Since people have been expressing concerns over data
privacy, leading web browsers have decided to remove cookies from their sites
and this will bring several challenges for e-commerce
merchants. Indeed, retailers have been using the information collected to
design relevant ads.
What is the importance of cookies for sellers? It helps them
build digital identities and these
have become extremely significant in the competitive world of e-commerce. It
seems that without these, answering simple questions is very hard. As such, it
is difficult for advertisers to measure ad impressions, frequency, and classify
new and returning website visitors.
What can firms do to address this problem? Industry giants
such as Google have been working on solutions to help e-commerce companies. One
such example is FloC. How does this work. It will group users into
cohorts having a common identifier. However, currently, none of the proposed
solutions seem to have gained momentum. Moreover, there is the issue of
cross-platform identification to be tackled.
With the problems related to digital
identity, there comes ad targeting challenges. Advertisers are going
to lose that level of granularity that they have become accustomed to thanks to
cookies. The next article posted on this blog will look at this issue.
Cookies help build digital identities © Royalty-free image
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