With the ongoing deprecation of cookies, independent agencies are pivoting their focus towards identifying new target audiences, experimenting with artificial intelligence, and expanding their data tools to adapt to the forthcoming measurement changes, which may vary for independents compared to their holding company counterparts.
According to Alexander Potts, senior vice president of programmatic and media lead at Tombras, independent agencies are likely to adopt a more diverse approach to dealing with cookie deprecation. Potts emphasized that independents will tailor their strategies to the specific requirements of their business-focused clients while demonstrating a positive impact on their bottom line.
Development of New Audience Segments
MG Empower, a full-service agency, has recently been collaborating with clients to devise dynamic targeting strategies aimed at identifying opportunities for audience expansion. Lucy Walker, head of MG Media at MG Empower, highlighted the agency’s efforts to comprehend their clients’ primary customer segments and formulate content strategies to engage these audiences effectively in the absence of cookies.
Walker also mentioned the agency’s exploration of AI functionalities introduced by media platforms and their vigilant monitoring of these platforms to assess their efficacy, scalability, and brand safety measures.
Furthermore, Walker discussed the utilization of targeted lead generation campaigns to uncover new audience segments for brands. By closely collaborating with clients to analyze their marketing schedules and synchronize campaigns, the agency can pinpoint audiences with purchase intent and nurture them into loyal customers.
Enhancement of Data Capabilities and Measurement Practices
Amidst the cookie transition, many agencies are prioritizing the establishment of robust data partnerships and tools. Ray Rosti, chief digital officer at Publicis Health Media, underscored the importance of adopting a comprehensive strategy rather than relying on a single solution.
Publicis Health Media initiated a data Request For Information (RFI) process to validate new partners and their datasets, enabling the agency to identify any audience overlaps in their activations. As the deprecation progresses, challenges related to scale and data measurement will emerge, necessitating a recalibration of benchmarks and metrics over time through continuous testing.
In terms of measurement strategies, agencies are diversifying their data sources beyond third-party cookies to create look-alike models with multiple partners. This approach mirrors the efforts of larger agencies to expand data partnerships using first-party data. Independents, such as Crossmedia, leverage partnerships with Experian and TransUnion to develop insights and scale transparently using first-party data in a privacy-compliant manner.
Additionally, agencies are adopting agile impact modeling (AIM) as a hybrid methodology combining marketing mix modeling (MMM) and multi-touch attribution (MTA) to analyze aggregate sales data effectively. Crossmedia has integrated AIM into its client operations, offering a balanced approach that leverages historical data insights.
As agencies explore alternatives to cookies in the long term, the growth of retail media presents an opportunity to navigate the impending transition effectively. April Carlisle, executive vice president of commerce at Spark Foundry, highlighted the significance of retail media networks as full-funnel media partners with access to verified first-party data for precise closed-loop reporting.
Moreover, the shift away from cookies may prompt agencies to address targeting inefficiencies and reevaluate their approaches to audience segmentation. By reassessing targeting parameters and investing in more accurate strategies, agencies can enhance their effectiveness in reaching the right audiences and driving meaningful outcomes.
In conclusion, the changes brought about by cookie deprecation are poised to usher in a transformative period for agencies and the advertising industry, encouraging a shift towards more refined and effective targeting practices.
