Who Stole The Cookie From The Cookie Jar?
In my opinion, the adtech ecosystem is weird. I spent two plus years doing DevOps, and generally, a big part of our work was to constantly find new cutting-edge technologies to make the whole architecture harder, better, faster, stronger.
When I switched for this environment, instead, I found myself working with the basics of the web: URL parameters, cookies, client-side scripting, etc. Now, I’m not blowing my own trumpet, nor do I want to bash the current technology stack being used everywhere. I am also aware this is a gross generalisation and that there are genuinely some really good products which go beyond the simplicity of what is exposed on the surface. Still, you can imagine my surprise when I realised how heavily the industry relies on the basics, which despite getting the job done, they aren’t exactly ‘innovative’.
And so we reach 2019, where it seems nobody likes the third party cookie. What happened? Why now? After all, third party cookies are not exactly a new concept in this game nor anywhere else on the web.
The World Is Awash With Data And Software.
Here at SBDS we often say “we are in the midst of the most exciting marketing wave yet”. If you have been following the news over the last couple of years you may have also noticed we’re are in the middle of a privacy storm which doesn’t seem to be settling – in fact, it’s still raging despite starting its journey in 2013 after Snowden’s revelations to the American public about surveillance. At least, this is the date for me when the chain reaction started; with the data focus suddenly under the public spotlight.
Fast forward to early 2018 when Cambridge Analytica reminded everyone how dangerous the misuse of data can be, combined with the induction of the now infamous GDPR, it’s fair to say the focus on data has become firmly planted into our ecosystems.
This brief recap of events is just to show you how deep the connection between data and privacy is, and why third party cookies are getting the short end of the stick.
Time for a quick cookie recap.
A cookie is a small piece of data stored on your device by its web browser and it’s used, essentially, to remember something about you – a preference, your login status, a setting, or more simply generic information which will help the website serve you better and/or faster content on your next visit. When the site you are visiting is the one places the cookie, said cookie is labelled as “first party cookie” since the cookie’s domain matches the site own domain.
However, a lot of sites also use third party services to better serve their content, so the domain doesn’t always match. In that case the cookies set are called “third party cookies” since they are coming from an external party and not the site you are visiting.
Most of the time, those services are related to advertising and advertisers leveraging these cookies to track your behaviour and browsing history – in order to better tailor their ads based on your interests and on the content you are looking for. Which is a good thing, right?
The ‘Brexit’ Technique.
Problem is, this is (or should I say, was) very often done without any sort of agreement on your part, or even a simple acknowledgement. This has of course, now changed, however in my opinion this change was far too late. What should have been a simple notice became a necessary communication existing because of regulations as an attempt to quench the public’s fear of tracking, instead of a transparency announcement aimed to prevent it.
As many political petitions over past century’s, we’ve scared the general public into action. Words like “privacy notice” and “cookie policy” are popping up everywhere with a host of legal texts. But on the technology level, here’s the irony in all its glory: in order to remember you did not give consent to cookies, a website will drop you a cookie containing this information!
While all of this was happening, tech giants began to make their own changes. And Apple and Google latest announcements are heavily influencing the advertising industry.
Apple
Apple announced on April 24 their latest version of the Intelligent Tracking Prevention, or ITP 2.2 for short. To simplify, Apple is capping cookies persistence on iOS to one day if the cookie falls under one of those categories:
- The website has been classified by ITP as having cross-site tracking capabilities;
- The user clicks a link which results in a cross-site navigation;
- A click takes you on a landing URL with a query string and/or a fragment identifier;
- A persistent cookie is set through ‘document.cookie’ function.
At the end of the announcement Apple points out, and I quote, “We hope web developers will join us in better protecting user privacy while concurrently creating the best user experiences on the web”. While I do not doubt the good intentions, I can’t help but notice how they are not aggressively degrading identity in the apps ecosystem, which incidentally, is their highest margin business by far. In fact, the damages are mostly directed towards the open web which hurts their direct competitors, Facebook and Google, while also pushing users towards apps.
Speaking of Google, they also did their part (well, technically nothing has changed yet) in giving their users a better form of control by announcing on May 7 their promise of an improved privacy when browsing with Chrome. This announcement is nothing new. Infact, this supposedly innovative approach in handling cookies has been a Mozilla prerogative since August 2018 (here’s an example). Still, it shows how Google is merely moving towards the general consensus in terms of browser privacy controls.
