The cookieless future is here, and it’s time to start thinking about how you will adapt your strategies to this new reality. In a cookieless world, you will need to find new ways to identify and track users across devices. This will require reliance on first-party data, contextual advertising, and alternative identifiers that respect user privacy.
To shed light on this topic, we hosted a panel discussion at Cannes, featuring industry leaders from Cint, Direct Digital Holdings, the IAB, MiQ, Tatari, and Experian.
In this blog post, we’ll explore the future of identity in cookieless advertising. We’ll discuss the challenges and opportunities that this new era presents, and we’ll offer our tips for how to stay ahead of the curve.
How cookieless advertising is evolving
Programmatic advertising is experiencing multiple changes. Let’s dive into three key things you should know.
Cookie deprecation
One significant change is cookie deprecation, which has implications for tracking and targeting. Additionally, understanding the concept of Return on Advertising Spend (ROAS) is becoming increasingly crucial.
The demand and supply-side are coming closer together
Demand-side platforms (DSPs) and supply-side platforms (SSPs) have traditionally been seen as two separate entities. DSPs are used by advertisers to buy ad space, while SSPs are used by publishers to sell ad space. However, in recent years, there has been a trend toward the two sides coming closer together.
This is due to three key factors:
The rise of header bidding
Header bidding is a process where publishers sell their ad space to multiple buyers in a single auction. This allows publishers to get the best possible price for their ad space, and it also allows advertisers to target their ads more effectively.
Cookie deprecation
As third-party cookies are phased out, advertisers need to find new ways to track users, and they are turning to SSPs for help. SSPs can provide advertisers with data about users, such as their demographics and interests. This data can be used to target ads more effectively.
The increasing importance of data
Advertisers are increasingly looking for ways to target their ads more effectively, and they need data to do this. SSPs have access to a wealth of user data, and they’re willing to share this data with advertisers. This is helping to bridge the gap between the two sides.
The trend toward the demand-side and supply-side coming closer together is good news for advertisers and publishers. It means that they can work together to deliver more relevant ads to their users.
Measuring and tracking diverse types of media
The media measurement landscape is rapidly evolving to accommodate new types of media, such as digital out-of-home (DOOH). With ad inventory expanding comes the challenge of establishing identities and connecting them with what advertisers and agencies want to track.
Measurement providers are now being asked to accurately capture instances when individuals are exposed to advertisements at a bus stop in New York City, for example, and tracking their journey and purchase decisions, such as buying a Pepsi.
To navigate cookieless advertising and measurement, we must prioritize building a strong foundational identity framework.
What you should focus on in a cookieless advertising era
In a cookieless advertising era, you will need to focus on two key things: frequency capping and authentic identity.
Frequency capping
Frequency capping is a practice of limiting the number of times an ad is shown to a user. This is important in cookieless advertising because it helps to prevent users from being bombarded with ads. It also helps to ensure that ads are more effective, as users are less likely to ignore or click on ads that they have seen too many times.
Frequency capping is often overhyped and yet overlooked. Instead of solely focusing on frequency, consider approaching it from an identity perspective. One solution could be to achieve a perfect balance between reaching a wider audience and avoiding excessive repetition. By increasing reach in every programmatic buy, you naturally mitigate frequency control concerns.
Authentic identity
The need for authentic identities in a digital and programmatic ecosystem is undeniable. While we explore ways to connect cookies, mobile ads, and other elements, it’s crucial to remember who we are as real individuals. By using anonymized personal identifying information (PII) as a foundation, we can derive insights about households and individuals and set effective frequency caps across different channels.
Don’t solely focus on devices and behaviors in your cookieless advertising strategy and remember the true value of people and their identities.
What’s next for cookieless advertising?
The deprecation of third-party cookies is a major challenge for the digital advertising industry. Advertisers will need to find new ways to track users and target their ads.
Here are three specific trends that we can expect to see in cookieless advertising.
First-party data is moving in-house
Many major media companies, equipped with valuable identifier and first-party data, are choosing to bring it in-house. They are focused on using their data internally rather than sharing it externally.
“Many larger media companies are opting to bring their identifier and first-party data in-house, creating more walled gardens. It seems that companies are prioritizing data control within their own walls instead of sharing it externally.”
laura manning, svp, measurement, cint
Fragmentation will continue
The number of identifiers used to track people online is growing rapidly. In an average household, over a 60-day period, there are 22 different identifiers present. This number is only going to increase as we move away from cookies and toward other identifiers.
