Why cookie deprecation is deflating performance and inflating costs

Cookie deprecation is a hot topic in the advertising industry and it's causing quite the stir. You see, cookies are like the little spies of the internet. They sneakily track our every move, allowing advertisers to target specific audiences and track the performance of their campaigns. But, with the increasing focus on privacy and data protection, many browsers and devices are now blocking or limiting the use of cookies. It's like kicking out the spies and leaving advertisers in the dark. 

The deprecation of cookies will have a significant impact on the performance of online advertising. It will make it harder for advertisers to understand their customers' behavior and preferences, making it harder to deliver relevant and personalized ads. If you’re trying to plan a surprise party for someone, but you don't know their favorite color, or if they're allergic to gluten, how do you make decisions? You're basically throwing spaghetti at a wall and hoping something sticks. 

In addition to impacting performance, cookie deprecation will also inflate costs for advertisers. Without cookies, advertisers will have to rely on alternative methods for targeting and tracking, such as device fingerprinting and IP address tracking. These methods are not as accurate as cookies and will require more resources and investment to implement and maintain.  

One solution to this problem is the use of first-party data. This is data that is collected directly from a website's users through forms, surveys, and other interactions. First-party data can provide advertisers with valuable insights into their customers' behavior and preferences, allowing them to deliver more relevant and personalized ads. It's like having a crystal ball, but instead of seeing the future, you see what people like to buy. 

 Another solution is the use of browser-based solutions such as browser storage and browser-based identity management. These solutions allow advertisers to collect and use data without relying on third-party cookies. However, these solutions are still in their early stages and may not be fully supported by all browsers and devices. 

The deprecation of cookies is a significant challenge for the advertising industry. It will impact the performance of online advertising and inflate costs for advertisers. Advertisers will need to explore alternative methods for targeting and tracking, such as first-party data and browser-based solutions, to mitigate the impact of cookie deprecation. However, they will also need to be transparent and compliant with all relevant regulations to ensure the privacy and data protection of their customers.