Contextual targeting in a post-cookie world.

I reviewed the “Beyond The Cookie: The future of Advertising for Marketers & Publishers” survey report from Lotame, and I came across an interesting stat regarding contextual targeting.

According to the Lotame study, 68% of publishers are convinced that contextual targeting on their properties can fill marketer’s needs in a cookieless advertising environment. Marketers aren’t so optimistic, with 65% falling in the not-confident category. The key issue for marketers is tracking conversions to calculate ROAS.

With the end of third-party cookies in Google Chrome, both marketers and publishers are increasingly focused on “customers” as they build their first-party data assets. The general problem with first-party assets is a lack of scale (versus the present cookie-enabled advertising construct).

What will replace cookie-targeted advertising?

I have always been a proponent of contextual targeting, especially within quality, enthusiast content verticals. People follow their passions, and they are extremely engaged with content that fuels their lifestyle. Many types of content can indicate purchase intent, which will continue to be true with or without cookies. However, publishers will need to enrich their current data moving forward to provide adequate solutions for marketers.

What does this mean? The trend toward investment in identity solutions and data will continue as both publishers and marketers seek solutions to prove advertising ROI, especially in the top and mid-funnel. There currently is no one-size-fits-all solution in the marketplace, so look for a patchwork of solutions in the near term.

What do you think about contextual targeting in the post-cookie world?