The vast majority (68%) of UK marketers believe the future of advertising in a cookieless ecosystem relies on multiple interoperable ID solutions. That’s according to the latest study – Beyond the Cookie: The Future of Advertising for Marketers and Publishers – from customer insights company, Lotame.
Conducted in January 2021, Lotame surveyed more than 200 UK senior digital marketing and publishing decision-makers to determine how organisations are planning for the phase-out of third-party cookies and whether brands are making the most out of their data.
The report findings also indicate a strong interest in identity graphs solutions. Despite relatively modest current adoption rates — averaging at 19% across both marketers and publishers — over half (51%) are actively searching for an identity partner. Moreover, those looking for a partner hope to find the right fit soon; with almost a third (28%) aiming to find one within the next six months and almost a quarter (23%) planning to use an identity solution in the next year. Among the challenges to implementing is budget; named by 16% as a barrier to adoption.
Additionally, the report identified that, for both marketers and publishers, a “context alone” strategy is not enough:
Three-quarters (75%) of marketers surveyed believe that while contextual targeting is a useful tactic to ensure advertising relevance without relying on third-party cookies, it alone cannot replace audience targeting – including one in eight (12%) having zero confidence.
Similarly, although two-thirds (66%) of publishers are confident that contextual targeting can offer an effective cookie alternative, almost half (49%) are looking for a further solution to cover the potential loss of third-party tracking – with 15% using more contextual and intent data while they search for a longer-term solution.
Despite the lean towards contextual targeting, an overwhelming 95% of publishers reported using supplemental data to enrich their first-party data assets. At present, publishers are tapping into a variety of information to accomplish this, including; survey and panel data (49%), marketer data (41%), third-party data from reputable vendors (24%), and second-party data from other publishers (20%). Additionally, almost a quarter (24%) say they are looking for help in finding quality data partners to augment their first-party data offering.
As the deadline to retire third-party cookies edges closer, marketers and publishers need to collaborate to enable advertising that is relevant, responsible, and resilient. These findings also challenge the narrative that third-party data enrichment is dead and indicate second-party and third-party data still hold considerable clout, especially as first-party alone does not scale or capture the complete story of ever-changing consumer habits.
Chris Hogg, Managing Director EMEA at Lotame