March 24, 2020

That’s the Way the Cookie Crumbles: Advertisers Mourn Imminent Loss of Third-Party Cookies, While Creatives Envisage Brighter Future

The 6.4bn* UK digital advertising industry is facing a seismic shift. As Google prepares to end third-party cookies by 2022, research into senior marketers’ opinions of the move revealed some starkly contrasting results. A study conducted for Mymyne showed that, while over a third (39 per cent) of those in creative roles felt the impact on digital marketing will be “highly positive”, only 13 per cent of those in advertising felt this way. Conversely, a quarter (25 per cent) of those in senior advertising jobs felt the move would have a “highly negative” impact on digital advertising, compared to zero per cent from creative roles.

When asked about the impact Google’s decision to end third-party cookies might have on their business, almost a third (31 per cent) of those in creative jobs felt it would be “highly positive”, while only 12 per cent in advertising roles felt this to be the case. Just seven per cent of those in creative roles felt the impact on their business would be “highly negative”, while a quarter (25 per cent) from advertising felt this was true.

Senior advertisers are also far keener to embrace Google’s Privacy Sandbox. Overall, nearly half (48 per cent) of those surveyed said they would sign up. Of those in advertising roles, this jumped to 81 per cent, while less than half (43 per cent) of creatives said they plan to play in the Sandbox.

Director and founder of Mymyne, John Regan, said, “These results demonstrate that, while advertisers who rely on third-party cookies are keen to find an alternative data source in the Sandbox, those in senior creative roles are more focused on ways to engage audiences in a meaningful way. This approach means they won’t need cookie data to fuel their marketing campaigns, because they can develop direct relationships that foster strong brand advocacy and loyalty.”

When considering alternatives to Google’s Privacy Sandbox, server-side cookie-based networks were the top choice for almost half (43 per cent) of advertising executives. This suggests advertisers are seeking ways to continue the status quo, by simply using alternative data sources. This is despite evidence suggesting consumers now feel irritated by the way brands use their data without permission, often resulting in unwelcome and intrusive spam. In 2019 Edelman reported that only 34 per cent of audiences trust brands and 55 per cent are concerned about data and IT.

First-party data was the second favourite alternative option for one in five advertisers (19 per cent) and contextual advertising was third (12 per cent). However, almost a third of senior creatives favoured first-party data (31 per cent), most likely because this enables them to build a relationship directly with their target audience.

Second choice for around one in five creatives was contextual advertising (19 per cent) and thirdly device fingerprinting (13 per cent). Only 13 per cent of creatives said private cookie networks would be their favourite alternative tool, in contrast to the advertising executives who still seem keen to cling to their cookies.

When it came to third-party data for advertising audience selection, creative marketers proved far less reliant on it than advertising executives. Only 13 per cent of creatives said they are “highly reliant” on third-party data, while almost a third (31 per cent) of senior advertisers say they were “highly reliant” on it. This reliance from advertisers may suggest they are seeking work-arounds to obtaining data, while creative marketers are less concerned about lack of data, and more focused on seeking ways to engage directly with their audience. The benefits of this approach are two-fold – a first-party data source, removing reliance on third-party cookies, plus an opportunity to build stronger, more emotive brand engagement. The challenge, though, is scale. Few brands will be able to generate enough first-party data to continue to run scaled digital campaigns outside of the walled gardens.

Creative marketers also felt more confident than advertisers in their understanding of exactly how their organisation used third-party data. While a quarter (25 per cent) of creative marketers felt they had a “strong” understanding of third-party data use, only seven per cent of advertising executives felt this confident, although nearly two-thirds (69 per cent) felt their understanding was “reasonable” compared to just one-in-five (19 per cent) creatives.

As first-party databases look set to become essential, 12 per cent of senior creatives and 19 per cent of advertisers admitted they do not currently have a first-party marketing database. This suggests there is much work to be done before Google turns off its third-party cookies if marketers are to target audiences effectively in the long term.

John Regan concludes, “This survey demonstrates a significant contrast in attitudes and suggests a lack of collaboration between advertisers and creatives when planning and implementing campaigns. Zero per cent of creatives feel the end of cookies will have a highly negative impact on digital advertising, and from an audience perspective perhaps they’re right. From the point of view of running targeted digital campaigns at scale, however, lack of access to cookies will be challenging for many brands.”

“The fact that the server-side cookie-based networks are the most popular alternative amongst advertisers is a major concern. It ignores the problems of disengagement and data misuse that got us here in the first place and smacks of repeating the mistakes of the past with a different technology.”

*£6.4bn size of UK digital advertising industry 2018.