Rob Armstrong, SVP of Product at Eyeota, returns to the data basement for Round 2 of our three-part series on the cookieless future of data driven marketing. This week we dig deep into the hot mess surrounding cookies.
A few key points:
We review the definition of a cookie and the difference between 1st (stored by website you visit) and 3rd party cookies (created by other domains than the one you're visiting).
Most people are okay with 1st party cookies because they want a tailored experience on a websites they visit. However, third-party cookies are used for retargeting and advertising, which many people find sketch.
When you visit bananarepublic.com and the cashmere sweater you looked at yesterday is displayed, that's a 1st party cookie. When you sign into Facebook later and you see ads for cashmere sweaters, that's the creepy 3rd party cookie.
Cookies make browsing the internet easier and faster. They are used to tailor your browsing experience based on previous visits and activity.
Cookies are anonymous IDs. There is no readable name, phone number or email attached to cookie that is sold to others. Personal Identifying Information (PII) within a data record are replaced by one or more artificial identifiers, or pseudonyms.
A data record may read like this: "male, auto trader, engineer, 36-45 years old, married, lives in NY, home owner"
We talk about why there are so many cookies and why is it such a complex mish-mash?
Cookies are unstable. They randomly reset. Each of your devices has different cookies. There's no understanding of when they expire.
What does opting out of cookies do? It sets a new cookie. You have to store info about a person who wants to opt out to make sure you opt them out.
People were fine with cookies until retargeting by retailers started. Five or six years ago we started hearing our friends saying, "OMG! I was researching the best pan to use for eggs and now I am getting ads for omelet pans!"
We touch on the difference between running tv ads and ads on the internet.
We need to improve the system. If an expectant mom still receives ads about babies after a miscarriage and she can't turn those ads off, that's a problem.
We need a system that encourages transparency, an easy way to shut off ads and make people feel safe. The internet should be super valuable community.
Cookies are likely to go away even though we got the delay.
Walled gardens (Facebook, Apple, etc.) are dumping lobbyist money into solutions that are blind power grabs. The cookie awareness is driven by corporate entities (i.e., clever ads by Apple about the Pixel Party) that have a vested interested in you thinking cookies are unacceptable. Apple's M.O. is to hurt Google. This is NOT good for the local web.
Ultimately consumers will decide. Consumers are somewhat lazy. We don't like to type in our address each time. We like to know what people around us are searching. We like to know what we were shopping for yesterday. Simplicity will win.
Next episode - What is on the horizon? What are some possible solutions?