This fragmentation makes it difficult to track people accurately and deliver targeted advertising. This means that we need new identity solutions that can help make sense of these new identifiers and provide a more accurate view of people.
A portfolio of solutions will address signal loss
Advertisers are taking a variety of approaches to cookieless advertising. A few of the solutions include:
- Working with alternative IDs.This refers to using alternative identifiers to cookies, such as mobile device IDs or email addresses. These identifiers can be used to track people across different websites and devices, even without cookies.
- Working with data index at a geo level. This refers to using data from a third-party provider to get a better understanding of people’s location. This information can be used to target ads more effectively.
- Working with publisher first-party data that’s been aggregated to a cohort level. This refers to using data that is collected directly from publishers, such as website traffic data or purchase history. This data can be used to create more personalized ads.
- Working with contextual solutions. This refers to using contextual data, such as the content of a website or the weather, to target ads. This can help to ensure that ads are relevant to the user’s interests.
“Cookie deprecation is often exaggerated, and alternate solutions are already emerging. As data moves closer to publishers and first-party data gains prominence, the industry will adapt to the changes.”
mark walker, ceo, direct digital holdings
There is no one-size-fits-all solution for cookies, and you will need to be flexible and adopt a variety of different approaches.
How will these solutions work together?
You can take a waterfall approach to cookieless advertising. A waterfall approach is a process where advertisers bid on ad impressions in sequential order. The first advertiser to meet the minimum bid price wins the impression.
In the context of cookieless advertising, a waterfall approach can be used to prioritize different targeting signals. For example, you might start by bidding on impressions that have a Ramp ID, then move on to impressions that have a geo-contextual signal, and finally bid on impressions that have no signal at all.
This is a flexible approach that can be adapted to different needs and budgets.
Watch our Cannes panel for more on cookieless advertising
We hosted a panel in Cannes that covered the future of identity in cookieless advertising. Check out the full recording below to hear what leaders from Cint, Direct Digital Holdings, the IAB, MiQ, Tatari, and Experian had to say.
Check out more Cannes content:
- Our key takeaways from Cannes Lions 2023
- Insights from a first-time attendee
- Four new marketing strategies for 2023
- Exploring the opportunities in streaming TV advertising
- Maximize ad targeting with supply-side advertising
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In our Ask the Expert series, we interview leaders from our partner organizations who are helping lead their brands to new heights in AdTech. Today’s interview is with Samantha Zhang, Senior Data Scientist, and Jim Meyer, General Manager of the DASH TV Universe Study at the Advertising Research Foundation (ARF). DASH is an annual tracking study conducted by the ARF to define and better understand TV audience behavior and household dynamics. What does DASH measure, and how does it help the industry understand TV consumption today? By capturing hundreds of individual- and household-level data points from each respondent in a rigorous and nationally projectable sample, DASH creates a comprehensive picture of U.S. consumer TV “infrastructure” – how America watches. Core elements in DASHElements that create context in DASHTV setsLocation | brand | smartness | service modes | sources DemographicsConnected devices Game consoles |video players | streaming devicesYesterday viewing Daypart | TV/device genre | Out-of-home viewingMobile devicesOwners | sharing usersShoppingOnline and in-store | Exposure to major RMNsInternet serviceModes | ISPs | connectivity by device Streaming audio Streaming TVSVOD/AVOD tiers and sharing | FAST Email accounts and apps Live TV Modes of access | including casting from devices Social media For example, DASH gathers: Data on every TV set, including brand, room location, age, “smartness,” and connection devices and modes Household connectivity and video service data, even in homes with no TV set Internet Service Providers (ISP) and TV service usage, including Multichannel Video Programming Distributors (MVPDs), virtual vMVPDs, streamers (ad-supported and premium), and Free Ad-Supported Television (FAST) channels Person-level ownership and usage of video-capable mobile devices, including smartphones, tablets, and laptops Measures of viewing and co-viewing across dayparts, devices, and services Additional modules covering shopping and retail media networks, streaming audio, social media, email, and apps Broad coverage and granularity make DASH a uniquely robust source of truth for practitioners across the industry, including measurement experts and ad programming strategists. DASH also reports regularly (and publicly) on key industry dynamics. DASH identified a growing segment of device-only viewers – now nearly 9 million households that watch TV, but do not own a TV set – and