The digital advertising world will not be the same by the next couple of years. In 2019, Safari and Firefox browsers deprecated 3rd-party cookies, leaving many advertisers wondering how they would address users with relevant advertising in the future. For the moment, the Cypriot digital advertising ecosystem should not worry, since only 10-15% of traffic comes from these browsers (compared to 25% in the rest of the world). Thus, it may not be a high priority to find an alternative form of ID management.
However, this should not be the case, as in early 2020, Google Chrome has announced that by 2022 it would deprecate 3rd-party cookies as well. In Cyprus, 65% of traffic comes from Google Chrome. If this percentage is added to the 15% of Firefox and Safari, almost 80% of the digital advertising traffic will be affected.
In response to all these changes, Adform, our technological partner, proactively undertook a period of intense research in collaboration with publishing groups with the aim of finding a way to maintain the high level of marketing personalization afforded by 3rd-party cookies. So far, Adform has already designed a 1st-party ID solution that could continue to bring transparent, personalized, measurable, and brand safe online advertising to the market. In June 2020, after a period of beta testing, the solution was launched with live campaigns and 1st-party ID management along with its many benefits became a reality.
1st-Party IDs are the only way forward
It is not strange that Adform is a first mover in this area. The whole digital advertising ecosystem is quite complex and requires many different components to work together in order to create the optimal performance. Adform full-stack platform is comprised of an SSP (Pulishers’ Network), DSP (Programmatic Platform), Ad Server and DMP (Data Management Platform). All of them have had to be modified to encompass this paradigm change. To facilitate a fully operational value chain based purely on 1st-party IDs and to allow targeting of connected 1st-party data, Adform has made important adjustments across all its product areas:
DMP (Data Management Platform): The Adform DMP is now able to operate purely on 1st-party publisher IDs. In this way, it is possible to receive such data and make it available in the Adform DSP.
DSP (Programmatic Platform): The DSP has undergone major changes in order to become capable of:
1) Receiving 1st-party IDs in bid requests;
2) Bid purely based on 1st-party IDs or in combination with any 3rd-party IDs if present;
3) Continuing frequency capping or data targeting based on 1st-party IDs.
Ad Server: The Ad server can now report on 1st-party IDs.
SSP (Publishers’ Network): The Adform SSP can facilitate the whole process which has been described above by enabling the transmission of 1st-party publisher IDs in order to allow the ad server, reporting and measurement to function effortlessly.
Five Advantages of a 1st-Party World
While 3rd-party cookies have made it very easy to enable personalized marketing, they also have some disadvantages. Some of them are limited lifetimes, consumer and regulatory scrutiny, etc. Switching to 1st-party cookies is likely to bring further benefits such as:
It is unavoidable that digital advertising is moving extremely fast. At PS New Deal, we feel lucky to be Adform’s technological partner in the Cyprus market, because it has been a leader in adjusting to the new standards of the new marketing era. Adform’s full-stack platform (Ad-Serving, DSP, DMP, SSP) provides the means to move towards the new way of performing campaigns and more importantly to get adjusted to the 1st party IDs era, that encourages a more transparent and a more enhanced way of digital advertising ecosystem.
If you want to learn more about how your company can be adjusted to the new era of 1st party IDs and how it can help you become a top-tier performance agency, please feel free to contact Andreas Pavlides, the Head of Strategy at: [email protected] or 22 010018.