loss for privacy-first initiatives.

and 58% of executive leaders said Given that MarTech spending will increase, some small and medium-sized businesses and enterprises may restructure this year. Google x IAB x CMA drama will impact more than 110 Marketing Attribution Software In the market, it also extends to CRM, marketing automation, email marketing, email tracking, demand generation and sales analysis tools.

Based on a survey of 1,700 global software buyers, our 2024 buyer behavior and software status The report reveals key buying behaviors and expectations respectively.

1. Most buyers plan Increase software spending in 2024 (up 6% since 2023)
2. Senior business leaders will seek a one-stop shop to effectively focus on multiple segments and pipelines
3. They also expect software vendors to achieve a return on investment within the first six months – one of the top three priorities for SMBs
4. Only enterprise business will prioritize safety and security during the software evaluation process

Third-party cookie deprecation plans and increased scrutiny from global regulators will continue to drive buyers toward compliant and secure software vendors.

Will Google’s reputation collapse over cookies?

Although Google got from Past W3C To create use cases for Privacy Sandbox in the right direction, the tech giant has been open to feedback and collaborating with the IAB Technology Lab and the CMA since 2020. Google also agrees to comply with the IAB’s requirements Data transparency labeling practicesaiming to create a viable ecosystem for publishers and advertisers.

However, with things at a standstill, Google Recently purchased Reddit data The huge funding of up to 60 million US dollars and the popularity ranking of the Reddit community do not prove its “trust-building” behavior.

Google may be “The most powerful company in the world,” but it will be the most trustable What companies are there in the world? It will be interesting to see how things develop as the CMA releases its April report.

Until then, stay tuned and stay up to date with industry news G2 Technology Mix.