IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v188y2023ics0040162522008186.html
   My bibliography  Save this article

Cookiepocalypse: What are the most effective strategies for advertisers to reshape the future of display advertising?

Author

Listed:
  • El Hana, Nadr
  • Mercanti-Guérin, Maria
  • Sabri, Ouidade

Abstract

A third-party cookie is a tracking code set by a third-party platform or a technology provider on the website the user is visiting. This small amount of text identifies users online, reveals their interests, and provides powerful information useful in enhancing online display advertising. With the passing of new legislation protecting the user's privacy, the phasing out of third-party cookies has started. By the end of 2024, all major browsers will block all third-party cookies and identifiers for advertiser (IDFA) tracking. Therefore, advertisers and marketers are becoming more restricted in their ability to create user profiles, personalize ads, and analyze performances. Advertisers need to start pivoting now to prepare for what is next. In that context, the purpose of this study is to investigate different alternatives and forecast technological progress to help advertisers implement the most appropriate strategies and technologies to effectively overcome the disappearance of third-party cookies. By conducting two qualitative studies, semistructured interviews with 15 experts and a focus group, we established a framework that categorizes the alternative strategies into six categories as well as the technological progress made by different actors in the value chain. The study has strong implications for advertisers and policy-makers.

Suggested Citation

  • El Hana, Nadr & Mercanti-Guérin, Maria & Sabri, Ouidade, 2023. "Cookiepocalypse: What are the most effective strategies for advertisers to reshape the future of display advertising?," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
  • Handle: RePEc:eee:tefoso:v:188:y:2023:i:c:s0040162522008186
    DOI: 10.1016/j.techfore.2022.122297
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162522008186
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2022.122297?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jean-Samuel Beuscart & Kevin Mellet, 2013. "Competing Quality Conventions in the French Online Advertising Market," Post-Print hal-00946749, HAL.
    2. Bleier, Alexander & Eisenbeiss, Maik, 2015. "The Importance of Trust for Personalized Online Advertising," Journal of Retailing, Elsevier, vol. 91(3), pages 390-409.
    3. repec:hal:spmain:info:hdl:2441/20mo2m90qf95s9lpanf6s6uho5 is not listed on IDEAS
    4. Jiang, Ruth & Kleer, Robin & Piller, Frank T., 2017. "Predicting the future of additive manufacturing: A Delphi study on economic and societal implications of 3D printing for 2030," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 84-97.
    5. Kamena, Roger, 2021. "Moving towards inferential attribution modelling in a world without third-party cookies," Applied Marketing Analytics: The Peer-Reviewed Journal, Henry Stewart Publications, vol. 7(2), pages 122-130, September.
    6. Damien Geradin & Dimitrios Katsifis & Theano Karanikioti, 2021. "Google as a de facto privacy regulator: analysing the Privacy Sandbox from an antitrust perspective," European Competition Journal, Taylor & Francis Journals, vol. 17(3), pages 617-681, September.
    7. Kaifu Zhang & Zsolt Katona, 2012. "Contextual Advertising," Marketing Science, INFORMS, vol. 31(6), pages 980-994, November.
    8. Avi Goldfarb & Catherine Tucker, 2011. "Online Display Advertising: Targeting and Obtrusiveness," Marketing Science, INFORMS, vol. 30(3), pages 389-404, 05-06.
    9. Michael Trusov & Liye Ma & Zainab Jamal, 2016. "Crumbs of the Cookie: User Profiling in Customer-Base Analysis and Behavioral Targeting," Marketing Science, INFORMS, vol. 35(3), pages 405-426, May.
