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Hint: It’s why every site asks you to accept cookies.

You’ve seen the pop-ups: “This site uses cookies to improve your experience. Please accept cookies.”


 

It’s true, cookies do improve your experience. They function as the website’s short-term memory. With each new click you make, cookies help the site identify you as the same person. Imagine every time you add something to your cart and click away, it disappears. Or each time you load a new page on Facebook, you have to log in again. Without cookies, the online world we know today wouldn’t exist.

But that world relies on advertising, which gives three kinds of companies a strong incentive to repurpose cookies to track your online behavior. Brands want to sell products by serving you ads for things you’re likely to buy. Platforms and publishers want to make money by serving those ads when you’re on their site. And middlemen are in the business of ensuring the ads from the brands are delivered to the right people.

A building block of our online world has become a tool to track you wherever you go in it. And now that browsers like Safari and Firefox are fighting back, the digital advertising industry is looking for new ways to follow you online.

In this video, we explain how cookies work and what you should know about how they’re being used. We even get a little help from the man who invented them.

You can find this video and all of Vox’s videos on YouTube. And join the Open Sourced Reporting Network to help us report on the real consequences of data, privacy, algorithms, and AI.

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Sourced from VOX

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Marketers must stop prioritising strategies built around cookie data if they’re to succeed in the 2020s. Speaking on a panel at The Drum’s Predictions 2020 event at Sea Containers this week, Andy Chandler, Adjust’s VP for UK and Ireland, called for brands to evolve in the post-cookie world and start to work out whether they’re truly adding value to their customers’ lives.

“With Google Chrome getting rid of third party cookies, brands need to start looking at data differently or they’re going to very quickly get left behind,” he explained. “We are moving into a cookie-less world, where consumers are interacting more with apps than browsers, so the way we measure data needs to truly reflect that. We need to keep evolving and keep up with where people are, ensuring we add real value to their lives.”

A recent feature by The Drum explored the impact of Google’s plans to “render third-party cookies obsolete” and how brands must now respond. According to Ed Preedy, chief revenue office at Cavai, one solution could be for brands to use online messenger apps to speak directly to their consumers. He says messenger apps can ensure more tailored advertising and better conversion rates when it comes to making a purchase.

He added: “In 2019, there were 73 trillion posts across all messaging apps. And in markets like APAC and Latin America, something like 63% of consumers purchased over a messaging app or spoke directly to a business. These are becoming hotbeds for commercial opportunity and it will only grow in the decade ahead in the UK too.

“Messaging apps allow for a genuine two-way interaction. They qualify what users want and who they are almost instantly, so therefore the advertising that runs is contextually relevant. They will become so much more important as cookies start to dissipate. I think there will be a wider move to more personalised platforms, where advertising is less random.”

It was a frank assessment that Tanzil Bukhari, managing director for EMEA at DoubleVerify, very much agreed with. He insisted consumers now want to see more relevant advertising and that getting rid of cookies will ensure this happens more consistently. “The Google Chrome announcement will mean publishers have to offer much richer and directional content, and that’s only a good thing.”

Using data in the right way

But there was also a message of caution in the air, with Vodafone’s brand director Maria Koutsoudakis warning that brands and agencies who prioritise data too heavily risk becoming irrelevant, on a panel earlier that morning alongside Ogilvy CEO UK, Michael Frolich. Koutsoudakis asked the audience: “When was the last time you spoke to a customer? If you stood back from click attributions and A/V testing then what do you really know about your customers now?

“By only really focusing on data, there’s a risk we create a generation of marketers who don’t understand brand, consumers or behavioural change and aren’t agile enough to cope with it. There needs to be more of a blend of people being on the ground, really speaking to their customers, as well as having a good data strategy. If marketers only care about digital metrics then there’s a risk they become irrelevant in marketing in the 2020s.”

With consumer data obviously so important to the UK mobile network’s business, she admitted it has taken a back step to ensure it’s precious about protecting it. “We don’t sell this data as we can’t afford to lose our consumers’ trust,” she admitted. “Being so cautious might mean we get left behind, but I think it’s worth it as we can’t take any chances.”

