With 2024 being the year of the crumble of third-party cookies, advertising and marketing stakeholders are already on the lookout for the next technological treat that will lead them to all the precious data left behind in the detritus of consumers’ digital meanderings.
And while advertisers and the marketers who cater to themmayormay notbe ready for thefinal cookie to fall,there’s already a new tech snack, er, stack, called theDoughnut, which was introduced to the general public at the Consumer Electronics Show 2024, held at Las Vegas.
Meet theDoughnut
Taking a leaf from its predecessor’s cutesy terminology, theDoughnutis named for its decentralized structure, sans centre as it were, and is said to operate as a means of allowing consumers to control the permissions that they give to brands when it comes to access to their data.
“Doughnutgives users unmatched control over their digital information by introducing a revolutionary decentralised approach to data management. Unlike traditional cookies,Doughnutlets users voluntarily share their information under certain conditions. This is a big change from the current paradigm,” enthuses Advit Sahdev, a digital marketing and performance marketing expert.
Through the use of conditions on ad types, frequency caps, brand categories, media types, and targeting parameters, users can take control of their online advertising experience. Striking an appropriate balance between user privacy and tailored advertising, Doughnut redefines the dynamics of data sharing.
Kumar Awanish, Chief Growth Officer, Cheil India, says that theDoughnuthere is a protocol that aids a user in controlling the permission of their digital assets in a decentralized environment.
According to him, “Doughnutsare created offline and hence provide less transaction costs. Once created, it can be used on-chain to manage permissions. This tends to provide a cost-effective solution which is secure and user-friendly to manage the assets and permissions on the blockchain. This just covers one part of the readiness for a cookie-pocalypse. The upcoming sea change of this era is yet to witness a bunch of tools and techs to work on alternate IDs.”
Behind the Counter
Unlike the ease of a single button click, experts say thatDoughnut's implementation calls for thoughtful consideration and user education. A gradual adoption curve is a result of the transition, which necessitates a change in user behaviour and increased awareness.
“Doughnuthas the potential to be a game-changer in the data privacy space if implemented carefully. Restoring user control fosters transparency and trust while establishing new moral guidelines for the use of digital data. Smart users who understand the value of privacy are likely to embrace this revolutionary approach to online data management as the technology evolves,” notes Sahdev.
However, despite the fanfare at the bakery as it were, it’s going to be a while beforedoughnutsbecome a regular feature in our digital menus. Even as Google ushers users to and through itsprivacy sandbox, as the internet prepares for a post-cookie future, the day of thedoughnutis still a ways away. The fact that industry leaders in online advertising, such as Google and Meta, are not actively rolling it out, only makes it take longer.
“Since these two companies control a large portion of the advertising market, implementing a change without their consent will probably make it take longer for consumers to acceptDoughnut,” says Sahdev, adding, “Nonetheless, there is hope regarding the possible contribution of user-friendly wrappers to the technology's simplification. It is anticipated that these wrappers will facilitate user adoption, which might accelerate the gradual integration ofDoughnutinto common practices.”