    10. Wiese, Melanie & Martínez-Climent, Carla & Botella-Carrubi, Dolores, 2020. "A framework for Facebook advertising effectiveness: A behavioral perspective," Journal of Business Research, Elsevier, vol. 109(C), pages 76-87.
    11. Avi Goldfarb & Catherine Tucker, 2011. "Rejoinder--Implications of "Online Display Advertising: Targeting and Obtrusiveness"," Marketing Science, INFORMS, vol. 30(3), pages 413-415, 05-06.
    12. Thomas, Ian, 2021. "Planning for a cookie-less future: How browser and mobile privacy changes will impact marketing, targeting and analytics," Applied Marketing Analytics: The Peer-Reviewed Journal, Henry Stewart Publications, vol. 7(1), pages 6-16, June.
    13. Oliver Rutz & Randolph Bucklin, 2012. "Does banner advertising affect browsing for brands? clickstream choice model says yes, for some," Quantitative Marketing and Economics (QME), Springer, vol. 10(2), pages 231-257, June.
    14. Aguirre, Elizabeth & Mahr, Dominik & Grewal, Dhruv & de Ruyter, Ko & Wetzels, Martin, 2015. "Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness," Journal of Retailing, Elsevier, vol. 91(1), pages 34-49.
    15. Thompson, Craig J & Locander, William B & Pollio, Howard R, 1989. "Putting Consumer Experience Back into Consumer Research: The Philosophy and Method of Existential-Phenomenology," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 133-146, September.
    16. Jean-Samuel Beuscart & Kevin Mellet, 2013. "Competing Quality Conventions in the French Online Display Advertising Market," Journal of Cultural Economy, Taylor & Francis Journals, vol. 6(4), pages 402-418, November.
    17. Declan Butler, 2007. "Data sharing threatens privacy," Nature, Nature, vol. 449(7163), pages 644-644, October.
    18. Melissa Clark & Monica B. Fine & Cara-Lynn Scheuer, 2017. "Relationship quality in higher education marketing: the role of social media engagement," Journal of Marketing for Higher Education, Taylor & Francis Journals, vol. 27(1), pages 40-58, January.
    19. DeNardis, L. & Hackl, A.M., 2015. "Internet governance by social media platforms," Telecommunications Policy, Elsevier, vol. 39(9), pages 761-770.
    20. Long, Lucas, 2022. "Effective first-party data collection in a privacy-first world," Applied Marketing Analytics: The Peer-Reviewed Journal, Henry Stewart Publications, vol. 7(3), pages 202-210, February.
    21. Hana Choi & Carl F. Mela & Santiago R. Balseiro & Adam Leary, 2020. "Online Display Advertising Markets: A Literature Review and Future Directions," Information Systems Research, INFORMS, vol. 31(2), pages 556-575, June.
    22. Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bleier, Alexander & Goldfarb, Avi & Tucker, Catherine, 2020. "Consumer privacy and the future of data-based innovation and marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 466-480.
    2. Kalaignanam, Kartik & Kushwaha, Tarun & Rajavi, Koushyar, 2018. "How Does Web Personalization Create Value for Online Retailers? Lower Cash Flow Volatility or Enhanced Cash Flows," Journal of Retailing, Elsevier, vol. 94(3), pages 265-279.
    3. Kelly D. Martin & Patrick E. Murphy, 2017. "The role of data privacy in marketing," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 135-155, March.
    4. Bleier, Alexander & Eisenbeiss, Maik, 2015. "The Importance of Trust for Personalized Online Advertising," Journal of Retailing, Elsevier, vol. 91(3), pages 390-409.
    5. Shun-Yang Lee & Julian Runge & Daniel Yoo & Yakov Bart & Anett Gyurak & J. W. Schneider, 2023. "COVID-19 Demand Shocks Revisited: Did Advertising Technology Help Mitigate Adverse Consequences for Small and Midsize Businesses?," Papers 2307.09035, arXiv.org, revised Jan 2024.
