{"id":10919,"date":"2022-05-10T07:21:09","date_gmt":"2022-05-10T05:21:09","guid":{"rendered":"https:\/\/mio.one\/blog\/programmatic-advertising-in-a-cookie-free-world\/"},"modified":"2022-05-10T07:21:09","modified_gmt":"2022-05-10T05:21:09","slug":"programmatic-advertising-in-a-cookie-free-world","status":"publish","type":"post","link":"https:\/\/mio.one\/en\/blog\/programmatic-advertising-in-a-cookie-free-world\/","title":{"rendered":"Programmatic Advertising in a Cookie-Free World"},"content":{"rendered":"

These days, almost none of us remember what online advertising was like before cookies. However, for some time now\u2014and due to the announcement that these \u201ctracking cookies\u201d will soon be phased out\u2014the entire digital advertising industry has been shaken as if by a massive earthquake. One of the types of advertising most affected may be programmatic advertising; however, contrary to what you might initially imagine, its future could be very promising. Want to see how? Let\u2019s take a look. <\/em><\/strong><\/p>\n

But first, let\u2019s review what these famous cookies are<\/strong>. These are small pieces of code that are added to users\u2019 web browsers when they visit different websites. The information they contain provides a more personalized user experience, since they remember previous online actions, such as login information, location settings, what\u2019s in your shopping cart, and more.<\/p>\n

Advertisers use cookies to collect data, such as the websites a user has visited. This information will help you deliver the most relevant and targeted content to specific audiences.<\/strong> Digital advertising would also be included among that content.<\/p>\n

The fact is, cookies have been the technology that, since the early 1990s, has supported and financed the fictitious arrangement of obtaining \u201cfree\u201d content on the internet.<\/p>\n

As you know, nothing in life is free, and the Internet is no exception<\/strong>. In fact, a transaction takes place every time you consume free online content. Web publishers offer you their content; advertisers agree to fund that content by paying for ads. And the user agrees to hand over mountains of personal data to hundreds of companies in the digital advertising industry, whether they realize it or not. This is the \u201cfictitious contract\u201d I was talking about in the previous paragraph, and it\u2019s about to come to an end. <\/p>\n

The public has increasingly expressed its discomfort with the tracking it is subjected to through advertisements<\/strong>. Europe\u2019s landmark digital privacy laws have inspired similar legislation around the world, and the digital advertising industry has had to adapt to global demand for stricter privacy controls. <\/p>\n

The regulations established by the GDPR and CCPA, Apple\u2019s changes to the IDFA (Identifier for Advertisers), and Google\u2019s upcoming phase-out of third-party cookies are forcing advertisers to find new ways to reach consumers<\/strong>.<\/p>\n

Given this situation, brands that rely on programmatic advertising and have not been developing their first-party data<\/em><\/strong> or proprietary data will be the most affected by these changes.<\/p>\n

However, despite this, programmatic advertising is estimated to account for 86.5% of total advertising spending by 2022<\/strong>, according to data from eMarketer<\/a>.<\/p>\n

However, this type of advertising will not be exactly as we understand it today<\/strong>, and it will look a little different in the future. But before we delve into what this type of advertising will look like in the future, let\u2019s review what programmatic advertising is and why it\u2019s important<\/strong>. <\/p>\n

What is programmatic advertising, and why is it important?<\/h2>\n

Programmatic advertising could be defined as a fully automated<\/strong> method of online advertising based on data regarding the buying and selling of ad space<\/strong> on publishers\u2019 websites. Through complex algorithms and machine learning<\/strong>, brands would be able to display the right ad to the right customer on a website in real time. <\/p>\n

Programmatic advertising has transformed<\/strong> the way brands buy and sell ad space, replacing the traditional manual process that involved requests for proposals, negotiations, contracts, time, and financial resources, and enabling real-time measurement of the ROI of advertising campaigns.<\/p>\n

In summary, programmatic advertising is important primarily because:<\/p>\n

    \n
  1. The incredible scalability<\/strong> to a volume that direct buying could never have achieved. Programmatic advertising allows you to buy any inventory available on the Internet, as long as you have the budget. <\/li>\n
  2. Programmatic advertising allows you to make real-time changes<\/strong> based on the impressions the ad is receiving, thereby offering real-time flexibility.<\/li>\n
  3. It allows you to set segmentation and targeting<\/strong> criteria for your campaigns at a relatively low cost<\/strong>, so you can reach exactly the audience you want.<\/li>\n
  4. It is very efficient<\/strong>, as it allows you to get a much higher return on every euro invested than conventional online advertising.<\/li>\n<\/ol>\n

    However, you might be wondering, \u201cOkay, that\u2019s all well and good, but once cookies are phased out, what\u2019s going to happen?\u201d<\/strong> It\u2019s very simple: we\u2019ll need to test new alternatives<\/strong> between now and the end of 2023, which is when Google has announced it will make the switch. Let\u2019s take a look at some of them. <\/p>\n

    6 Alternatives and Strategies That Will Make Programmatic Advertising a Success.<\/h2>\n

    Between now and the end of 2023, there are a wide variety of options to explore. Brands are already taking advantage of effective alternatives to track and target consumers in a post-regulation world. The most significant ones are: <\/p>\n

