The Role of Cookies in Addressability and What Comes Next

Cookies have long played a key role in addressability by storing a user’s browsing behaviour and providing identifiers (match keys) that allow advertisers to deliver personalized ads. However, with the growing push toward privacy and changes from companies like Apple and Google, cookies are being phased out, leaving advertisers searching for new solutions.

For instance, if a user visits a travel booking site and browses vacation packages to Greece, cookies enable the site to remember their preferences and display personalized ads for hotel deals or flight offers. However, with third-party cookies becoming more restricted, advertisers must pivot to alternatives like first-party data or device IDs.

The importance of cookies lies in their ability to track user activity across websites, helping brands reach consumers with relevant messages based on their past behavior. But as third-party cookies become more restricted, advertisers must pivot to alternatives such as first-party data, hashed emails, and device IDs. These alternatives allow for continued addressability, but without relying on the data-gathering methods associated with cookies.

Data clean rooms are another emerging solution, allowing advertisers to combine datasets securely without sharing personal identifiers. While the shift away from cookies presents challenges, it also drives innovation. Brands must now explore a range of tools that prioritize both privacy and effective targeting, ensuring the future of addressability remains strong.