In this first blog on the topic, we clearly explained the background, overview, and importance. This time, we want to delve into the industry-specific efforts in more detail.

2.Industrial Initiatives

As browsers continue to default-block 3rd-party cookies, advertising platforms/ASPs and ad performance measurement systems are advancing tracking measures.

Advertising Platforms:
1. Meta: About two years ago, Meta released a method called the Conversion API (CAPI), which allows for the measurement of Meta ad conversions through the server without using cookies. Implementing this can lead to improved conversion measurement accuracy and ad performance optimization. However, it requires implementation by someone with specialized knowledge, such as an engineer, so it costs more in terms of labor and expenses compared to using cookies. Therefore, based on our experience, many advertising agencies and advertisers do not use CAPI (often due to lack of awareness).

2. Google: Like other advertising platforms, Google used to write click IDs to cookies with tags set for conversion measurement and then send the conversion data. Three years ago, Google released a method called Enhanced Conversions, where the tag hashes personal information when the user converts and then sends the conversion data. The advantages and disadvantages are similar to those of Meta, so many advertising agencies and advertisers (often due to lack of awareness) do not use Enhanced Conversions.

ASP (Affiliate Service Provider):
Major ASPs are progressing with measures against the blocking of 3rd-party cookies by browsers, through device fingerprinting and transitioning to 1st-party cookies. Affiliates, who receive commission-based payments upon conversion occurrences, might critically assess whether an ASP is properly equipped to handle the complete block of 3rd-party cookies by Chrome.

Ad Performance Measurement Systems:
Most ad performance systems, represented by AdEbis, utilize first-party cookies and are taking measures to measure data within the restrictions of ITP (Intelligent Tracking Prevention).

Excluding ASPs, the situation seems more like a lack of effort on the advertising platform side due to the engineering labor and costs involved in adapting to a cookieless environment. “Advertising agencies find it bothersome to deal with” → “As a result, advertisers are unaware of the necessary measures.” However, from the latter half of this year to the first half of next year, when Chrome completely blocks 3rd-party cookies, the vast number of Chrome users means that not changing the current situation could lead to significantly negative impacts such as inaccurate conversion measurement, lower remarketing precision, and reduced accuracy in ad optimization (machine learning). We hope this blog post will prompt all advertisers to take timely action!

Masaki “Mark” Iino
Founder & CEO
SOPHOLA, Inc