As the third-party cookie crumbles yet again, the future of digital advertising measurement is somewhat uncertain with a patchwork of solutions in development to replace our beloved snack-sounding snippets of code.
While browser-based cookies have served the digital advertising industry well over the past few decades, associated measurement strategies based on website visits and conversions have also led to over-reliance on retargeting and proxy measurements for business outcomes such as sales.
This is especially true in industries like automotive, where site-based actions don’t often correlate to actual physical sales of cars and trucks.
Moving Beyond Proxy Metrics
Looking at proxies for sales, such as clicks, video views, etc. can be misleading if used alone. In one use case we’ve seen, two campaigns were run with equally strong clicks and web KPIs. However, when sales matching measurement was applied, it revealed campaign one outperformed campaign two by 40 percent. If this advertiser wasn’t looking at sales, they would have missed an opportunity to maximize both KPIs. Using sales data can help marketers sort out what is helping convert shoppers into buyers.
Thankfully, alternative targeting and measurement strategies have proven scalable, allowing marketers to pivot toward crafting an impactful consumer experience to drive sales without solely relying on cookies and their shortcomings.
Scalable & Engaging Alternatives to Cookie-Based Strategies
Targeting the right audience for a marketing message generally involves collecting demographic, psychographic and behavioral data via cookies, and deploying it as third-party data via various channels. Measurement has often followed the same methodology, following a user across devices and assigning attribution via various models, namely MTA or last touch.
But now that third-party cookies are heading for the exit, what can auto marketers pivot toward to target active shoppers or validate their ad spending? In short, develop better creative experiences and track ad exposure to sales, both of which aren’t reliant on cookies and offer a win-win for shoppers and brands alike.
Starting with targeting and creative messages, we know that buying a car or truck is often a group decision, specifically one where multiple members of a household have input. Targeting at the household level offers marketers a scalable alternative to cookie-based targeting, with the additional flexibility of leveraging multiple devices within that household to deliver relevant messaging.
One example would be a CTV ad showcasing the latest model redesign, and subsequent ads within the same household focusing on driving further engagement with the model’s new features via desktop and driving calls to action such as locating a dealer via mobile. Leveraging video within a 100 percent user opt-in canvas also lends itself to a more positive consumer experience, leaving behind the days of high-frequency retargeting with IAB banners that our cookie habit enabled.
Post-Cookie Measurement: Connecting Ad Exposure to Sales
From a measurement perspective, if the ultimate goal of any advertising is to drive sales, then connecting an ad exposure to the sale of a vehicle is the holy grail of a cookieless measurement strategy. Tracking creative messaging, device type and user context (ie. location, time of day) and tying them back to a sale can offer valuable insights for future optimization strategies, again all without the need for cookies.
Sales conversion details can also give insight into whether an advertiser is connecting with the intended targeting segment, too. “Did the truck target purchase a luxury SUV instead?” Understanding competitive sales gives marketers strategic level insight into who their audience is and isn’t. It’s more than seeing who your brand lost out on.
Where some in the industry foresee the deprecation of third-party cookies as a death knell to tried and true targeting and measurement, a new dawn is upon us that will ultimately lead to better experiences and outcomes for auto shoppers and brands. Moving from cookies to carrots may take some discipline, but our industry will emerge healthier in the long run.
As Automotive Lead of Industry Solutions, Jim Johnson is responsible for leveraging VDX.tv’s consumer research and insights tools to develop holistic marketing strategies aimed at guiding clients toward their desired digital advertising outcomes. Prior to joining VDX.tv (formerly Exponential), Jim worked as a Media Planner with Carat on brands including Reebok, VH1, RadioShack and Motorola.
