It’s often said that at some point in history, trends cycle back and what's old becomes new again. In today's cultural landscape, we're witnessing a resurgence of nostalgia, from the revival of old-school video gaming with Atari to the popularity of period dramas like "Bridgerton" and "The Gilded Age." This embrace of the past extends into the advertising industry, particularly as we confront the shift in digital media caused by the depreciation of third-party cookies. Each agency and brand will need to determine the right approach for their campaigns, but it's also an opportunity to embrace some of the tried-and-true media planning and buying principles that some seem to have overlooked, like first-party data and contextual targeting. Are we experiencing a digital media renaissance?
Planning for the Future by Looking Back
The time for the doom and gloom of the death of the cookie is over, and frankly, unnecessary. Beyond the plethora of cookieless solutions available, there was once a time when marketers targeted users without the use of cookies. And, for the marketers targeting Firefox and Safari users, they haven’t been using cookies for the past few years.
As Google continues towards deprecating cookies, agencies and brands should be in the middle of adapting their strategies by now. Much attention is focused on how to mitigate signal loss and uphold campaign performance fidelity. While there are numerous options available, recent feedback suggests a lean towards leveraging first-party data or contextual targeting. US advertisers say 28% of their targeting budget is put toward contextual data, while 27% is for first-party data, per a January 2024 report by Proximic.
Clients' success stories with these strategies vary, with progress on first-party data being described as diverse across different brands. Some brands have been proactive, leveraging sophisticated tools to manage their data, while others are catching up, realizing the importance of this preparation in the face of impending changes.
Questions linger about the timing of Google's actions, with concerns about potential disruptions, especially during critical periods like back to school, the holiday season or the current election cycle. However, the consensus is that the timeline is beyond their control, and preparations must continue regardless. There’s plenty that can be done in lieu of cookies.
Contextual Relevance and Beyond the Basics
Over the years, we’ve lost sight of some of the foundational components of great media planning. This results in an overreliance on third-party data and the ability of cookies to more easily obtain the consumer data marketers so desperately want to keep, resulting in a lack of human touch.
Reflecting on this overreliance, there's a movement towards reevaluating contextual targeting and redefining native advertising. The focus is shifting back to the importance of delivering the right message at the right time and place, across various channels like audio and connected TV (CTV).
We all know the adage, right place, right time, right message. During the early days of digital, contextual relevance was a primary means for reaching desired audiences. Contextual targeting supported the emergence of native advertising and was often likened to print advertorials in the early days of native.
Contextual targeting is becoming popular again, thanks to AI advancements enabling deeper analysis of video and content consumption signals. In 2023, contextual advertising spending was estimated at $227.38 billion U.S. dollars on the global level and is expected to more than double by 2030, when it was forecast to amount to $562.1 billion dollars.
Although not new, it was overshadowed by the promises of "reach and scale" through cookie-based targeting.
The landscape is again shifting. Real-time insights enable brands to target specific interests instead of broad stereotypes, seizing audience attention when it matters most to maximize campaign impact. Contextual targeting offers a more transparent, effective, and unbiased method of reaching new customers.
Contextual and native are critical elements to master with the removal of cookies. But what does that look like in 2024? The same contextual targeting that worked 20 years ago won’t be applicable today. Consumers move between platforms and devices that weren’t around before. There are new touchpoints along the journey to consider.
Creative + Media
Brands that depended on third-party cookies frequently utilized advertising tactics characterized by extreme precision but that could also be unpredictable. Although this might appear contradictory, advertisers frequently delivered identical content to particular consumer groups, pinpointed and categorized via third-party cookies. This has made more consumers not care about ads and in some cases dislike them, leading to less attention and engagement with ads.
However, consumers don't really mind if brands talk to them, as long as it's a meaningful conversation. If brands get creative again, they can make a meaningful difference in how they connect with consumers.
In a cookieless environment, the close integration of media and creative strategies is gaining importance. When creative strategies are well-coordinated with media placements, they can greatly enhance audience engagement and attention. This synergy ultimately results in more impactful advertising, potentially improving the dynamic between advertisers and consumers.
More Measurement
Agencies and brands must collaborate closely to explore alternative measurement strategies. There's a growing interest in media mix modeling, which is a statistical method used to measure the impact of marketing and advertising campaigns, and similar solutions to navigate attribution challenges. Modeled data stands out as a viable alternative in this evolving landscape. Companies specializing in this area, along with platforms like Meta with AI powered open source code, Robyn, are gaining attention for their offerings.
Furthermore, attention metrics will garner increased, well, attention as the industry seeks solutions to navigate measurement challenges in a post-cookie environment.Though the technology is still in development, these metrics can give brands insight into a campaign’s success based on audience engagement. They can look at how well content is performing and how much time consumers spend looking at the content. This understanding can be used to anticipate future success and make decisions about things like design or layout adjustments to enhance user experience and potentially boost conversions or sales.
Where Do We Go From Here, and Who Wins in the Long Run?
The ad tech industry is experiencing a renaissance, reminiscent of the cyclical nature of trends where what's old becomes new again. This revival is evident in the return to foundational principles of media planning, particularly as the landscape shifts due to the depreciation of third-party cookies. Agencies and brands are reevaluating strategies, with a renewed focus on first-party data, contextual targeting, and advertising.
Looking ahead, the resurgence of contextual targeting, coupled with advancements in AI, is set to redefine digital marketing practices. Real-time insights enable brands to tailor content to specific interests and capture audience attention effectively, paving the way for a more transparent, effective, and unbiased approach to reaching customers. As the industry continues to evolve, collaboration between agencies and brands will be key to embracing innovative solutions and navigating the ever-changing digital landscape.
This renaissance in digital advertising is poised to have long-term implications. I hope it will lead to hyper-personalized advertising, messaging, and offers, resulting in more meaningful interactions with consumers.
The tighter alignment of media and creative strategies is becoming increasingly crucial in the absence of cookies. Creative strategies, when synced effectively with media, can significantly amplify audience engagement and attention, ultimately leading to more effective advertising and potential altering the relationship between advertisers and consumers for the better.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.