Google cookie changes—how advertisers are searching for new ad tech to prepare

The ad industry is taking more concrete steps to stay on top of the transition to a world without cookies as Google plans to deprecate the internet trackers by the end of the year. In fact, nearly 80% of advertisers are training, or plan to train, their staff in topics related to data and privacy, partly as a result of the pending demise of cookies, according to an annual data report published today by IAB, the ad industry trade group. Almost half (48%) are hiring experts to advise on post-cookie ad technologies, and 49% are creating dedicated teams for the same reason. Google began turning off third-party cookies at the beginning of the year, and it has been developing new ways of running programmatic ads on Chrome web browsers through what it calls Privacy Sandbox. Privacy legislation and signal loss, or the diminished ability to attribute data to customers, has already impacted the operations of more than 80% of advertising organizations, according to the report, which surveyed 500-plus advertising and data experts at brands, agencies and publishers. The shakeups reflect the fact that a once-distant concern has become a reality for the ad industry. Google's Chrome browser accounts for more than 60% of the browser market, and its cookie changes will have wide-reaching effects on publishers, advertisers and ad tech vendors. Google's plan to kill cookies had stalled in the past, which pushed back the timeline and created less urgency in the industry to adopt alternatives, but IAB's report shows that stakeholders are now taking the ad tech evolution seriously. In contrast, in its 2022 data report, IAB found that the majority of the industry was not taking the necessary steps to adapt their data approaches and operations. Now, nearly nine in 10 ad buyers are shifting personalization tactics, ad spend, and data strategies, as they expect more signal loss and privacy legislation this year. They’re also investing more ad spend in channels that don’t hinge on cookie-powered tracking, such as connected TV, retail media, search and social networks, according to IAB. See all of Ad Age’s 2024 Agency A-List winners here More than half (55%) of respondents expect continued data disruptions to make it harder to track conversions, attribute campaign and channel performance, and measure their return on investment. More ad industry players are investing in first-party data solutions, which have become a priority for advertisers as cookies go away. More than 70% of brands, agencies, and publishers are growing, or plan to grow, first-party datasets compared to the 41% that were doing so two years ago, when IAB last asked the question. So far, Google cut cookies on 1% of traffic coming through its browser and it wants to reach full deprecation in the second half of the year, but advertisers aren’t confident in the timeline. Less than half (42%) of respondents expect full deprecation to occur this year, IAB found. That could be one of the reasons some advertisers aren't testing Privacy Sandbox, Google’s post-cookie ad platform. IAB found that 57% of advertisers are using, or plan to use, the system this year. Also read: Inside Google and The Trade Desk’s post-cookie battle Privacy Sandbox is far from the only cookie alternative available. Major ad tech firms, such as The Trade Desk and LiveRamp, are developing alternative advertising IDs, which rely on first-party data to enable ad targeting and measurement without cookies. Also, cookieless channels such as retail media and connected TV continue to gobble up spend. And older measurement tactics, such as marketing mix models, are seeing a resurgence. Google this month launched an open-source platform called Meridian that leverages this method. Compared to Google, Apple was more abrupt in its transition away from outdated trackers. The iPhone maker outright banned third-party in Safari starting in 2017, and the repercussions are still being felt by ad-dependent companies such as Snap and Meta. Advertisers appear to be wary of Apple’s ecosystem. Most advertisers that made iOS buys in 2023 will not increase spend there in 2024, according to IAB’s report. Roughly 70% expect continued deprecation of signals and identifiers, and 61% expect a reduced ability to personalize messaging on Apple iOS.

Google cookie changes—how advertisers are searching for new ad tech to prepare

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