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Cookieless Advertising - Latest 19 Key Insights for Agencies

Updated: Dec 4, 2023

Cookieless Advertising
Photo by Michael Burrows [Pexels]

Cookieless Advertising:

To highlight how agencies are approaching data-informed personalization and how their strategies will change even further with the full deprecation of the cookie slated for 2023, Digiday and Resonate surveyed 110 agency representatives. Here are the key insights from the said industry report.

19 Key Insights and Facts from ‘The State of Post-Cookie Personalization for Agencies’ Report by DIGIDAY and resonate:

1. According to our survey respondents, about half (48%) say that their agency’s data infrastructure is currently very important to their brands.

2. 65% of our respondents said their agency’s data infrastructure will become even more important to brands post-cookie deprecation.

3. Agencies are already allocating large shares of their budgets toward tools and solutions for data collection and management, and they plan to continue to do so in 2023.

4. According to Delphine Hernoux, chief data analytics officer, North America at Wavemaker, a Resonate client, part of the agency’s role is also to reassure clients that any extra spending to prepare for future challenges is worth it.

5. Our survey suggests that agencies are not indicating a strong command of the post-cookie scenario at present.

6. Among those with internal or hybrid data management models, 24% still leverage third-party cookies to deliver personalization, and among those who rely on a partner, the portion is slightly higher, at 29%.

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7. According to our survey, less than half (44%) say that their current data infrastructure and personalization strategy is ready to continue without third-party cookies.

8. Only 18% of respondents say they’ve implemented alternative data collection solution.

9. 47% say they’re very prepared to implement alternative solutions, that still leaves over a third (34%) who are only somewhat or not at all prepared to do so, meaning that there is still a lot of work remaining when it comes post-cookie preparedness.

10. The most common steps that our respondents have planned include making acquisitions of companies (31%) and partnering with third-party vendors (29%) that provide cookieless personalization solutions.

11. The recency of data, or how often it’s collected and updated, is one of the main challenges our respondents face in building audiences, with 42% of those with internal or hybrid data management saying so, and 32% of those with only partner data management saying the same.

12. According to Resonate’s Ricard, a main challenge for smaller, independent agencies is relying on audience data that originates from Google Analytics supplied by their DSP or other partners.

13. The activation aspect can be an especially critical challenge for larger agencies that have huge pools of data in multiple complex systems.

14. “Given the turnover at agencies and the turnover overall in the job market, the idea that agencies can have complex systems is harder to see a future state for,” explained Ricard. “They need to figure out how to simplify their team’s access to information for their clients.”

15. “Agencies need to build an understanding with their clients about how first-party data is essential to manage an effective marketing campaign in any channel,” explained Ricard. Otherwise, the agency is going to struggle to bring addressability, targeting, and measurement to the campaigns they’re running.”

16. Post-cookie, data-driven personalization will clearly require a great deal of rethinking, planning, and strategic experimentation on the part of agencies.

17. As Ricard explained, “In order to lead the client to outcomes like segmentation, targeting and measurement, they need to ensure they have the right access to data, the ability to use that data in near real-time and to be able to collaborate across their teams. Few agencies have the tools to accomplish all of this in-house today.”

18. While our respondents are nearly evenly split about whether they believe 2023 will be a year of challenge or of opportunity, slightly more foresee more of the former than the latter (51% versus 45%)

19. From rethinking what personalization really means in a cookieless world, to taking stock of the data they have access to in order to deliver on this refreshed mandate, agencies need to take action now if they hope to continue to meet the expectations of clients and ultimately consumers.

By the way, if you are interested to know more insights, you may access the complete report here.

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