Cookieless advertising: strategies and solutions

With the development of new privacy regulations, cookieless advertising is becoming more relevant. Advertisers are forced to look for alternatives to third-party cookies for targeting, attribution, and retargeting. This article looks at cookieless marketing strategy as a solution for adapting to change.

Cookieless advertising is a digital method that does not use traditional third-party cookies to collect user data. It is becoming increasingly popular in response to stricter privacy policies (GDPR, CCPA) and restrictions on cookies in browsers (e.g., Safari, Firefox, Chrome).

Cookieless advertising is based on alternative technologies such as:

• First-party data is information a company collects directly from its customers through websites, mobile applications, or CRM.
• Contextual targeting is the process of analyzing the content of a page that a user views to display relevant ads.
• User IDs (Unified IDs, email hashes) are unique identifiers that allow you to identify a user without using a cookie.
• AI and machine learning - to predict user behavior based on historical data.

To navigate a world with advertising without cookies, brands need effective cookieless marketing strategies. Here are some of the best practices:

Due to the discontinuation of third-party cookies, companies should create and optimize zero- and first-party data collection processes.

Zero-party data is the information that customers voluntarily provide when interacting with a company. It includes date of birth, gender, product preferences, shopping intentions, and product or service reviews. Such data can be obtained through loyalty programs, customer surveys, and other methods of collecting information. Since this data comes directly from the user, it is highly accurate and valuable.

First-party data is information that the company collects indirectly during client interactions (also offline via offline stores, phone calls, chats, etc.). It includes purchase history, email interactions, loyalty status, support calls, and the brand's website or mobile app activity.

Zero- and first-party data provide companies with deep analytical insights, but they are often stored in different systems — CRM, marketing platforms, sales, and customer support departments. Combining this data into a complex source allows businesses to create a complete client profile, including his preferences, behavior, and history of interactions.

Contextual advertising works by placing ads on websites based on the content of the page. Instead of tracking user actions on the network, advertising is displayed based on thematic correspondence. For example, an ad for running shoes will appear on a fitness blog without the need to collect personal data.

Although the concept of contextual advertising seems simple, its effectiveness depends on an accurate analysis of the page's content. Before the ad is displayed, the system evaluates the text, metadata, images, and video content to determine if the advertising message matches the page's intentions and content. This approach allows advertisers to reach their target audience in a relevant environment, ensuring ads are naturally integrated into content without third-party cookies or personal information.

Spotify advertising is a strong example of contextual targeting in action: ads are matched to listeners' moods, playlists, and content without relying on cookies.

Businesses can improve data accuracy while complying with privacy laws by using a cookieless tracking solution such as Google Tag Manager (GTM) or server-side tracking. You can also set up cookieless tracking in Google Analytics to further reduce reliance on cookies and maintain accurate conversion data.

For example, a user opens a website in Safari and clicks on the affiliate link. They land on the advertiser's website, which does not use server-side tracking. In this case, a cookie differentiating a particular affiliate will live only one day (in most cases). According to the affiliate program rules, the affiliate can earn a commission if a purchase occurs within 30 days after the click.

In the scenario with Safari and client-side tracking, the affiliate won't be able to get a commission since the cookie will be erased from the website within one day. That is why the most extensive affiliate networks made server-side tagging mandatory for their advertisers. Stape has blog posts and server GTM tags for Awin server-side, Rakuten, Outbrain, Taboola, and other affiliate platforms.

Second-party data is obtained from reliable partners who have already collected first-party information from their audience. For example, an online retailer can work with a bank to segment the audience more accurately based on shared data. The use of such sources helps advertisers to expand their capabilities without the need for third-party cookies.

One option to replace traditional tracking is to exchange audience data between partners through secure platforms such as Data Clean Rooms or CDP (Customer Data Platforms). This method allows different companies to collaborate using encrypted and anonymized user data to improve targeting and personalization of advertising.

Google Topics API is a solution that labels a participating website with a topic from a pre-defined list. The Topic API assigns users a new topic weekly based on browsing history. Participating sites can choose three topics to show targeted ads to the user. All the topic data is stored on the user's browser for better user data security and privacy. Users can review and delete their data if they wish.

Retargeting is definitely more challenging in a cookieless world, but that doesn’t mean it’s impossible. With the right tools and data, you can reach the audience segments you want with ads tailored to their needs best. Simply put, retargeting reminds website visitors about the brand, encouraging them to return and make a purchase.

With the phasing out of third-party cookies, companies are looking for effective alternatives to preserve ad personalization and analytics without compromising user privacy.

Among the main advantages of cookieless ads:

1. Improve user privacy. The approach to data collection and processing is changing, reducing the risks of personal information leakage and increasing trust in brands.

2. Less dependence on third parties. Traditionally, advertisers relied on large advertising networks that collected and transmitted user data through third-party cookies.

3. Reduce ad-blocking risks. As browsers (Safari, Firefox, Chrome) consistently limit third-party cookies, traditional advertising methods become less effective.

4. Cookieless attribution provides more accurate attribution. Evaluating the effectiveness of advertising campaigns requires accurate conversion tracking.

With the development of technology and growing concerns about privacy, the advertising industry is on the verge of important changes. Google's active rejection of third-party cookies is one key factor changing the landscape of digital advertising. At the same time, these changes bring both challenges and new opportunities for marketers who are forced to adapt their strategies to new conditions.