There’s also the fact that Google own one of the biggest, if not the biggest, advertising stack currently available on the whole web. Because of that, it’s hard to think they would intentionally hinder their ability to serve personalised ads inside the settings of their own browser. We are yet to see how Google will handle things, but surely even just the announcement alone is good PR exposure given their history with GDPR-related fines.
A Few Free Tips And Tricks.
If your business relies upon Apple customers, here’s a free suggestion: focus advertising on apps, leveraging the advertising ID.
This way, Apple will be helping you indirectly by constantly pushing the users towards the app system – like it or not, the future is going mobile. Don’t waste your time in looking for the perfect workaround for salvage cookies: in the best scenario you’ll find yourself with a laughable data pool, and in the worse scenario Apple will do a 360 and create a walled garden with their own data. You think I’m crazy? Perhaps, but after seeing a four digit monitor stand I don’t want to exclude any possibility.
Let’s look at Google. If your business is worried about the end of the cookie as we know it, here’s another tip: start looking into contextual advertising, which doesn’t rely on cookies at all.
I imagine Google is toying with some real innovation in the background which will end up creating an identification system similar to the one being used for apps, the advertising IDs, but for the browser. This way they’ll be able to both parade their commitment for a better web and still sell you their own advertising stack using “browser IDs”.
The Future Of The Cookie Jar.
The cookie will or will not survive: both scenarios are equally exhilarating.
On one hand, I want to be amazed while researching new cookie-less technologies; on the other I’d be curious to see how deep companies can go in fighting stricter and stricter policies.
I sincerely hope this will be a big eye-opener for everyone in the industry; a strive towards a better future; giving customers the control they deserve while making the whole web experience feel more relevant to them, but without that nagging feeling you are being predated upon by data-hungry monsters.
If you don’t know where to start and I have not bored you to death with this long article, let me recommend you this Internet Draft by Mike West which describes how we could possibly transition from the cookie to something more stable and secure.
The State Of Play In Digital: Empowering Marketers In 2019
In digital media, the last 12 months was a year of planning. Now, 2019 is set to be a year of execution.
That is to say, last year several big new initiatives, challenges and opportunities came to light, already causing convulsions across the industry. But it is this year when those convulsions will become louder.
From new policies to new competitors, 2019 is when marketers will need to make good on the new world they glimpsed last year.
GDPR’s Long Tail
Europe’s new consumer data privacy regulation caused chaos within the digital ad ecosystem. Limits on processing audience data prompted a shrinkage in programmatic inventory supply – and that was no wonder, with publishers like The New York Times ceasing programmatic trading in Europe and others like Hearst’s newspapers ending all publication here.
But GDPR was not a one-time event, it was the start of a process which will be felt more keenly through 2019. The pivot of ad-tech vendors like Drawbridge and Tapad out of a Europe that has become more hostile to identity processing, coupled with the elimination of third-party dataset processing by Google DoubleClick and Facebook, has left many marketers needing to either fill a supplier gap or pivot themselves. 2019 is when an answer must be found.
Customer Data Is The New Black
The likeliest answer had been gathering steam before GDPR hit. Use of a brand’s own data on its own customer and prospects has often sat in the “marketing” function rather than the “advertising” one, and having a marketing relationship with your own audience always seemed like a good idea. But 2018’s new regulations have further reframed the benefits of a “mar-tech” that is now fusing with “ad-tech”.
In 2019, this new emphasis on customer data management will place a greater focus on Customer Data Platform (CDP) software. Brands which may already have implemented a Data Management Platform (DMP) strategy are going to need to reassess the way they integrate advertising and marketing data for privacy-compliant effectiveness in the year ahead.
Consolidation Necessitates A Supplier Review
Last year’s raft of media and telco mega-mergers has set the cat amongst the pigeons – and it’s not over yet.
AT&T’s acquisition of AppNexus, a programmatic marketplace that competes with Google and Facebook, means an environment which had billed itself as the “independent” challenger is now part of a group which has also gobbled up publishers like Turner, CNN, and HBO. The re-integration of Oath into Verizon Media Group continues the dizzying consolidation of the former Oath’s Yahoo, AOL, and the procession of ad-tech suppliers under their wing.
All these major holders are vying to buy up their own ad-tech arsenal. As they do so, suppliers advertisers have come to depend on can change strategy overnight, forcing them to again consider the alliances they need to build.
