Home The Sell Sider CNAME Will Face The Same Fate As Third-Party Cookies. Then What?

CNAME Will Face The Same Fate As Third-Party Cookies. Then What?

SHARE:
Kevin Mullen, chief product officer at Roq.ad

The Sell Sider” is a column written by the sell side of the digital media community.

Today’s column is written by Kevin Mullen, chief product officer at Roq.ad.

Update 1/19/23: This column originally named a company in a hypothetical example about how CNAME is used for identity resolution. Since that company doesn’t actually use CNAME, that company name has been updated to “IDco.”

We know the third-party cookie apocalypse is coming. Good. Cookie syncs are a pain.

One alternative approach is called domain sharing or CNAME access. Some of the largest, most well-established “universal identity” providers are relying on CNAME to magically transform a third-party cookie on a user’s browser into a first-party cookie.

CNAME was originally built to support single sign-on (SSO) tools, such as OneLogin and Okta, to allow a user to log in to multiple systems automatically. Until a couple of years ago, they were the only ones that used CNAME.

If you work for a company that supports SSO, you might notice that your initial login screen is actually on a page listed as “salesforce.okta.com.” That way, Okta can get full access to the browser and is able to log in the user to Salesforce securely. 

But with the rise of universal ID providers, there has been growing recognition that CNAME could fill the gap created by the loss of third-party cookies as a way to distribute those “universal IDs.” 

There’s a problem, though: CNAME access is likely to be deprecated, and it might happen quite soon – maybe even before third-party cookies are deprecated.

If CNAME access and third-party cookies go away, identity companies – and most of their clients and partners – are going to get hurt. 

Badly.

The DL on CNAME

How exactly is CNAME access (aka domain sharing) used for identity resolution? 

Let’s say I’m the head of digital marketing at sfgate.com and I need identity resolution to serve relevant ads, so I go with an identity provider I’ll call IDco.
  1. I give IDco access with a redirect.
  2. I redirect everyone who lands on my site “idco.sfgate.com.” This gives IDco first-party cookie access.
  3. IDco can now read and write cookies because it “owns” the domain. (IDco can even read the third-party cookie they dropped six weeks ago.)
  4. IDco can read and write and distribute its IDco ID to sfgate.com.
  5. My site (sfgate.com) can continue to use the IDco ID in the bidstream.

Everyone is happy, right? 

But what some folks call “CNAME access,” other folks call “CNAME cloaking.”

WebKit, an open source web content engine that builds browser tools (and is the basis for Apple’s Safari browser), says they’ve built a way to give single sign-on providers access to the cookie store without using CNAME.

The new method uses third-party cookies instead, but only if the user is engaging with their login tool via the iframe that’s on that page.

WebKit’s proposal effectively removes the need for CNAME in the context of SSO. Why? Ask yourself: Who are the only other people using CNAME? 

Ad tech companies! Specifically, universal identity providers.

If the browser makers no longer need CNAME for SSO, do you think they’ll allow ad tech vendors to use it for their own purposes?

Actually, we don’t have to wonder, because Mozilla and Google have already told us they intend to close loopholes that allow the use of CNAME in passing universal IDs.

A rocky road ahead

Unless identity providers start making plans and building new features now, they’re in trouble. If there is no way to distribute those universal IDs to publishers, they will start slowly losing their universal ID audience as cookies churn and people get new devices.

And with no way to distribute the universal IDs to the new devices, the data pool passing through the bidstream will fall, too, generating less value for DSPs and advertisers … and, eventually, collapsing all of those universal identity players. 

Their publisher partners must succeed at getting email addresses directly if they want to survive. But most publishers won’t be able to get the logins and the emails they need, at least not at scale.

Outside of probabilistically matching IDs using machine learning, no one has an answer for what happens if (or, rather, when) CNAME goes away. That is why the time to start making plans for third-party cookie-less and CNAME-less identity resolution is now.

Follow Roq.ad (@Roqad_official) and AdExchanger (@adexchanger) on Twitter.

For more articles featuring Kevin Mullen, click here.

Must Read

Why Major UK Publishers Are Finally Joining Forces To Curate Ad Inventory

Atria’s collective approach is a response to growing monetization challenges and the need to protect the value of human journalism in the AI era.

Toronto Canada pride parade includes a crowd waving pride flags

Ad Performance And Politics Steered Brand Dollars Away From LGBTQ+ Communities – But The Pendulum Will Swing Back

The current administration has discouraged many marketers and organizations from showing support for the LGBTQ+ community, including during Pride month.

How AI Can Enhance Content Without Generating It

As much as consumers complain about AI-generated content, advertising experts say AI still has an important place in video creation and production, including for ads. But using AI in content without turning off consumers is a tricky dance.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

How Tovala Banks On Subscriptions And Incrementality – But Not Ads – To Profit From Its Oven

Smart TVs, refrigerators and other home appliances may pester you with marketing, but at least the hardware is cheap. Another startup taking a different approach to the same theory is Tovala, which was founded in 2015 and combines a standalone countertop oven with a weekly meal kit subscription.

Shopify Wades Deeper Into Advertising, But Not Ad Tech

Shopify is slowly but surely making its way into the ads business. But the ecommerce leader maintains its laissez-faire approach to ad monetization.

Advertisers Say They Need More Data From Netflix

Netflix touts sharper targeting, but buyers say its black-box approach – especially the lack of usable IP data – is blunting measurement and quietly pushing performance-driven spend elsewhere.