Yahoo to Tailor Ads with AI as Third-Party Cookies Phase Out

By utilising AI and data analysis techniques, the platform can see its customers offer dynamic, tailored adverts for leads in real-time
Yahoo has launched Yahoo Creative, which will give customers the ability to use AI to develop dynamic ads that adapt to user habbits

Amid a changing time for the world of online adverts, Yahoo Advertising has announced a forward looking solution that combines two of the biggest drivers of change in the industry - AI and user personalisation. 

The result is Yahoo Creative, an AI-powered advertising solution designed to revolutionise how brands tailor their adverts online. 

To do this, Yahoo Creative brings the same kind of high-tech and data lead approach used in automated ad buying to the design and messaging of the ads themselves. 

Built on Yahoo's extensive network of direct, consensual relationships with consumers, this approach allows Yahoo Creative to offer its customers personalised, targeted advertising while respecting user privacy and adapting to evolving data protection regulations.

AI in advertising

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By utilising AI and data analysis techniques, the platform can see its customers offer dynamic, tailored adverts for leads in real-time.

The result of this plan is things like different elements of the adverts, like headlines and image placements changing according to the signals the AI is getting and interpreted about the individual user, such as a person’s shopping habits or previous purchases.

This innovative tool comes at a crucial time as the digital advertising industry braces for significant changes in user tracking capabilities. 

"In today's cookie-less landscape, dynamic, relevant, and engaging creative is critical for campaign success,” says Elizabeth Herbst-Brady, Chief Revenue Officer at Yahoo. “Yahoo Creative represents a major technological advancement, combining AI, data, and human expertise to usher in a new era of creative for advertisers."

Cookies out, AI in

The launch of Yahoo Creative is particularly timely given Google's impending phase-out of third-party cookies, due in Q4 of 2024.

These small text files, traditionally used to track user behaviour across websites, have been a cornerstone of targeted advertising for years. However, growing privacy concerns have led to their gradual elimination, forcing advertisers to seek alternative methods for audience targeting and personalisation.

“Yahoo Creative represents a key advancement in creative within our industry,” said Tony Gemma, VP and Head of Yahoo Creative. “By bringing together Innervate’s cutting-edge technology, and integrating our robust data and creative services, Yahoo Creative is transforming the potential for creativity, and delivering superior results for advertisers.”

Yahoo's solution addresses this challenge by utilising its own first-party data from over 205 million logged-in users in the US alone. This approach allows for precise targeting without relying on third-party cookies.

The solution has already garnered interest from major brands and agencies. Marie Lee, VP of Integrated Marketing and Media Planning at Princess Cruises, noted: "The combination of Yahoo's advanced technology and targeting with Yahoo Creative is a powerful tool as we continue to harness the power of digital marketing to drive demand to our iconic brand."

As the advertising industry navigates the post-cookie era, solutions like Yahoo Creative may become increasingly vital. By combining AI capabilities with robust first-party data, Yahoo is positioning itself at the forefront of this transition, offering advertisers a way to maintain personalisation and effectiveness in their campaigns without relying on soon-to-be-obsolete tracking methods.

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