The Online Ad Cookie Has Officially Crumbled
Posted on Mar 19, 2014 by Kristie Sein
This post was originally published on Wired Insights on March 11, 2014; written by Ayyappan Sankaran, co-founder and CTO of YuMe.
The video brand advertising world is quite familiar with data, as many of us are. But big data — its uses, possibilities and even its meaning — is a new ball game in the industry. Historically, the cookie has been the name of the online advertising game. However, we now live in a multi-screen environment and the browser and cookie are simply less relevant. In addition, consumers have become fearful of cookies. Somehow, a word with a delicious connotation for some has become a nuisance and source of skepticism for others. I, along with many in the industry, would argue that the cookie has officially “crumbled.”
Let’s look at the problems a brand advertiser faces today. A brand video advertiser today lives in an environment where there is content fragmentation on one side and an explosion of devices and screens on which content is consumed. This makes it increasingly difficult for them to reach an attentive & receptive audience at scale. Big data and data sciences-based solutions are best suited to address this problem – all without relying on cookies.
Put simply, big data, analytics and data sciences are now driving the advertising world. Using big data for advertising was once thought of as impossible and cumbersome, but some companies, like ourselves, are now making it possible with new technology advancements and tools. Companies are using data analytics to successfully target consumers online, get their attention and influence their buying decisions — all in a less “sneaky” and more privacy-friendly way than cookies do. It’s especially important for video advertising in a multiscreen world. Cutting-edge engineering is helping change the way video ads are seen and is enabling advertisers to reach their target audiences across all Internet-connected devices.
There are several approaches to solving this problem, but we advocate utilizing data sciences in a nonintrusive way to find out as much as possible about the audience. What they like, where they shop, what they do for fun, what they share, and much, much more — all crucial to finding the perfect target audience. If you’re able to get first-party data (direct feedback from target audiences — what brand wouldn’t love that?), rather than third-party insight (via cookies), you’re on your way to reaching an unparalleled level of targeting accuracy. Also, targeting via data sciences allows for insights on mobile devices and non-browser environments such as apps and Smart TVs — something not possible using cookies.
The name of the game in brand advertising is to find the correct receptive audience, that is actually attentive, at-scale. We can’t imagine a brand advertiser that wouldn’t want the added layers of insights that big data can offer. These millions upon millions of simulations are essentially eliminating the guesswork that has long plagued the traditional advertising world.
Who doesn’t think ads are annoying sometimes? Data science insights are working to change that notion by evoking unmatched data aggregation capabilities to offer increased ad effectiveness and ensure the brand gets the most bang for its buck. By leveraging data sciences, advertisers and publishers get higher targeting accuracy and new audience insights that offer a scale not possible with other targeting technologies in the market today. Using data sciences to create audience segments provides a broad new set of capabilities to both publishers and advertisers in a robust, scalable, and privacy-friendly way.
With audiences more and more fragmented, not to mention distracted, it’s time for insights strewn from data sciences to take brands to the right consumer on the right device at the right time with the right message. The results will further the brand’s business and influence ROI and keep it relevant in this digital world.