The Deprecation of 3rd Party Cookies: The Catalyst to Transition into the Next Phase of Web3.0?

"Could the lessened value of the 3rd party cookie be the catalyst to transition the internet into its next phase of Web3.0?"

The next few years could be very influential to how we operate in our digital ecosystem. One that could usher in the beginning of the next & new era of the Internet.

Hear me out for a second...

Currently we are within the Web2.0 regime where 'users' are products to the big walled gardens (Amazon, Google and Facebook etc.) With data being the main currency of the current iteration of the internet, these corporations have become behemoths due to their ability to pull us in with their 'free' products and as a 'fair exchange', acquire information about us, which they in turn 'sell' to marketers. Alongside that, there is the 'Open Internet' which for the sake of this conversation, sits within the browsers which we use to view the internet. Historically, advertisers operating in the Open Internet have relied on this small file called a '3rd party cookie' which is stored on your device by a website other than the one you visit. Though, in the last few years, we 'had' been expecting this to be deprecated as much has changed due to the growing awareness of our loss of privacy. As to why multiple tech companies are creating solutions for the loss of 3rd party cookies in order to future proof themselves and/or others.

Where am I going with this..?

Consider this scenario: 3rd party cookies are no longer as valuable as they once where... though it seems that we are here already? This means that most users being targeted with the 3rd party cookie are potentially un-addressable due to the growing inaccuracy of the cookie. Scary concept. However, as mentioned, there are 100s of ID & CTX solutions that aim to stop this media buyer nightmare from happening. Which 1 solution do we unanimously agree to use? Privacy sandbox? Hmm well, this only provides solutions for the chrome browser? What about Safari & FireFox, valuable users are found there too. How about UID? Is this yet widely adopted by publishers? Are a significant number of users willing to pro-actively share their emails for this to scale? There are a lot of choices to make and unless there is some form of standardisation, it is unlikely media buyers are all going to use the same solution. This creates a very fragmented ecosystem in the current Web2.0 version of the internet.

OK...How does Web3.0 fit into this picture?

Decentralised networks via Blockchain Technology. Web3.0 is a cookie free space that utilises the Blockchain and proposes a system that protects user data and replaces the usual data exchange with that of cryptocurrencies and other digital assets. What this means is that Web3.0 in its nature prioritises data privacy and compliance. The blockchain is a publicly available ledger to which transactions are recorded and verified in a secure & decentralised way. Decentralised in the manner that this isn't beholden to a single entity and everyone on the blockchain has ownership. In short, the utilisation of the Blockchain technology ensures complete transparency across digital transactions without the need of an intermediary.

How does the Advertising industry benefit?

There are many untapped benefits here which can be of invaluable use. For example, a reduction in Ad Fraud & increased trust due to the fact that transactions are all recorded on a public ledger which aids in a reduction of media wastage.

Web3 allows users to own and control their data and with consent, advertisers can also access data. This leads to more personalised and effective advertising whilst respecting privacy.

There are also benefits for the users as they can be rewarded for engaging with Ads via cryptocurrencies. Brands can also develop new marketing opportunities and drive engagement by creating unique digital assets (called NFTs) that users can either collect or trade.

Is it really that easy & simple?

Yes... and No. There are a few roadblocks that need to be overcome.

• Technological Development - Whilst Web3 networks are still working on increasing its capability to handle billions of users at once, as with most things it needs time time to evolve. The last few years have shown significant improvements in this space with more to come.
• User Adoption - The buzzwords such as Cryptocurrencies, Web3, Blockchain, NFTs - all have been thrown around in recent time, however there is a still a lack of understanding with the masses. With a lack of understanding comes a low adoption rate, as people are going to naturally be hesitant to commit to something they are not yet confident in.
• Existing Competition - The big players in the Web2 space are bound to push back against a new technology that can potentially cause them to lose market share. They will either figure out how to keep users within their Web2.0 space or they will also transition to Web3.0 and begin to incorporate this technology into their existing products.

To summarise, the future of the internet is bright. The concept of Web3.0 presents unique opportunities for all involved - Users & Advertisers alike.

A shift towards the next iteration of the internet has already begun and it is best to begin to embrace this sooner than later.

I'm ready to hope aboard the train going from Web2.0 to Web3.0... Are you?

Contact us today to get started!

‍

Thanks for reading.

Dave Ajumobi

Co-Founder @ Finovation Media