Agencies prepare for less dependence on cookies


Omnicom Media Group (OMG) managing director for investment and specialist solutions Daler Kendzhaev

PETALING JAYA: Omnicom Media Group (OMG) is assisting brands to prepare their digital advertising strategies as third-party cookies are diminishing due to privacy concerns.

As Google had announced that it would be reversing its decision to deprecate third-party cookies on Chrome, OMG Malaysia anticipates a drop in third-party cookie availability due to opt-outs, as consumers begin making informed choices around privacy across web browsing.

As such, the agency has begun working with advertisers and clients to ensure there are no hiccups in their digital-advertising initiatives.

OMG Malaysia managing director for investment and specialist solutions Daler Kendzhaev told StarBiz the agency’s clients are in a good position to navigate future signals upon third-party cookie deprecation.

“We started our work streams with our clients several years ago and have been helping them leverage their first-party data to create a robust data-driven marketing strategy.

“Several successful client case studies have emerged as a result. In the automotive industry, for example, we leveraged a client’s first-party data via a customer data platform and enriched it with additional signals.

“For the quick-service restaurant industry, we assisted them in deploying a tactic that uses predictive audiences in their campaign, which delivered greater results.

“The cookieless world is not a new concept for OMG. In fact, in many ways, we have been preparing for this transformation,” he added.

Cookies are small files which are used to target advertising by tracking web navigation and they have recently been subject to greater regulation globally.

The text files gather data about users’ browsing activity and identify computers that are connected to a network.

First-party cookies are used to collect information activities on a particular site to improve user experience.

They are website-specific and once a someone clicked off the site, first-party cookies will stop tracking the browser.

Third-party cookies, on the other hand, work by embedding a persistent file on individual computers, working across the Internet to collect information about overall browsing habits.

Unlike first-party cookies, third-party cookies are generated externally by digital advertising agencies.

When users visit a site, the cookies track the site activity and save data about the browsing session such as the sites visited and how much time is spent on certain pages.

The data is sent back to the third party who created the cookie and used to build individual and group audience profiles.

Asked whether clients are shifting their ad spend to different channels as a result of third-party cookie deprecation, Kendzhaev said cookie deprecation is unlikely to have a direct impact on shifts in channel investments.

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