The end of cookies?: Google’s decision that can put an entire industry in check!
The end of cookies?: Google’s decision that can put an entire industry in check! Recently, Google announced that from 2022 cookies would stop working on sites. How will this impact ad agencies?
The growing demand for user privacy and the possibility of putting aside an outdated tool have prompted Google’s main browser to join the list of those that will not allow tracking and storing personal data. Likewise, it is about equating Chrome with competitors such as Firefox or Safari, who already work with this third-party cookie restriction. The measure will enable Internet users not to share their information and online activity.
The end of cookies? Today, companies are increasingly pushing to create profiles of their consumers, know their preferences, and be able to adapt their strategies in real-time. There, online advertising and other forms of Data Mining become relevant, such as the process of classifying large volumes of data, identifying patterns, and establishing relationships to solve problems through its analysis.
The cookies in this instance, are pieces of code that are housed in browsers people and “follow” on the web through its navigation. Their relationship lies in the fact that the cookie allows certain information to be saved, and this -correctly segmented via data mining- allows companies to make decisions.
For Silvio Pestrin Farina, founder and CEO of The Cyprinus, this modification will change the advertising sector in the bud. “ It will be a strong earthquake in the industry, as cookies are a key tool used by advertisers to track potential customers as they browse the internet. The fact that Chrome (the world’s most used browser with a market share of 64%) is eliminating them, it will mean for digital agencies the search for new channels to attract customers “.
According to the Interactive Advertising Bureau -IAB-, it is estimated that the advertising practice of segmentation through targeted ads worldwide represents an investment of more than 300,000 million dollars. Now, Google is studying the substitution of cookies through an alternative system called FLoC (Federated Learning of Cohorts), based on the grouping of similar interests by users, without specifying a specific person.
The end of cookies? In this future context, “The Cyprinus will play an extremely relevant role, as we will continue to offer minute by minute shopping habits through complex algorithms and machine learning, without the need for the intervention of cookies”, says Pestrin Farina. “The difference lies in providing the opportunity for companies to access target clients. A digital agency can know if a person navigated certain sites looking for a tennis match, but in no way can it know if that person plays tennis once a week. A week and there our differential is installed “.
The elimination of third-party cookies in Chrome has no direct impact on the service provided by the company that recently landed in Latin America: “The use of a small piece of code, called SDK, allows us to obtain the ‘journey’ in an anonymized way of customers “, says the CEO. “This large volume of data is processed to obtain +175 behavioral attributes. For example, we can know if a person uses public transport on weekdays, but uses their car on weekends, or if they frequent fast-food chains it has the genetic service, among others. “
Another of the premises that most concerns users, companies, and governments after the Cambridge Analytica case is transparency in the handling of personal data. According to Pestrin Farina, this section is key and he shares that it is possible “to work in a totally anonymized way with the data obtained, complying with international GDPR and LOPD regulations on its protection and use, that is how we do it in our company.”
Regarding the behavior of users on sites after Google’s new provision, the executive infers that “in the short term we do not see that there is a behavioral change in users, they will continue browsing different sites of interest, regardless of this change in rules.”