A new study by Blis reveals the challenges and opportunities of cookieless advertising

The digital advertising industry is undergoing a major transformation as third-party cookies are being phased out by browsers like Chrome. This means that advertisers need to find new ways to identify and target their audiences across the open internet, without relying on personal data that may violate consumers’ privacy.

One of the solutions that some publishers and platforms have adopted is to use emails or phone numbers as advertising signals, such as The TradeDesk’s Unified ID. However, a new study by Blis, the integrated ad planning, buying and measurement platform, shows that this approach may not be as effective or ethical as it seems.

According to the study, nearly 75 million Americans are unaware that, by sharing their email or phone number, they are also consenting to be anonymously identified by advertisers. Additionally, 38% of consumers who are aware of it still find it invasive. This means that publishers and platforms that use these solutions may face consumer backlash, as well as regulatory scrutiny.

Moreover, the study reveals that these solutions do not solve the problem of reaching the unreachable audience. A previous Blis study showed that half of mobile audiences and almost half of desktop audiences are already unreachable across the open internet, due to factors such as ad blockers, private browsing, and device fragmentation. And now, the new findings suggest that advertisers who use Unified ID solutions may still be missing a large portion of their audience, or worse, making them feel that advertising is intrusive.

The study also highlights the need for more education and transparency in the industry. Almost a third (28%) of consumers either don’t understand or are unsure why advertising is crucial to keeping the Internet free. However, 84% of media agencies assume the opposite, showing a disconnect between what media planners think consumers know and what they genuinely do.

Furthermore, the study shows that while Google is developing its own cookieless solution, called Chrome Privacy Sandbox, over half (61%) of marketers and media planners haven’t yet tested it. Of the 39% of respondents that have tested it, 56% work in media agencies, and 44% are brand marketers. As the latest IAB Tech Lab report pointed out, Privacy Sandbox presents numerous challenges, such as supporting certain use cases such as lookalike modeling, frequency capping, and interoperability.

So, what can advertisers do to reach their audience without compromising their privacy? Aaron McKee, CTO at Blis, offers some advice: “As we’ve been saying for years, finding cookieless solutions that truly allow advertisers to reach their audiences accurately is not an easy task. However, most of the solutions out there just partially support advertisers in reaching the audience, which is already unreachable since third-party cookies started to be removed from the open internet. The crucial point to remember is that brands must find a good balance between their chosen solutions to ensure consumers don’t feel uncomfortable with ads. After all, their privacy concerns are exactly what brought the industry to where we are.”

One of the solutions that Blis offers is to use location data as a proxy for audience behavior and intent. Location data is not personal data, as it does not identify individuals, but rather devices. By analyzing the patterns and movements of devices, Blis can infer the interests, preferences, and lifestyles of consumers, and deliver relevant and engaging ads to them. Blis also uses advanced machine learning and contextual signals to optimize ad delivery and measurement, ensuring that advertisers get the best return on their investment.

If you want to learn more about how Blis can help you reach your audience without compromising their privacy, visit their website or contact them today.

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