Into The Amazon
2018 was the year when everyone realized Amazon had a significant advertising business. 2019, then, is when brands must ask themselves: “What’s our Amazon strategy?”
Agencies have been calling for a third leg to the duopoly of Google and Facebook. And they’ve certainly got it – by last October, Amazon’s “other” earnings, largely comprising ad sales, was worth $2.5 billion. But the addition of this new frenemy to this “tripoly” should be scrutinized as closely as all other suppliers.
Marketers will need to understand Amazon’s ad offerings, assess the unique opportunities afforded by its shopper data, and consider the technology ecosystem that makes buying Amazon as easy as the rest of the pack.
Machine Learning Gets Real
If you thought that programmatic made advertising smart, wait until you see what machine learning (ML) can do. Despite the hype, there should be no mystique – machine learning algorithms simply suck up historical data to find patterns that can inform future decisions. Applied to advertising, that means code can use historical conversion patterns to find the best inventory or audience for a campaign – and continually re-optimize those choices, mid-flight, for a huge effectiveness bump.
But machine learning’s complexity can double-down when buyers are faced with selecting and implementing the technology. ML effectiveness got refined last year thanks to training on big datasets. But kicking the tires of algorithms that, by necessity, could operate a million different ways can bamboozle buyers, while some advertisers may need to go beyond off-the-shelf solutions – necessitating they appraise themselves of how data science fundamentals can apply to their business.
Is The CDP Really Killing The DMP?
A Q&A with Umberto Torreilli and Simon Theakston
There’s no escaping it. There are hundreds of articles across the web trying to explain the complex worlds of Data Management Platforms (DMPs) and Customer Data Platforms (CDPs). From myth busting to in-depth white papers, the search bar is producing various responses from various publishers – all trying to make sense of the two hottest data activation technologies available today.
Yet, with recent headlines claiming CDPs to be removing the need for the DMP – it’s becoming, quite frankly, a minefield trying to determine the truth behind the solutions.
So I caught up with co-founders at SBDS to find out exactly what is going on in the land of data, and why these technology platforms are causing such debate.
Q: What are the differences between DMP and CDP?
[SIMON] This question crops up in almost every meeting we have with our clients. As the CDP gains more popularity among industry peers, its unique benefits seem to be overshadowing those held by the DMP – therefore ‘killing’ it in the process. Yet, this simply isn’t the case.
If we had to boil it down to the most macro-level use cases for the technologies – the core difference is that CDPs ingest PII data and DMPs don’t. Therefore:
The DMP is traditionally used to acquire new customers, utilizing the power of data aggregation and modeling to reach more scale through smarter targeting strategies.
The CDP is traditionally used to engage with existing customers with highly targeted messages, utilizing the power of data insights to speak to an individual consumer.
Of course there’s much more beneath the surface of each platform which are explained in our latest DataTech report. But, essentially, one provides tools which are more geared towards acquisition, and the other for individual customer insight and engagement.
[UMBERTO] Adding to Simon’s point, the DMP is designed to serve one core function for marketers and publishers; it manages the collation of data from different sources to categorize and classify that data. It then segments that data so that businesses can effectively target customers at scale.
On the other hand, the CDP has a system of records to manage identified customers, by gathering data from a company’s database, CRM, websites, apps, or transactional systems. This is then used to communicate to the consumer through personalized offers, promotions and customize emails.
Two different use cases. But, both equally important.
Q: So, is the CDP killing the DMP?
[SIMON] No! As an industry, we are far too quick to proclaim the death of technology and innovation before latching onto the “next best thing”. Being in the heart of such a fast-paced industry sector, we often get caught up in the promise of a particular solution – and quickly shut it down when something new and shiny comes along.
What’s more, there is still a lack of understanding around what a DMP actually does.
The best way, we believe, to understand how the two technologies can work together, is by understanding their evolution. Even since the early days of CRM systems, the idea of using data for marketing purposes is nothing new. Yet the digital revolution projected the industry into uncharted waters at extreme speed, meaning the channels of data now available to the marketer are increasingly vast and complex.
[UMBERTO] Pools of data found throughout our businesses, are autonomously packed with customer insight. The appetite for the DMP has been strong to date – and adoption backs this up – with 91% of global marketers having adopted, or planning to adopt, the technology already.
