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How Contextual Data Strategies are Replacing the Third-Party Cookie

Despite the delay in Google phasing out the third-party cookie as a multiple data collection point until next year, the rollout is going ahead, and nothing can stop it. Stakeholders in online advertising have leveraged third-party cookies for user-level targeting for many years. But this is set to change once Google’s privacy update is incorporated into Chrome browser features in 2023. 

Third-party cookies have already been blocked in Firefox and Safari of course, but with Chrome confirmed to have a global market share of 67% with desktop users, the impact of the decision is a total game-changer. 

And once the roll-out happens, there’s no going back. Google says it wants a ‘privacy-first web’ and asserts that third-party cookies should not be “replaced with alternative forms of individual tracking.” 

So, there’s no doubt that 2022 is a pivotal year for brands, publishers, and advertisers, as they navigate and implement new strategies for targeting ads and tracking consumers in their target market.

How Contextual Targeting is Coming to the Rescue for Brands

Contextual targeting isn't new, but Google's stance on third-party cookies has created a new opportunity for it to flourish. This is excellent news for brands as it means the advertising model pivots to utilize website session data to determine a user’s intentions and interests. 

With less reliance on personal data, targeted advertising based on context not only aligns perfectly with privacy regulations, it also has a higher chance of generating a favorable response from consumers. 

How? Because ads are placed by understanding the searcher’s intent. Serving display advertising to a user directly relating to the content on the website or page they are visiting takes into account that the audience is already interested in the subject. Given the interest, there is a much greater chance of generating higher click-through rates and conversions.

The Advantages of Contextual Targeting 

The industry shift to first-party data has many advantages to offer brands. Contextual advertising can not only help identify your target audience's legitimate preferences, it does so by mitigating public data privacy concerns.

That's potentially a huge win-win.

By more accurately targeting customers, contextual advertising is a very effective way for brands to connect with their customers. This type of advertising also leads to increased ad recall, without harvesting personal information.

And because contextual ads are intentionally designed towards users who are interested in a particular topic, users find them less distracting than traditional ads, like banners.

The world of online advertising is going through a major change, with a new emphasis on reaching the right target audience at the right time and in the right environment.

At Precise TV, we leverage the power of AI to predict who is actually behind the screen. all without behavioral data from a third-party cookie. We analyze the context and content of a web page, to ensure contextual ads resonate with consumers.

By doing so, we can ensure that ads are placed with better reach while adhering to the principles of brand safety.

Interested in learning more about Contextual data? Download our latest report: Next Generation Video Marketing here. 

Topics: youtube, Google, privacy, advertising, contextual targeting, brand suitability, tiktok, CTV