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Digital Essays 2024: The cookie-less revolution

From clean rooms to alternative IDs, UM’s Abdelnabi Alaeddine shares strategies brands need to thrive in a privacy-first digital landscape.

Abdelnabi Alaeddine
Abdelnabi Alaeddine, Regional Director – Digital & Partnerships, UM MENAT on a cookie-less revolution.

The end of third-party cookies is no longer a question of if, but when. Yet Google’s recent announcement grants cookies a temporary reprieve. This should not mean brands hit pause on preparations for a cookie-less future. Instead, we should use this extension to intensify efforts, evolving our strategies to navigate an increasingly privacy-focused digital landscape. While Google may delay, other tech leaders – Apple and Firefox – have already moved beyond cookies, and new global privacy laws could accelerate changes in data collection standards at any time. Brands must act now, establishing resilient, long-term data strategies that withstand regulatory changes and tech disruptions alike. So, how can brands prepare for a world without cookies?

Onboarding and enriching first-party data

First-party data is information collected directly from owned channels – websites, apps, CRM systems, or point-of-sale interactions. It offers brands a foundational layer of data they can control and leverage across multiple platforms. However, maximising the utility of first-party data isn’t without challenges. One common issue is addressability and scalability. Matching the data fields from a brand’s internal systems to online platform signals often results in low match rates. To tackle this, advertisers should work with agency partners to integrate clean room solutions. Clean rooms are secure environments where advertisers, publishers, and data providers can collaborate on data without risking user privacy. Through anonymisation and data aggregation, clean rooms enable advanced analytics and insights while preserving personally identifiable information (PII). They allow brands to combine first-party data with second- and third-party data, pushing enriched segments into online platforms with higher match rates. With clean rooms, brands often see match rate improvements and a 60 per cent increase in available impressions, driving more targeted and efficient ad placements.

Leveraging second-party data 

Second-party data is another powerful tool in a cookie-less strategy. This type of data comes from trusted partners who agree to share their first-party data with you. By tapping into data from partners – like a food brand’s audience of ‘foodies’ or a sports network’s ‘footfall fans’ – brands can target specific audiences with higher relevance.

Second-party data extends the reach of your own insights, enhancing targeting precision. By working with compatible partners, brands can develop a comprehensive understanding of audience behaviours, enabling campaigns that resonate across shared segments.

Exploring alternative ID solutions 

As the era of cookies winds down, alternative ID solutions offer a pathway to maintaining effective ad targeting while respecting user privacy. These solutions effectively replace cookies by working within the browser environment and taking a more privacy-centric approach.

There are two primary types of alternative IDs:

Deterministic IDs: Based on user-provided information such as email addresses or customer IDs, deterministic IDs create a secure, encrypted identifier. This approach works well for logged-in users but may have limited reach, as not all users log in or opt in for data sharing.

Probabilistic IDs: Using non-personal identifiers such as device type, screen resolution, or IP address, probabilistic IDs develop a unique ‘fingerprint’ to rcognise users. While it doesn’t rely on personal data, this method may have challenges tracking users across devices, as companies like Apple continue to refine their privacy controls to prevent tracking without consent.

Alternative IDs bring promising advancements, yet they face scrutiny from tech giants and privacy advocates. Brands should stay updated on the evolution of these solutions to ensure compliance while making data-driven decisions.

While Google’s recent announcement offers some breathing room, brands should view this as an opportunity to refine their data strategies, not as a chance to delay them. Those that have already embraced cookie-less approaches report improvements in return on investment (ROI) by more than 50 per cent, underscoring the value of privacy-first, data-driven practices.

Now is the time for advertisers to audit existing data assets, build a solid test-and-learn framework, and collaborate closely with partners to ensure readiness for a cookie-less future. By prioritising data transparency and flexibility, brands can forge a sustainable approach that aligns with evolving regulations and consumer expectations.

The takeaway: preparing for a cookie-less world is not just about resilience; it’s about building a data strategy that empowers brands to thrive, even as the digital landscape changes.

By Abdelnabi Alaeddine, Regional Director – Digital & Partnerships, UM MENAT.