Marketing

How merchants can use the end of third-party cookies – eCommerce Magazin

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We have seen our privacy commercialize over the past 20 years. Until now, users have had to grudgingly accept the collection and processing of their data. On December 10, 2020, six European countries filed a complaint against the use and sale of data with the data protection authorities. These lawsuits are by no means isolated initiatives. Rather, they reflect the widespread demand for an Internet that is no longer based on third-party cookies – and remains free of charge. The complaints point to a general trend: For some years now, there have been an increasing number of initiatives against the collection and management of personal data.

Legislation is increasingly meeting consumer demands for more data protection, as the introduction of the GDPR shows. So far, the regulations have revolved around data protection. Now the tech giants have gone one step further and have restricted cross-site tracking: Google by eliminating third-party cookies and Apple through updates to ITP. From now on, digital actors are forced to adapt to a world with non-identifiable users and to operate their targeting without access to user data.

Marketing in e-commerce: a world without cookies

In any case, cookie advertising has many disadvantages for e-commerce. It is expensive due to the large number of middlemen and sites need to set up consent pop-ups for cookies. 63 percent of Germans are annoyed by the many cookie messages on websites or feel restricted when surfing online. This was the result of a representative survey on behalf of Germany’s largest e-mail providers Web.de and GMX. The result: annoyed users who are not in the mood to buy. Ultimately, this shift in digital advertising is an opportunity to think about smarter, more user-friendly advertising.

Whether you want it or not: web players will have to do without third-party cookies. Will this revolution call into question the original principle of free access to the web? How can we survive without the revenue from targeted advertising in a gratification-based Internet when users are used to free content and want it to stay that way? The end of cookies will force all web players to find new ways of marketing in e-commerce to reach internet users.

Contextual advertising: transparent, interest-centered and completely without cookies

The solution is: contextual advertising. More and more website operators are choosing to implement context-sensitive advertising on their pages. This type of advertising is no longer based on personal data. It is based on the content of the respective article and thus delivers a better return on investment. The jeans brand Levis, for example, provides proof. In order to introduce a new sustainable jeans line, the company wanted to raise the awareness of the brand among female shoppers. With the help of specially developed AI technology, Seed day Identify popular content that matched the interests of the target audience. Thus, they were able to enable the brand to fully integrate their advertising messages into relevant and engaging content. The Contextual Engagement Display solution was applied to the entire Fashion Content area to ensure that the content is displayed to exactly the right users at exactly the right time – without having to rely on third-party cookies. After launching the campaign, Levis increased its ad recall rate by 41 percent.

In the future, contextual advertising will replace traditional target group targeting because it offers the possibility of reaching consumers transparently and without cookies. Contextual targeting is more sophisticated than ever. Contextual AI is able to interpret the tonality, mood and emotions of an article with an almost human-like understanding. This allows advertisers to operate more effective and better targeted digital marketing in e-commerce. With the help of the algorithm based on machine learning, retailers can optimize their content on the one hand and collect more extensive data on the interactions of users with their content on the other.

Marketing in e-commerce has to be smarter, faster and more agile

The pandemic has shown that e-commerce marketing has to be smarter, faster and more agile than ever. While consumer behavior and consumption change rapidly, the proven effectiveness of contextual measures remains constant. Hyper-relevant advertisements that grab consumers’ attention and guide them through their online journey automatically make them more loyal customers. Now that the attention span of users has hit rock bottom, it is particularly important to place advertising where it can positively influence brand perception. Contextual advertising can do just that. The great advances in AI and predictive analytics mean that in-depth, real-time contextual analytics can go hand in hand with data protection compliance.

These challenges represent a great opportunity for innovation in marketing in e-commerce. We now have the chance to get advertising back on track. That means delivering appealing and relevant advertising that offers a great user experience and is supported by new technologies and strategies. Studies consistently show that consumers are willing to accept useful advertising in exchange for free content.

The key to success in 2021 will be to work with partners who use intelligent technologies to deliver interest-centric rather than user-data-centric advertising. Only in this way can it be remembered, trigger a positive feeling and be of benefit to everyone.

Also read: Personalized Advertising – Legal Framework, Opportunities and Opportunities.

Marketing E-Commerce, Jan-Philipp Kröll
Image: Seedtag

About the author: Jan-Philipp Kröll (JP) is Country Manager Germany at Seedtag. At the beginning of his career he headed the sales team at Adjug, the first digital marketplace for display ads in Germany. This was later sold to IgnitionOne (part of Dentsu Inc.), where he built up the operational business and took over responsibility for the programmatic display solutions. He later founded the digital advertising company recognified with two friends, which was taken over by Seedtag at the beginning of the year.

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