Frolich agreed with Koutsoudakis’ sentiment. In the 2020s, he said ad agencies shouldn’t be using client and third party data unless they can absolutely prove it has a positive impact on creativity and this in turn enriches the lives of their customers.

“We aren’t a data company, we are a creative agency,” he insisted. “We use client data and third party data to feed our creativity and build better work that consumers then enjoy. If you’re using this data and it isn’t creating better human insights then you’re using it incorrectly.

“Agencies have bought big data companies and it isn’t working because they’re not using the information to create better marketing. If we can work with a client like Vodafone and use their data to feed better creativity then we’re winning.”

The sentiments around trust were picked on another panel, where Courtney Wylie, VP of product & marketing, Mention Me had a word of caution: “We’re going to continue to see this evolving trend of lack of trust. A declining trust in influencers, brands, marketing channels.”

However, the way the relationship between agencies and brands works will become a lot more adaptable over the coming years, with a one-size-fits-all approach now completely redundant. John Readman, CEO & Founder, Modo25, explained: “In past there were only two options: work with an agency or do something in-house, but we will see these lines blurring more and more. There’s no reason why a combination of both won’t be the best way forward.”

Talking about the way forward, Andrew Challier, chief client officer, Ebiquity predicted that the industry will finally see “the rebirth of creativity and the importance of creativity in engaging people and reaching people in a meaningful way.”

A more ethical way of thinking could impact Facebook and Amazon

As we move further into the 2020s, some of the event’s panellists warned that established retailers and social media brands could start to fall short, as consumers switch to a more ethical way of thinking.

“Yes, lot’s of people still buy off Amazon, but the fact Brits also want to become more engaged with their local community means independent retailers should be confident heading into this new decade,” predicted Hero Brown, founder of Muddy Stilettos.

She explained further: “We’ve noticed a real shift in our readers wanting to support the high street more and more, and there’s this ethical thinking coming through, which could be detrimental to an Amazon. Shoppers want real-life experiences, even from online brands. They’re starting to get tired of faceless fast transactions and want to see brands brought to life in a more physical way. This trend will only intensify in 2020.”

Meanwhile, Darren Savage, chief strategy officer at Tribal, would like to see Facebook’s dominancy recede in the social media space. “I think major firms who consistently lie will come unstuck in the 2020s as people won’t put up with it anymore,” he said. “An immoral toxic cess-pit like Facebook will come tumbling down.

“The blatant lies they tell around consumer data will mean people will leave the platform in much bigger numbers. Truth is more important than ever before and just being a big business isn’t going to protect you if you mislead consumers.”

Proving you’re making a difference

This ethical way of thinking also extends to a brand’s commitment to sustainability, and Misha Sokolov, co-founder of MNFST, believes this will only rise in importance over the coming years.

“I spoke recently to someone at the Volkswagen Group and he was telling me how they calculated they were responsible for 1% of all global emissions, and that’s why they now want to be carbon neutral within 10 years,” he said. “The smartest brands won’t just put a nice message on their packaging, but do something that has a provable positive impact on the environment and helping reduce climate change. It must happen automatically as brands will lose market share if consumers don’t think their being ethical enough. There’s no excuse in the 2020s.”

And businesses shouldn’t just think of sustainability in environmental terms either, with it also being just as wrapped up in how a brand and business treats its employees. Stéphanie Genin, global VP of enterprise marketing at Hootsuite, says employee advocacy will be a huge trend moving forward, as consumer want to ensure their favourite brands treat their staff good before supporting them with a purchase.

She added: “Employee advocacy and employee generated content will become so so important. When you empower employees to be the communicator of what your business stands for it really adds to brand value and boosts sales. I think marketers are missing a trick by not prioritising this more heavily.”

However, Readman, added none of this will work unless it’s part of a global governance policy. “It’s all good being sustainable and doing good things for employees in one market, but if it’s not something you’re doing consistently across the board then consumers will work it out and there will be a backlash.”

