Despite the recent reprieve in the phase-out of third-party cookies, most experts agree that their days are numbered. These small data trackers, once the cornerstone of digital advertising, are becoming relics of a bygone era, soon to be phased out in favor of more privacy-conscious alternatives.
While many in the digital advertising world scramble to adapt to this impending change, one sector remains unfazed: Connected TV (CTV). In fact, the CTV industry has never needed cookies to thrive, and it’s leading the charge into a new era of digital video advertising without them.
The Gradual Decline of Third-Party Cookies
Third-party cookies revolutionized online advertising by allowing marketers to track user behavior across multiple websites, building detailed profiles to target ads with precision. This capability transformed digital advertising, giving rise to programmatic ad buying and enabling real-time bidding on ad inventory.
However, as privacy concerns grew, so did the scrutiny on these ubiquitous data trackers. Major browsers like Safari and Firefox have already blocked third-party cookies, and even Google Chrome, the last major holdout, has announced plans to do the same by the end of 2024.
For many, the decline of third-party cookies signals the end of an era in digital advertising. But while some see this as a looming challenge, others view it as an opportunity—a chance to innovate and adopt new technologies that prioritize user privacy without sacrificing the sophisticated targeting and measurement capabilities that advertisers rely on. CTV, in particular, stands out as a shining example of how the industry can thrive in a cookieless future.
CTV: The Cookieless Champion of Digital Advertising
Connected TV refers to any television that connects to the internet and streams content from apps like Netflix, Hulu, and YouTube. Unlike traditional linear TV, which relies on cable or satellite signals, CTV delivers content over the internet, opening up new avenues for advertisers to reach audiences in ways that were previously unimaginable.
According to eMarketer, CTV is on track to account for more than one-fifth of total programmatic video ad spending by the end of 2022, and by the end of 2024, it is expected to surpass linear TV in market share, solidifying its position as the primary driver of digital video growth.
What makes CTV so unique - and so resilient in a cookieless world - is its app-based environment. Unlike web browsers that depend on cookies to track user behavior across different sites, CTV platforms are built on proprietary operating systems (OSs) specifically designed for streaming.
These OS's, used by the majority of original equipment manufacturers (OEMs) for leading TV devices, do not support cookies. Instead, they utilize anonymized device IDs, unique identifiers tied to each device, to track user behavior and deliver targeted ads.
This reliance on device IDs instead of cookies offers several advantages. First, it allows advertisers to target specific households with a high degree of precision, delivering ads that are relevant to viewers based on their interests and viewing habits. This method is similar to traditional TV advertising, where ads are targeted based on broad demographics, but with a level of granularity that is unmatched by linear TV.
For example, a brand like Wells Fargo could target a mortgage product ad to devices historically used by viewers who have shown interest in homebuying or are entering specific life stages, such as newlyweds or new parents. Crucially, this targeting relies on the anonymized device ID, not data gleaned from third-party cookies.
Contextual Targeting: CTV’s Secret Weapon
Another area where CTV excels is in contextual targeting. Just like in traditional TV, where an ad for a fast-food chain might run during a sports event, CTV advertising can align ads with the context in which they appear. This approach allows brands to reach viewers in a way that feels natural and relevant, enhancing the overall effectiveness of the ad. For instance, a McDonald’s ad could be shown during a streaming NFL game, creating a seamless connection between the content and the advertisement. This method doesn’t rely on cookies but leverages the content itself to create a meaningful ad experience that resonates with viewers.
Moreover, the shift away from third-party cookies is prompting advertisers to enhance their first- party data collection strategies. CTV platforms are a goldmine for first-party data, gathered directly from users with their consent. This data includes valuable insights such as demographics, viewing history, and content preferences, enabling advertisers to target audiences with greater precision.
For example, Hulu could use its first-party data to partner with a grocery chain and target viewers who frequently watch cooking shows with ads showcasing gourmet ingredients. This approach, rooted in privacy-compliant first-party data, stands in stark contrast to the often-intrusive nature of third-party cookies.
Advanced Measurement Capabilities in a Cookieless World
One of the most significant advantages of CTV is its advanced measurement capabilities, which offer advertisers a future-proof way to gauge the success of their campaigns.
Unlike cookie- reliant platforms, CTV provides robust tools for measuring and optimizing return on investment (ROI) and return on ad spend (ROAS). Through deterministic data and first-party data partnerships, CTV platforms can offer advertisers a clear and accurate view of campaign performance across multiple devices and platforms.
The Future of CTV Advertising
As the digital advertising landscape continues to evolve, CTV is poised to lead the way into a cookieless future. Its app-based environment, reliance on device IDs, and advanced contextual and audience targeting capabilities make it a powerful tool for advertisers looking to reach and engage audiences without the need for third-party cookies.
Furthermore, CTV’s robust measurement tools ensure that advertisers can continue to optimize their campaigns and achieve their goals, even as the broader industry grapples with the decline of cookie-based tracking.
In essence, CTV has been thriving in a cookieless environment from the very beginning. As the rest of the digital advertising world scrambles to adapt, CTV stands as a testament to the power of innovation and forward-thinking. Whether through precise device ID targeting, rich first-party data, or advanced measurement capabilities, CTV offers a glimpse into the future of digital advertising—one that is both effective and respectful of user privacy.
In Conclusion
So, while the digital world may still be catching up, CTV is already living in the future. The industry’s ability to deliver targeted, relevant, and measurable advertising without the need for cookies is not just a triumph for CTV; it’s a blueprint for the entire digital advertising ecosystem as it moves toward a more privacy-conscious and effective future.
Origin is revolutionizing the way brands connect with consumers through Connected TV (CTV) advertising. Specializing in innovative, zero-code CTV advertising formats, Origin enables marketers to create dynamic and engaging ad experiences both in the living room and beyond.
With our deep expertise in creative technology, Origin helps brands captivate audiences, drive performance, and stay ahead in a rapidly evolving digital landscape. Their comprehensive suite of services includes everything from strategy and media operations to product development and sales, ensuring that your brand can effectively navigate and thrive in a cookieless future. Partnering with Origin means leveraging our award-winning solutions to deliver impactful, privacy-compliant advertising that resonates with today’s consumers and sets the stage for future success.
Origin is an award-winning Creative Technology company whose zero code CTV ad formats enable marketers to deliver dynamic and responsive ad experiences in the living room and outside the home.
With unparalleled creative capabilities and proprietary ad serving technology, Origin’s off-the-shelf and custom solutions are trusted by agencies, brands, creative teams and programmatic platforms who want the ads they run to get the attention, engagement and outcomes they deserve.
Founded by media veterans Stephen Strong and Fred Godfrey, Origin is driven by the belief that to win a viewer today, we must look beyond how it was done yesterday.
Learn more at: originmedia.tv
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