    6. Potoglou, Dimitris & Palacios, Juan & Feijoo, Claudio & Gómez Barroso, Jose-Luis, 2015. "The supply of personal information: A study on the determinants of information provision in e-commerce scenarios," 26th European Regional ITS Conference, Madrid 2015 127174, International Telecommunications Society (ITS).
    7. Zeng, Fue & Ye, Qing & Li, Jing & Yang, Zhilin, 2021. "Does self-disclosure matter? A dynamic two-stage perspective for the personalization-privacy paradox," Journal of Business Research, Elsevier, vol. 124(C), pages 667-675.
    8. Villanova, Daniel & Bodapati, Anand V. & Puccinelli, Nancy M. & Tsiros, Michael & Goodstein, Ronald C. & Kushwaha, Tarun & Suri, Rajneesh & Ho, Henry & Brandon, Renee & Hatfield, Cheryl, 2021. "Retailer Marketing Communications in the Digital Age: Getting the Right Message to the Right Shopper at the Right Time," Journal of Retailing, Elsevier, vol. 97(1), pages 116-132.
    9. Anindya Ghose & Vilma Todri, 2015. "Towards a Digital Attribution Model: Measuring the Impact of Display Advertising on Online Consumer Behavior," Working Papers 15-15, NET Institute.
    10. Mpinganjira, Mercy & Maduku, Daniel K., 2019. "Ethics of mobile behavioral advertising: Antecedents and outcomes of perceived ethical value of advertised brands," Journal of Business Research, Elsevier, vol. 95(C), pages 464-478.
    11. Cloarec, Julien, 2020. "The personalization–privacy paradox in the attention economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    12. Vinay Singh & Brijesh Nanavati & Arpan Kumar Kar & Agam Gupta, 2023. "How to Maximize Clicks for Display Advertisement in Digital Marketing? A Reinforcement Learning Approach," Information Systems Frontiers, Springer, vol. 25(4), pages 1621-1638, August.
    13. David A. Schweidel & Yakov Bart & J. Jeffrey Inman & Andrew T. Stephen & Barak Libai & Michelle Andrews & Ana Babić Rosario & Inyoung Chae & Zoey Chen & Daniella Kupor & Chiara Longoni & Felipe Thomaz, 2022. "How consumer digital signals are reshaping the customer journey," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1257-1276, November.
    14. Mengzhou Zhuang & Eric (Er) Fang & Jongkuk Lee & Xiaoling Li, 2021. "The Effects of Price Rank on Clicks and Conversions in Product List Advertising on Online Retail Platforms," Information Systems Research, INFORMS, vol. 32(4), pages 1412-1430, December.
    15. Min Tian & Paul R. Hoban & Neeraj Arora, 2024. "What Cookie-Based Advertising Effectiveness Fails to Measure," Marketing Science, INFORMS, vol. 43(2), pages 407-418, March.
    16. Hana Choi & Carl F. Mela & Santiago R. Balseiro & Adam Leary, 2020. "Online Display Advertising Markets: A Literature Review and Future Directions," Information Systems Research, INFORMS, vol. 31(2), pages 556-575, June.
    17. Potoglou, Dimitris & Palacios, Juan-Francisco & Feijóo, Claudio, 2015. "An integrated latent variable and choice model to explore the role of privacy concern on stated behavioural intentions in e-commerce," Journal of choice modelling, Elsevier, vol. 17(C), pages 10-27.
    18. Weijia Dai & Hyunjin Kim & Michael Luca, 2023. "Frontiers: Which Firms Gain from Digital Advertising? Evidence from a Field Experiment," Marketing Science, INFORMS, vol. 42(3), pages 429-439, May.
    19. Katharina Baum & Olga Abramova & Stefan Meißner & Hanna Krasnova, 2023. "The effects of targeted political advertising on user privacy concerns and digital product acceptance: A preference-based approach," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    20. Lütjens, Henk & Eisenbeiss, Maik & Fiedler, Maximilian & Bijmolt, Tammo, 2022. "Determinants of consumers’ attitudes towards digital advertising – A meta-analytic comparison across time and touchpoints," Journal of Business Research, Elsevier, vol. 153(C), pages 445-466.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:188:y:2023:i:c:s0040162522008186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.