Meanwhile, for John Young, executive creative director and co-founder, M-is, as brands start to really understand the consumers through personal engagagement, “the advertising budgets will transfer into experiential budgets.”

Be as safe as possible

Another topic of conversation that came up throughout the day was brands ensuring the data they keep on consumers remains safe, especially as more and more of their ads are traded programmatically.

Francesco Petruzzelli, chief technology officer at Bidstack, said that 13% of global ads are currently fraudulent and that while major brands know it’s a “big issue”, they’re not necessarily doing enough to prevent it. “We acquired a publishing guard to protect publishers, but I find a lot of people aren’t thinking seriously enough about this issue. It won’t go away!”

Dan Lowden, chief strategy officer at Whiteops, added how he recently worked with a major brand who believed bots were accounting for up to 5% of fake views of its £10m campaign, but says his team worked out they were actually accounting for 36% of traffic.

Looking ahead, he concluded: “The bad guys aren’t going to let up and will keep on persisting with cyber crime in the 2020s. We all need to be serious about tackling this problem and do more to collaborate as an industry to ensure that marketing dollars are genuinely being spent on human engagement and not just robots.”

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Sourced from The Drum

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Are you ready for a Google-centric advertising world?

That’s what is about to happen. Last week saw Google announce it will be phasing out third-party cookies from Google Chrome. Chrome represents almost 70% of the market for web browsers on a desktop and 40% in mobile. Safari, Firefox and Microsoft have the rest, and many of them already include ad blockers, cookie-clearing and other tools that hamper digital targeting.

Google is going to offer its own ways to target leveraging Google data, which means if you work at an ad-tech company not named Google (or Facebook or Amazon, for that matter) then your ability to deliver targeted ad messages is going to be severely impacted.

This news does not come as a surprise. It has been rumored for years. And now it is coming to fruition.

Some industry pundits will make claims that this creates an opportunity for new ways to reach targeted audiences by proclaiming their technology does X or Y. These will be versions of fingerprinting or ad-DNA.

In any case, these claims will fall on deaf ears. The truth is that most marketers will see this, understand the impact, and move on. Moving on means they will either work with Google, or not worry about targeting, instead focusing on price.

A world where a third-party solution like the cookie is gone means prices will be pressured to drop to account for the untargeted nature of online advertising outside the Google parameters.

Google will still offer targeting. That targeting will be at a premium because it offers one of the only accurate ways to deliver a specific audience at scale. Outside of Google, ads will be scattershot, delivered to anyone on a platform where they come up.

The only way untargeted ads will work for marketers is if they are lower priced, to account for lower response rates. Then, just maybe, they have a chance to compete.

OTT and digital video ads may still have the opportunity to “target” based on data or context, but display will take a step back because the performance will be harder to achieve.

This does open the door for Facebook, strangely enough. Paid social is a channel where data can still be leveraged — although that will be using Facebook data on Facebook platforms. The dollars that were still hanging on for targeted display and native ads could easily be seen to shift to paid social, further padding the pockets of Facebook, Twitter and LinkedIn.

Google said it has no desire to injure publishers looking to make money from ads, and it’s telling the truth. Its intent is to create a stronger sense of demand for Google products, and doing so does mean a negative impact on anyone not currently in its network.

The marketers are the ones who will drive this adoption. Marketers like to work with Google. No matter how many ad-tech companies call, reach out and proclaim to have an amazing solution, Google still gets the benefit of the doubt.

A marketer’s day is busy. There are many demands on our time, and we don’t have hours upon hours to decode and test a new vendor whose solution may be great, but has questions of scale.

Speaking from my own perspective, I like new ideas and new solutions, but I prioritize the ideas that have the most bang for the buck. Most of the time, that defaults back to the larger, established players we currently work with and who have proven to provide scalable value in the past.

So, what does that mean for the industry? It means cookies are about to (finally) become a relic of the past, along with popups, pop-unders and 468x60s. It means the gap between the large players and the smaller niche players is about to widen even further. It means OTT and digital video are about to become the final battlefield for the remaining digital ad budgets.