highlighted the implications of that trend for traditional ratings systems based only on households with TV sets. Households (HHs – million)2025 HHs (M) U.S. penetrationChange vs. 2024 (M)Total US134.8100%+2.7Connected TV (CTV)114.685%+2.1TV (Set)124.292.2%+1.1Device-only8.86.6%+1.6TV-Accessible133.198.7%+2.7 DASH called out the rise in app-based pay TV and proposed a new connection framework that better represents the modern TV world, in which linear and streaming overlap. DASH also defines the universes of households reachable with advertising. This graphic, for example, shows how all ad-supported linear and streaming properties in aggregate define the true scale of TV advertising. While 35 million households (and growing) are reachable only with streaming ads and 13 million (and falling) only with linear ads, most households are reachable with both, underscoring the importance of understanding the “overlap.” Who uses DASH data, and what decisions does it help inform? There are three primary users of DASH, each with its own use cases: Measurement providers, including Nielsen, use DASH to calibrate viewership data, turn household data into persons data (and vice versa) and estimate potential reached audiences–what the providers call media-related universe estimate (MRUEs)–for the calculation of ratings. Not surprisingly, measurement companies were the first to see the value that an independent TV universe study could provide. Media companies, including major broadcasters and streamers, use DASH to add context and color to their ad sales presentations – and to track the measurement providers, whose ratings play a major role in valuing ad inventory. AdTech companies, including Experian, use DASH to create high-value audience segments for activation. The recent accreditation of DASH by the Media Rating Council (MRC) and adoption by Nielsen as an input to its TV ratings have generated interest from a broad range of companies. We are actively pursuing new licensees and partners to make DASH more useful within, and even outside, the TV ecosystem. What does MRC accreditation signify, and why is it meaningful for DASH? MRC accreditation means DASH passed a rigorous audit conducted by Ernst & Young over many months, which validated our methodology, controls, and data quality. MRC accreditation establishes that DASH is an industry-standard dataset. While the service provider normally announces its own accreditation, the MRC took the unusual step of issuing its own release on DASH, announcing the accreditation of DASH for TV universe estimation and endorsing the study for broader, cross-media use. How does Experian use DASH data to build audiences? The segments combine specific TV usage habits and behaviors from DASH with Experian data on demographics, spending, and other contextual inputs to create a fuller view of consumer viewing behavior. They are designed to be valuable to advertisers in many categories and planning contexts – and to be customizable to fit advertisers’ media targets. The segments can be used to: Apply or suppress audiences to improve target coverage across a campaign Better align media and creative Reach elusive but high-value viewers, such as Ad Avoiders Drive valuable consumer behavior Achieve specific advertising objectives What are some practical use cases for DASH-based audiences? Here are some practical use cases for four different kinds of DASH segments in five different advertiser categories. Travel Co-WatchersA couples-only resort uses TV Co-Watching Households without Children to strengthen target reach and ad memory recallA big theme park destination uses TV Co-Watching Households with Children to reach families in moments of togetherness Home Entertainment TV Owners and Brand LoyalistsA premium TV manufacturer uses the overlap of Multi Brand TV Owners and Single Brand TV Loyalist Households to market its newest TV model to its most loyal consumers. Fast Food Screen Size ViewersA fast food chain with a high-impact new brand campaign uses Large Screen TV Viewers to better align the media and creativeThat same fast food chain uses Small-Screen TV Viewers to drive store traffic by increasing exposure of its retail campaign among on-the-go viewers Financial Services Cord Cutters A personal cost management app and a cash-back credit card target Streaming-First Cord Cutter Households to reach young, tech-savvy, cost-conscious consumers Thanks for the interview. Where can readers learn more about DASH? We started work on DASH seven years ago, and it’s been fun to watch it “grow up.” Our partnership with Experian is a big step toward putting DASH to work for advertisers and agencies. To learn more, visit our site at https://theARF.org/DASH or contact us at DASH@theARF.org. Contact us About our experts Samantha Zhang, Senior Data Scientist at ARF Samantha Zhang is a Senior Data Scientist at the Advertising Research Foundation working on the DASH TV Universe Study, with additional research spanning areas including attention measurement, digital privacy, and artificial intelligence. Jim Meyer, General Manager, DASH, at ARF Jim Meyer is general manager and co-founder of the ARF DASH TV Universe Study and managing partner of Golden Square, LLC, which advises media and research technology companies on growth strategy and development. Latest posts
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