Cookieless Advertising: What Advertisers Need to Know (and Do) Now
As an advertiser, you’ve likely heard the buzz about third-party cookies, and it’s not the good kind.
Consumers want more control over their data. Regulations like GDPR and CCPA are getting stricter. Browsers such as Safari, Firefox, and even Chrome (with its 2024 policy shifts) are blocking cross-site tracking.
The outcome? The “cookie era” you’ve leaned on for retargeting, precise audience segmentation, and conversion tracking is fading away fast.
But cookie deprecation isn’t the end for your campaigns. It’s a chance to create a more effective and trusted advertising strategy. Let’s break down:
- What cookie deprecation actually costs advertisers
- 4 strategies for advertisers to succeed in a cookieless world
- How to make the transition simple (so you can focus on growth, not fixing problems)
Let’s get to the point and focus on what boosts your bottom line.
The New Cookie Reality for Advertisers
Third-party cookies are small files that track users across websites. For years, they’ve been key for:
- Retargeting users who left your cart
- Building very specific audiences (like “25–34-year-old runners looking for trail shoes”)
- Showing stakeholders ROI with conversion tracking
Now, things are changing:
- More than half of internet traffic is already “cookieless”, so third-party tracking doesn’t work for nearly half your audience.
- Chrome’s 2024 update, which delays full deprecation but lets more users opt out of tracking, will make “cookie-friendly” traffic even smaller as users take charge of their data.
- Safari and Firefox have blocked third-party cookies by default for years. That means a big chunk of global conversions can’t be tracked.
This isn’t a “future problem.” It’s affecting your campaigns right now, and the costs are real.
How Cookie Deprecation Hurts Your Campaigns
Industry data and advertiser examples show the impact clearly. Here’s what you’re likely dealing with:
1. Retargeting ROI Drops
Retargeting used to be your best-performing tactic—targeting users who already showed interest in your brand. But without cookies, you can’t track those users across sites. An e-commerce advertiser might see a substantial drop in retargeting conversion rates, say, 20% or more, after Chrome rolls out cookie controls. In such a scenario, the budget could end up being wasted on generic audiences instead of those warm leads who’ve already shown interest in the brand.
2. You’re Wasting a Lot of Ad Spend on Irrelevant Users
Third-party cookies helped you avoid “spray-and-pray” targeting. Without them, you’re stuck with broad demographics (like “25–34-year-olds in cities”). A lot of that ad spend goes to users who don’t care about your product.
3. You’re Missing a Chunk of Conversions (and Underreporting ROI)
Cookies only track “post-click” conversions (users who click and buy right away). They miss “post-view” conversions—users who see your ad and then buy later through search or direct visit. So you’re underreporting ROI and making underinformed decisions about which campaigns to expand.
4. CPM “Deals” Are a Trap
Publishers with cookieless inventory offer 35% lower CPMs. That sounds good, but these ads drive 50% fewer clicks. You spend less but get even less in return.
4 Strategies for Advertisers to Thrive Cookieless
The solution isn’t to “replace” cookies. It’s to build a strategy that’s more accurate, compliant, and focused on your audience’s needs. Here’s how top advertisers are adapting:
1. Double Down on First-Party Data (Your Most Valuable Asset)
First-party data is data you collect directly from users (like logins, sign-ups, purchases, surveys). For advertisers, it’s valuable because:
- It’s more accurate: There’s no third-party middleman, so you use data from users who actually interact with your brand.
- It’s compliant: Users share it explicitly, so you avoid regulatory fines (important for GDPR/CCPA).
- It’s intent-driven: A user who signs up for your “Running Tips” newsletter is a high-intent customer, no guessing needed.
How to Do It:
- Bring your data sources together: Combine CRM, website, and app data into one dashboard to create clear audience segments (like “Abandoned Cart (Trail Shoes)” or “Email Subscribers (Fitness)”).
- Create “value exchanges”: Offer incentives to get more data, like 10% off for account sign-ups, or a free “Trail Running Guide” for survey responses. One beauty advertiser used this to increase first-party data collection by 65% and saw a 28% boost in campaign ROI.
Pro Tip: Prioritize zero-party data (data users share willingly). Reports say it’s twice as good at predicting conversions as behavioral data, so you target users who already want your product.
2. Use Contextual Targeting to Reach “Moments, Not People”
Contextual targeting puts your ads based on the content users are consuming (like a running shoe ad on a “Best Trail Runs” article), not their past behavior. For advertisers, it’s a game-changer. It’s privacy-friendly, and 34% of advertisers now say it’s their top cookieless solution.
How to Do It:
- Go beyond keywords: Use AI to analyze content sentiment and context (like telling the difference between “budget running shoes” and “luxury running shoes”) to make sure your ad matches what the user is interested in right now.
- Partner with premium publishers: Focus on sites where your audience already spends time. This makes sure your ad is in a relevant place. For example, a SaaS advertiser targeting small businesses saw a 32% higher click-through rate (CTR) by placing ads on “small business productivity” articles instead of broad “business” audiences.
3. Adopt Privacy-First Identity Solutions (No Cookies Needed)
You don’t need cookies to identify and target users. Privacy-first tools let you reach your audience across channels consistently. For advertisers, reliable options are:
- UID 2.0: An open standard that uses encrypted email addresses (with user consent) to create a unique, compliant ID. It’s supported by major publishers and ad tech platforms.
- First-Party IDs: IDs linked to user logins (like a customer’s account on your website) that stay within your ecosystem, no cross-site tracking needed.
How to Do It:
- Test multiple solutions: Don’t rely on just one identity tool. Support UID 2.0 and first-party IDs to reach more people.
- Prioritize consent: Only use identity data when users clearly agree (like checking a box when signing up for an account). This builds trust and keeps you compliant.
4. Fix Your Measurement (You’re Missing Half the Story)
For advertisers, proving ROI is crucial. In a cookieless world, “last-click attribution” (giving credit to the final click) is useless. You need multi-touch, privacy-compliant measurement that tracks post-view conversions.
How to Do It:
- Track both post-click and post-view conversions: Use first-party data (like user logins) to connect ad exposures to purchases, even if the user doesn’t click right away.
- Use probabilistic attribution: AI models can fill in gaps by linking conversions to ad exposures (without tracking individual users). A retail advertiser could potentially recover a notable portion, say, 25% or more, of “lost” conversions they previously couldn’t track with cookies. That kind of improvement might then help them make a case for, or justify, a moderate increase in ad spend to stakeholders.
How to Simplify the Transition
Adapting to cookie deprecation doesn’t have to be hard, especially with the right help. Look for partners that offer tools to unify first-party data, connect you to many premium publishers for contextual targeting, and provide measurement that shows the full conversion picture, all without confusing tech talk. The goal is simple: keep ROI high while building trust with your audience.
Whether you’re just starting to check your current strategy or need to grow a cookieless campaign, find help to make the process easy.
Final Thought
Cookie deprecation isn’t a step back; it’s a fresh start. Users will engage more with brands that respect their privacy, and regulators will reward compliance. The advertisers who win in this new era are the ones who act now, before their competition does.
You didn’t build your business on cookies; you built it on understanding your audience.
Let’s keep that going.
If you’re looking to craft more effective, AI-driven ad experiences, start with GatherStar today. And if you want dedicated expert support to maximize your results, reach out to the GatherStar team to explore how we can help elevate your programmatic campaigns.