Only half (51%) of marketers are prepared for the depreciation of third-party cookies, according to a new report from Warc.
The findings show that only 2% of marketers are using techniques like market mix modelling, attribution and experiments to assess the full impact of their marketing. Meanwhile, 22% say they use no modelling at all.
The report, entitled ‘The future of Measurement’, examines the latest trends across four key areas, including AI, the growth of synthetic data, the demise of third party cookies and closing the sustainability gap.
It highlights that marketers should make better use of the techniques –attribution (which is the process of assigning credit to different touchpoints to give real time insight into performance drivers), mixed market modelling (using advanced statistics to get a holistic overview of all channels), and experiments to measure changes in consumer behaviour.
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In addition, it suggests that 60% of data used to develop AI and analytics applications will be synthetically generated, which means that unlike real data it is produced artificially using mathematical models and algorithms.
To manage this, the report indicates that marketers should develop clear codes of ethics around the use of AI.
Rayn HQ CEO and co-founder Tim Geenen said: “There are many benefits [to producing synthetic data], from achieving more accurate results, to building new data sets that reflect our diverse society and opening the door to advanced ways of understanding audiences”.
In addition, the report highlights that due to new regulations set to take place in 2024 mean companies will have to provide more granular data on carbon emissions, including those generated by advertising.
Based on research from Lumen, Magna and Adelaide, the report recommends advertising in higher quality media with better engagement rates to reduce digital footprint and emissions.
“Amidst the swirl of excitement around Gen AI, another significant inflection point is fast approaching. In Q3 of this year, Google is finally due to phase out third-party cookies,” said Warc research and insights managing editor Paul Stringer.
He added: “While the threat of cookie depreciation has loomed for some time now, evidence suggests that advertisers are neither fully prepared or aware of the different solutions available.”
“With measurement continuing to evolve in several directions at once, marketers find themselves battling multiple headwinds: not only the demise of third party cookies, but new regulations around sustainability reporting, and of course, the growing influence and impact of AI,” he concluded.
