As advertisers phase out cookies, what’s the alternative?

[Commentary] What will become of the humble cookie? The tiny data files sent from websites to browsers have come under much scrutiny recently, particularly from privacy advocates and policy makers.

Even advertisers agree that the web needs a viable alternative that balances privacy concerns with marketers’ desire to target users effectively. Many industry leaders have grimly declared “the death of the cookie” sometime within the next few years. What’s the cause of their cynicism? Here are some of the most common critiques:

• Privacy concerns: Critics argue that third-parties collect and store excessive data on consumers, often without their knowledge. Consumers agree -- 57 percent of Internet users are either “concerned” or “very concerned” about their online privacy, according to a recent study by analytics firm Annalect. Law makers are concerned as well, and have tasked industry and consumer groups with defining a browser-based “Do Not Track” standard that would allow users to easily opt out of tracking.
• Limited reach: Cookies aren’t effective in mobile environments (third-party cookies are blocked by default on iOS devices, for instance). This can be limiting for advertisers, given that we spend more time on mobile devices than we do laptops and PCs.
• Poor cross-device tracking: Cookies can’t provide cross-device targeting capabilities (i.e. targeting the same user across mobile and desktop devices).

[Wedlake is an analyst at Thomvest Ventures, focusing on advertising technology]