Here’s to seeing what happens in the next 11 months!

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Sourced from MediaPost

By Lucinda Southern,

With the digital advertising ecosystem under attack on multiple fronts, from browser-tracking restrictions to tightening-privacy regulations, publishers are wringing more value out of their audience data.

Over the last 18 months,Time Out has been honing its audience segments since switching to first-party data-based data-management platform, Permutive. During that time, it’s scaled back to five core audience interest areas: Things to do, restaurant-goers, culture vultures, travel and family. These core audience segments have been further carved up as the team has tagged the site’s content under the most relevant and accurate categories. It now has around 170 different segments to offer advertisers covering a broad range, including art enthusiasts, Black Friday lovers, country explores and vegan champions.

The purpose: Gaining visibility over its addressable audience to then identify and target every user on their first visit to the site within 100 milliseconds. Targeting users while they are still on-site, showing them the right ad based on their interests and browsing behavior, reduces waste and, in theory, boosts ad effectiveness.

“It’s all about scale,” said Robyn Bartholomew, director of digital ad sales at Time Out Media. “How we can increase scale for campaigns, how we can increase lookalike models, how we can increase overlapping audiences and which segments index highly so we can bolster our overall reach.”

According to the publisher, the scale of Time Out’s audience was previously untapped due, in part, to inaccurate tagging. Now, the addressable audience pool has increased fivefold. It can also track reader behavior much quicker than previously, which ranged between 24 and 48 hours. Speeding up this process lets the ad team feed back to editorial teams who can make content decisions based on what people are reading.

Time Out can now show how segments overlap too, for instance, 90% of music lovers are also in the entertainment segment, or 44% regularly read the Things to do section, or are three times more likely to also fall into the dance-lovers segment. This level of detail means it can recommend who to target for future campaigns, giving clients a deeper understanding of how audiences engage with the site, a capability Time Out has been pitching in the last few months to U.K. agencies.

While the publisher has been on a mission to diversify revenues from advertising into commerce, events and food halls, digital advertising is its largest revenue source. In the first six months of 2019, it generated £7.3 million ($9.7 million) in revenue from digital advertising, a 4% increase from the same period the previous year, according to its financial results. Although it was unwilling to split out how much revenue was generated by interest in its ramped-up targeting capabilities.

Another hurdle that previously thwarted Time Out’s audience size is the crackdown from Safari and Firefox browsers on third-party tracking cookies. Around 49% of Time Out’s audience are iPhone users and so have the potential to go dark now Apple has unfurled Intelligent Tracking Prevention in Safari to stop companies from monitoring user behavior across the web. Using Permutive, TimeOut can recoup visibility of its audience because it does not rely on third-party cookies which are blocked by Safari and Firefox.

“[The impact] is not necessarily CPMs dropping,” said Bartholomew, “it’s more about how big the audience pool is and being able to target those people in the user segments. It’s a lot smaller by the time you push it through [Google Ad Manager] DFP, the avails just wouldn’t be there. Once you get down to criteria like device targeting the number of users dwindles significantly.”

Increasingly, publishers are finding new ways to make their first-party data sweat, targeting audiences at scale without relying on third-party cookies and expanding how that audience can be monetized. Publishers like The Washington Post, Insider Inc. and Immediate Media are exploring beyond-the-cookie strategies though more granular targeting around audience intents, behaviors, sentiments and interests. It all tallies up to new ways of commercializing publisher audiences and pitching new capabilities to advertisers.

Another opportunity for Time Out, thanks to its e-commerce business, is overlaying purchase data, so advertisers can target people who bought Taylor Swift concert tickets last year or who regularly visit the Royal Opera House.

Like other publishers, the race is on to grow logged-in users, a more overt declaration of user identity not reliant on first-or third-party data. Time Out has a small cohort of people who log in to access functions like leaving restaurant or show reviews. But to grow this it needs to understand what would encourage readers to share an email address in, whether that’s more tailored content or ads, to maintain a healthy identity-based advertising revenue stream.

By Lucinda Southern

Sourced from DIGIDAY