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July 20, 2023
Authored by Pierre-Marc Diennet, SVP of Product Management, Fyllo
When I'm asked, "What are you going to do when cookies go away?" I take a moment to consider that many people might not fully grasp the implications of third-party cookie deprecation. It's essential to understand that no single vendor can single-handedly "solve" this issue. Addressing the challenges posed by the deprecation of third-party cookies requires coordinated efforts and industry-wide collaboration. In fact, the complexity is so significant that even Google has been hesitant to pull the cookie deprecation trigger.
The future of digital targeting at scale is fraught with uncertainty, influenced by various factors like privacy regulations, actions taken by mobile phone manufacturers, decisions made by the Safari browser team, and, of course, the move by Chrome to eliminate third-party cookie support.
At Fyllo, we approach this challenge by offering robust and diversified capabilities that empower our clients to outperform, regardless of the cookie landscape. Our understanding is that the future of digital advertising will revolve around three key methods: Device-level advertising, PII-based advertising, and Contextual advertising. These three methods will collectively dominate the landscape of available digital inventory to varying degrees.
While the question of which method will emerge as the dominant one remains unanswered, we aren’t worried - we already outperform in all of these areas. Our focus is on investing in the coordination and expansion of these methods to ensure compliant, scalable, and effective digital advertising for our clients. Rather than relying on the uncertain fate of cookies, we are actively working to shape the future by embracing the approaches we believe will stand the test of time.
We firmly believe that device-level ads will remain a significant part of the digital advertising landscape. While third-party cookies may fade away as a method to build audiences, CTV devices and Mobile Ad IDs are likely to persist and retain relevance for a substantial portion of traffic. Additionally, the emergence of first-party IDs is gaining momentum as a viable device-level advertising method, with companies like ID5, Neustar, and The Trade Desk actively supporting and promoting their own first-party IDs as persistent identifiers.
At Fyllo, we recognize the importance of striking a balance between driving performance using existing cookie capabilities, which we have been doing for 10+ years through Semasio, and exploring new device-level opportunities. We encourage our clients to allocate enough resources to these emerging methods to understand their respective impacts on incremental lift.
In every article discussing the post-cookie world, the emphasis on the significance of first-party data is evident—and rightfully so. The accuracy and reliability of these signals currently drive digital advertising across various platforms, including CTV, social media, and, with the help of onboarding vendors, in display and mobile channels. However, it's crucial to recognize that as the 3rd party cookie is fully deprecated, these solutions will encounter challenges in maintaining the same scale for advertising. Their resolution capabilities heavily rely on the syncing process that utilizes cookies and 65% of publishers confirmed in a recent survey they do not believe that solutions like first-party data and alternative IDs address the ID loss challenge.
At Fyllo, we have already achieved remarkable results for our customers by leveraging these first-party data signals. Our commitment to excellence remains steadfast, and we aim to provide our clients with even more comprehensive and interconnected capabilities. Our plan involves coordinating the use of PII signals with other effective targeting methods. We firmly believe that clients who embrace a compliant collection of first-party data will gain a significant advantage in driving digital strategies at scale. As the digital landscape continues to evolve, we are determined to stay ahead of the curve, empowering our clients with innovative approaches to navigate the post-cookie era successfully.
Contextual advertising is experiencing a renaissance, driven by technological advancements and innovative methodologies. It has evolved into a powerful option that not only thrives in the post-cookie landscape but also delivers impressive results.
Fyllo has an industry-leading semantic contextual product that is delivering outperformance today. Further, we are investing in expanded automation and capabilities that will deliver greater scale for our clients in every major DSP across the world. Pharma Brands, Auto Brands, and CPG companies alike already leverage our products to get real scale.
We also offer an entirely unique capability to bridge the gap between audiences and contextual targeting - producing the most accurate contextual advertising solution in the world. Through our technology, clients can use their PII-based or Device-based audiences to create contextual targets that outperform the competition. In fact, in a recent test with a global agency comparing Tier-1 contextual providers, we delivered the #1 performing contextual segments and delivered 64% lift versus the next best competitor. Essentially, we coordinated the use of all three of these post-cookie strategies for maximum scale, compliance and efficiency.
Contextual advertising is experiencing a renaissance, driven by technological advancements and innovative methodologies. It has evolved into a powerful option that not only thrives in the post-cookie landscape but also delivers impressive results.
The best recommendation we can give to clients - and advertisers - everywhere is to continue refining your post-cookie strategy. But don’t get caught in “analysis paralysis”. Execute. Start allocating budget to all three methods. Make incrementality a key focus of insight. Don’t wait until performance is impacted to determine your best path forward.
If you need us, we’re here to help - ready for whatever the future holds. Our vision for our clients is that they bring whatever strategy, whatever data, whatever plans they have to us and we will ensure that they can outperform their competitors with truly scaled, compliant, and efficient targeting.
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