However, the digital evolution didn’t stop there. Even over the past few years we’ve witnessed change; from the continued maturity of the smartphone, and the rise of “AI”, to the adoption of voice command and virtual reality. With every device comes more data, and a pressing need for personalization – it’s no surprise that the appetite for the CDP is starting to rise.
[SIMON] The truth is, the two platforms can in fact work alongside each other in a complimentary manner to support KPIs and business objectives. Many forward-thinking marketers are exploring this approach today, achieving great results.
We just have to understand how.
Q: How are businesses utilizing the two today?
[UMBERTO] This approach is very much in its infancy, and only a handful of businesses are exploring the benefits of the two working together. We’ve worked with a few clients over recent months and have seen some fantastic results in both business goals and revenue streams. You’ll have to read our latest report to find out more!
[SIMON] That brings me nicely to the promotion of our latest thought leadership series. With so many unanswered questions floating around our peers, we thought we’d release our new initiative – the DataTech Report Series – a series of industry reports that delve into the hottest debates that fill industry headlines. The first report explores the complex worlds of the DMP + CDP; are they really enemies as the headlines proclaim? Or are they simply misunderstood? And, can they truly work together to drive business results?
Making Digital Media Work For You: Why Collaboration Is Key
We are now more than two years into the great ad fraud scandal – so how successfully is the industry solving the problem?
Two years ago, an Association of National Advertisers report shone a light on critical issues holding the digital media industry back. Its Media Transparency Initiative revealed a system of agency kickbacks and rebates that was stealing efficiency from digital ad buyers, while ad-tech platforms also stood accused of charging excess fees and giving poor control.
These last two years needed to be – and have been – transformative for anyone involved in the supply chain. Fraud, backhanders, data misuse and loss of trust have been unavoidable in the headlines, and a number of leading players have taken significant steps in addressing them.
Since then, advertisers have become much more demanding buyers, heeding a number of best practices that some have long advised – insisting on only verified ad inventory, demanding viewability, and only buying when prices are fully transparent.
Many ad-tech platforms have made pretences to move in exactly this direction – and some stayed true to their word. But relying on these third parties to do so is still leaving many ad buyers with a sense of inequity, and Juniper research still suggests the global cost of ad fraud will more than double to $44 billion by 2022.
Yet, advertisers should not have to work so hard to wrestle with their suppliers. They need to be empowered. And the best of way of doing so is by seeking out the support of industry groups with their best interests at heart.
JICWEBS
The Joint Industry Committee for Web Standards is an independent body representing all sides of the advertising industry in the UK and Ireland, and comprising the IPA, ISBA, AOP and IAB.
Since September 2017, it has been auditing dozens of ad sales platforms and publishers for brand safety, ad fraud, viewability and content verification tools. Any ad buyer considering a platform purchase can today check suppliers against the high standards set by JICWEBS.
And JICWEBS offers even more support than this. Its Traffic Taxonomy outlines the 16 different types of fraudulent traffic to beware of, while a range of “be
TAG
How can you reduce instances of ad fraud by 84%? By selecting distribution channels certified by the Trustworthy Accountability Group (TAG).
Another super-collective of industry groups, TAG offers a similar certification for US-based ad-tech suppliers and, after opening a UK office in 2018, is also aligning with JICWEBS. One study has shown how using a TAG-certified channel cuts the rate of invalid traffic to just 1.48%, whilst TAG also offers certification for platforms against malware and piracy.
By picking from approved suppliers, buyers can better arm themselves in the fight against ad crime. Now I’d call that empowerment.
IAB
Certification systems like these better arm to make smarter decisions about the platforms they choose to use. But what if we could also bake an approval system into the very fabric of the ad-buying process itself?
That’s what the Interactive Advertising Bureau (IAB) has done, with the creation of Ads.txt. Deceptively simple, this system involves publishers placing a file on their server which mandates the supply-side platforms which are actually allowed to trade their ad inventory.
With Google now filtering for Ads.txt, the IAB’s offering is already helping empower buyers who don’t want to fall foul of domain spoofing, the dark art through which nefarious operators purport to own other publishers’ legitimate ad inventory.
When it comes to the digital ad supply chain, effective relationships with third parties are paramount. Ad buyers should feel empowered to make demands to their ad-tech operators to ensure they get the desired results.
What I hope will happen in 2019 is that buyers will go one step farther – that they will rely on help available from trusted third parties to become more powerful and successful parts of the supply chain.
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