    #1. Take a fresh approach to contextual guidance.<\/strong><\/p>\n

    Ads can be matched to a website’s content as advertisers’ primary targeting method.<\/p>\n

    Advances in artificial intelligence (AI)<\/strong> have made it possible to better understand the meaning of content on a website, while sophisticated algorithms<\/strong> display ads when users interact with a topic or keyword. Together, they ensure brand safety by placing ads in the right contexts without using personal or third-party data. <\/p>\n

    #2. Increase the use of private markets (PMPs).<\/strong><\/p>\n

    PMPs leverage the data collected by publishers, that is, first-party data<\/em><\/strong>. Advertisers can delve deeper into consumer demographics and interests to place their ads with maximum relevance and impact. Along with access to first-party data, PMPs provide greater transparency and control, giving advertisers the confidence that they are serving ads alongside brand-safe content. <\/p>\n

    #3. Restoring the importance of creativity.<\/strong><\/p>\n

    Until now, data provided sufficient assurance of a campaign\u2019s success, and there was no need to invest too much in creativity. However, now that quantity takes precedence over quality, we can explain why most digital ads are so annoying to us. With a renewed focus on the creative aspect of advertising, we\u2019ll see more brands investing in cross-channel storytelling that drives engagement, rather than product-focused display ads that follow consumers across the web. <\/p>\n

    #4. Improved targeting through experimentation and ad testing.<\/strong><\/p>\n

    A \/B testing<\/strong> can improve<\/strong> an ad’s effectiveness<\/strong> by at least 20%.<\/strong> We all know this, yet despite being one of the major advantages of digital advertising, these tests are not conducted as frequently as they should be.<\/p>\n

    Smart brands are shifting to an experimentation model<\/strong>, isolating a specific known audience within a platform or \u201cwalled garden,\u201d testing content and tactics, and then scaling up the successful ones across other \u201cwalled gardens.\u201d We can expect brands to incorporate more testing to improve targeting<\/strong> and reap the benefits of programmatic advertising. <\/p>\n

    #5. Switch to the internal program.<\/strong><\/p>\n

    Some brands are considering handling programmatic advertising in-house, using the first-party data they have been collecting; however, this is no easy task. A comprehensive solution requires a centralized data management platform (DMP)<\/strong>, change management, in-house expertise, and a connected AdTech<\/strong> platform<\/strong>. That is why the most appropriate option is a hybrid approach that combines technical guidance on all aspects of the company\u2019s data management with the expertise of an agency specializing in programmatic advertising. <\/p>\n

    #6. Continued growth of other programmatic formats.<\/strong><\/p>\n

    Of course, programmatic advertising isn’t limited to the Internet. We can expect advertisers to devote more resources to other formats as they move away from tactics that rely on third-party data. These may include: <\/p>\n

      \n
    • Mobile geolocation, thanks to GPS.<\/li>\n
    • Programmatic audio.<\/li>\n
    • Out-of-Home (OOH), through dynamic digital displays and targeting capabilities.<\/li>\n
    • Over-The-Top (OTT), which delivers ads through video streaming services and connected TVs (CTV).<\/li>\n<\/ul>\n

      Contrary to what some may think, the future of programmatic advertising remains bright<\/strong>, despite the elimination of cookies. Brands will continue to rely<\/strong> on this type of advertising to maintain their presence with their target audiences, and they<\/strong> will allocate a very significant portion of their advertising budget to do so. However, they will explore different formats that promote creativity, as well as new ways to reach those consumers while respecting their privacy. <\/p>\n

      It’s worth noting that ads are only as good\u2014or as bad\u2014as the data behind them<\/strong>.<\/p>\n

      That\u2019s why<\/strong> leading brands will seek out companies as programmatic partners that have the<\/strong> technology, data expertise, creativity, and programmatic experience to help them succeed in a field that will become more complex but promises great results. That\u2019s where MIO Group<\/strong> comes in as a partner\u2014 a leader in every discipline<\/strong> needed to achieve whatever programmatic goals a business sets for itself. Want to talk?<\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":"

      These days, almost none of us remember what online advertising was like before cookies; however, for some time now\u2014and due to the announcement that these \u201ctracking cookies\u201d will soon be phased out\u2014the entire digital advertising industry has been shaken as if by a massive earthquake…<\/p>\n","protected":false},"author":4,"featured_media":9035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[244],"tags":[341,394,396,395,397],"class_list":["post-10919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cookieless","tag-dms","tag-online-advertising","tag-programmatic","tag-programmatic-advertising"],"acf":[],"yoast_head":"\nProgrammatic Advertising in a Cookie-Free World - MIO One<\/title>\n<meta name=\"description\" content=\"Before long, digital marketing will be without cookies, and programmatic advertising may be one of the hardest hit\u2014or will it?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mio.one\/en\/blog\/programmatic-advertising-in-a-cookie-free-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Programmatic Advertising in a Cookie-Free World\" \/>\n<meta property=\"og:description\" content=\"Before long, digital marketing will be without cookies, and programmatic advertising may be one of the hardest-hit sectors\u2014or will it? 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