With fingerprinting making the headlines, what are the genuine alternatives to the cookie that the ad industry should consider? Mark Smith looks at the runners and riders…

Between a rock and a hard place

Digital marketing is facing a dichotomy. 

On one hand the phasing out of third-party cookies means it must leverage new approaches to gaining user insights. But on the other, it faces a consumer base which is aware – and even fearful – of how such methods impact their privacy. Regulators and even big tech are also increasingly banging the privacy drum.

So the ad tech sector now finds itself between a rock and a hard place. It must find new ways forward while also navigating privacy fears. 

One example of where this has come to a head is fingerprinting. It enables the collection of information about a device’s hardware or software to uniquely identify a particular device and user. It can then enable targeted advertising and website optimisation, among other potential benefits.

But because ‘fingerprints’ cannot be easily cleared like cookies, it makes it harder for users to retain control over their privacy – and that has raised concerns. 

Indeed, when Google announced it would no longer prohibit users from using fingerprinting, the move elicited a rebuke from the UK Information Commissioner’s Office, which branded Google’s stance ‘irresponsible’.  And it is not just regulators but consumers who are concerned about privacy. According to data, 68% of consumers globally are worried about it too.

But James Rosewell, co-founder of Movement for an Open Web, said marketers did not have to choose between privacy and effective targeted advertising.

“They absolutely can co-exist; you just have to take a rational look at what we mean by privacy. Some people in some conditions will welcome controlled personalised advertising that presents them with offers and more relevant adverts. Some people, or indeed the same person depending on context, would not.”

While fingerprinting is currently in the privacy crosshairs, it is far from the only game in town. Other techniques which marketers can harness include:

Probabilistic Tracking:

The word ‘probable’ is key here because this method uses machine learning and statistical models to try and estimate the probability of different marketing touchpoints influencing a conversion.

Identity Graphs: 

A database that correlates and stores all the identifiers held on customers – including both virtual and real-world data. This could be information ranging from email addresses, cookies, usernames, or home addresses, allowing all the information held to be used in concert to enable greater understanding of the user. 

First Party Data:

Undoubtedly the simplest approach which best helps avoid privacy concerns. This is information gleaned with the user’s knowledge directly from its interactions with a website, or via email surveys or other direct contact. By its nature, it is also hyper-accurate. 

Contextual Targeting:

This uses algorithms to analyse the content of websites that a user is viewing, enabling that user to then be essentially ‘profiled’ based on their level of interaction and interest in that site. 

Universal IDs:

An alternative to third party cookies, universal IDs are a unique identifier which enables marketers and advertisers to identify users across multiple different devices and websites. 

Getting a grip on the changing landscape

While there may be alternative tools ready to be picked up, the industry is scrambling to understand how best to use them – with confusion and even apathy creeping in, according to Dan Hesmondhalgh, Co-founder of paapi.ai.

He said companies should not expect big tech to solve privacy concerns alone, adding that those which get a grip of the changing landscape will have a competitive advantage. 

“Advertisers expect big tech – Google, Meta, Apple – to solve privacy, but these companies focus on compliance, not necessarily advertisers' needs.”

He said that many advertisers do not realise that addressing privacy challenges falls on them and their agencies. 

“If customer data from advertising is critical to their business, they must invest in capturing it – this will increasingly become a critical competitive advantage for those fastest to adapt.”

But he remains sceptical over whether some technologies can be scaled to the degree needed, and said ID-less solutions leveraging Privacy Enhancing Technologies (PETs) such as Google’s Privacy Sandbox are a more viable way forward.

“The way it works is that each user’s browser is the identifier, which can be used to target users on and tie back impressions to conversions, while fully preserving the user's privacy.”

And with the upheaval around cookies and the need to find alternatives, the race was there to be won for companies which successfully harness new methods. 

“It's hard to take action against the backdrop of uncertainty, I get it – there have been so many false starts, but the industry is woefully underprepared.

“It's on the individuals who could stand to make a name for themselves in their organisations to lead the charge on this – as it is the future – as well as brands to lean on their agencies, and make the business case internally that we need to test this now with low budgets, even if it doesn't yield performance in the short term.”

With the business environment and technology changing rapidly, the race is on to find alternatives methods of gaining insights and targeting advertising. Privacy and technology does not present a binary choice, and the battle is there to be won for those that are willing to embrace novel solutions first.