1. The restriction of personalization

Previously, advertisers actively used third-party cookies to collect data on user behavior on various websites. This allowed advertisers to create personalized advertising campaigns and target specific users. However, after rejecting these files, advertisers will lose the ability to monitor user behavior in detail, which can reduce the effectiveness of advertising campaigns, especially for those brands that depend on this personalization.

2. Increasing the value of first-party data

First-party data is collected directly from users through their channels (sites, mobile applications, subscriptions, etc.). With the rejection of third-party cookies, this data becomes fundamental to the analysis and understanding of audience behavior. Businesses already actively working with first-party data will be able to more easily adapt their strategies and provide personalization without violating user privacy.

3. Alternative targeting methods

Advertisers are looking for new targeting methods to compensate for the loss of third-party cookie data. One such alternative is contextual advertising, where ads are displayed based on the web page's content, not on users' personal data. In addition, artificial intelligence and machine learning can use first-party data to create more accurate behaviors, allowing you to maintain advertising campaigns' effectiveness without compromising privacy.

Marketers must change their data collection and use strategies to successfully adapt to a future without cookies.

1. Evaluation of current strategies

The transition to new methods of data collection requires a reassessment of advertisers' current strategies. Brands need to determine how they currently use third-party cookies and what will need to change in their strategy. They should also pay attention to the importance of moving to more transparent and confidential methods of data collection.

2. Investment in first-party technology

As first-party data becomes the primary source for targeting and personalization, it is important to invest in expanding the ability to collect and analyze this data. This may include integrating CRM systems, mobile applications, and other channels of interaction with users, allowing you to create more accurate audience profiles.

3. Involve users in the data collection process

In the new reality, advertisers need to more transparently inform users about the collection and use of their data. It is important to get explicit consent from users and give them more control over how their data is used. This strategy will increase user confidence and help meet the requirements of data privacy legislation such as GDPR.

Solutions for customization without cookies

There are several technological solutions and strategies to help marketers adapt to change:

• Application of APIs for data collection. APIs such as the Google Topics API allow audience segmentation based on interests determined by user behavior on websites without using cookies.
• Using server tracking. Technologies like Facebook CAPI and TikTok Events API allow you to collect data on user interactions on the server, enabling you to maintain tracking accuracy without using third-party cookies.
• Go to contextual targeting. Ads displayed based on the website's context are a great alternative to targeting based on personal data.

Before choosing a solution without cookies, several aspects must be evaluated carefully.

1. 1.
   Verify that the selected solution meets the requirements of data protection legislation, such as GDPR.
2. 2.
   Determine what data is needed to target the audience effectively.
3. 3.
   Assess whether the chosen solution can provide this data.
4. 4.
   Check the possibility of integrating the solution with existing systems, such as CRM or analytical platforms.
5. 5.
   Finally, it is crucial to test the chosen solution through pilot projects.

For example, the key point for social media without cookies is setting up all applicable CAPI types. We recommend the following solutions:

1. 1.
   Implement server-side tagging for social media platforms. Most popular social media platforms already support server-side tagging and stape-created tags for them (Facebook CAPI, TikTok Events API, Snapchat CAPI, Linkedin CAPI). The critical element when configuring server-side tracking for social media is sharing user data since, for now, this is the key way social media networks can attribute users who saw your ad to the one that converted on your website.
2. 2.
   Use offline-first party data. Since, for some businesses, a significant part of conversion happens offline, for example, in offline stores, through phone calls, or orders through chat, sharing first-party data can positively affect campaign results. It occurs because brand managers will be able to count not only online conversions but also offline ones), targeting (social media networks will better understand the interests and behaviors of your target audience), and remarketing.
3. 3.
   Build a custom Customer Data Platform (CDP). For most of us, CDP is associated with something very complicated and expensive. However, with the Google Tag Manager and Stape Store, you can build a custom CDP without paying an additional price. Configuring custom CDP using sGTM requires some technical knowledge, but it's definitely doable for those already familiar with sGTM.

The transition to first-party data involves collecting and analyzing information received directly from users through their own platforms, such as websites and mobile applications.

Contextual advertising is an important element in a cookie-free strategy. It involves placing ads that match the content of the website on which they are displayed instead of using behavioral data. 

Alternative targeting methods, such as universal identifiers or other technologies independent of third-party cookies, can also be useful. 

To ensure process transparency, it is important to improve user interaction, giving them the opportunity to control their data. 

Cookieless marketing refers to digital advertising strategies that do not rely on traditional third-party cookies to track and target users. As privacy regulations and user concerns about data collection grow, marketing without cookies has become a significant focus for businesses looking to maintain compliance and ensure privacy. This approach includes cookie-free advertising solutions, including first-party data, contextual targeting, and alternative tracking methods.

Cookieless advertising solutions allow marketers to deliver relevant ads without relying on user behavior tracked via cookies. For example, cookieless tracking solutions enable marketers to track conversions and attribute sales without third-party cookies, such as with Google Ads conversion tracking without cookies. Additionally, cookieless attribution models offer a more privacy-conscious approach to measuring ad effectiveness. Programmatic advertising without cookies focuses on targeting users through other data sources, like contextual data or universal identifiers, ensuring that advertisers can still reach the right audience while respecting privacy regulations.

In summary, cookieless marketing strategies use alternative tracking methods and targeting approaches, allowing advertisers to advertise without cookies while maintaining effectiveness in a privacy-first digital landscape.