Future of Programmatic: 58% of advertisers underprepared for a world without cookies

The complete phasing out of third-party cookies is scheduled to take place next year, but many organisations remain unprepared for advertising in a privacy-first environment, a new WARC report finds. 

According to research in The Future of Programmatic, nearly three-quarters (73%) of UK marketers are not well prepared for the withdrawal of third-party cookies, while a majority (58%) of global marketing leaders lack a working understanding of how changing privacy regulations will affect their work.

Why the state of programmatic matters

Traditionally, the programmatic ecosystem has depended upon third-party cookies to target specific audiences with advertising content. 

However, the ongoing demise of the third-party cookie and introduction of new privacy regulations is reducing the capacity of advertisers to track and target audiences on the web. 

Indeed, according to LiveRamp research in the report, more than half of marketers (60%) are concerned about being able to reach audiences once third-party cookies disappear. 

Takeaways

• 73% of UK marketers are not well prepared for the final withdrawal of third-party cookies.
• 58% of marketing leaders do not appear to understand how changes in privacy regulation will impact their systems and tools, or their wider business. 
• 60% of marketers are worried about ‘reaching audiences at scale’ when third-party cookies disappear.
• While lack of preparedness is a concern, some marketers are experimenting with a range of third-party cookie alternatives including Google Topics, first-party data, identity solutions and contextual targeting.

Key quote

“In a post third-party cookie world, the biggest challenge for advertisers is that there isn't a ubiquitous one-size-fits-all answer. I think many advertisers have a plan. They have components of how they'll move forward. But no one is completely clear on how it’ll all come together, just yet” – Leah Askew, SVP, Head of Precision Media, Digitas North America.

Get the report

The Future of Programmatic Advertising is the latest WARC strategy report covering the major trends shaping programmatic advertising over the coming 12 months. WARC subscribers can read the full report here. For non-subscribers a sample report is available to read here.