According to a survey called “Advertising Expenditures in Japan” conducted by Dentsu Inc. (statistics on advertising expenses spent in Japan in one year, the survey has been conducted since 1947), 2019 was the first time since the start of the survey that This was the year in which “Internet advertising expenditures” exceeded television media advertising expenditures (terrestrial and satellite broadcasting).
This is the same trend in the latest survey results for fiscal year 2020 (released in 2021), and the total advertising expenses spent by Japanese companies in fiscal year 2020 was 6,159.4 billion yen, due to the impact of the coronavirus pandemic. This is a drop of 88.8% compared to the previous year.
Of this, the so-called “four major media advertising expenditures” – newspapers, magazines, television (including satellite media-related), and radio – totaled 2,253.6 billion yen, an even greater drop of 86.4% from the previous year, marking the sixth consecutive year of decline. In contrast, Internet advertising expenses amounted to 2,229 billion yen (105.9% compared to the previous year), and have continued to grow consistently since the survey began in 1996.
In other words, Internet advertising expenditures have become comparable to advertising expenditures for the four major media, and there is even a possibility that they will turn around in 2021.However, regarding the 2020 survey, the number of people refraining from going out and traveling during the coronavirus pandemic is increasing. It is thought that the increased demand from people staying at home is also pushing up Internet advertising costs.
Not only has advertising related to sales such as delivery and online shopping increased significantly, but DX (digital transformation) is rapidly accelerating in all aspects of business and social life, such as online meetings, online events, webinars, remote work, and cashless payments. There is no doubt that this was a major factor.
Also, we cannot overlook the fact that one technology is supporting this expansion of Internet advertising.
That’s tracking technology.
Tracking refers to automatically tracking and analyzing user behavior in order to obtain user information, and this is a technology that cannot be achieved with traditional media such as newspapers and television.
When developing marketing through Internet advertising, by making full use of tracking, you will be able to increase marketing effectiveness and run the PDCA cycle to formulate more effective measures.
Indeed, tracking is a technology that can be called the “key point” of Internet advertising.
Tracking has become an essential element for web marketing, especially in the BtoB field.
On the other hand, in recent years, there has been a movement to regulate or block tracking on the grounds that it “infringes on privacy.”
Therefore, in this article, we will explain the overview and benefits of tracking, the mechanism of tracking using cookies, and other tracking technologies. Furthermore, we will explain the mechanism by which tracking can be performed and how to refuse it for each device.
What does tracking mean? What is its use?
Three meanings of tracking
The literal translation of the English word “tracking” into Japanese is “tracking,” “following,” or “trajectory.” Derived from this, the word is now often used with different meanings in the following three industries.
Tracking in the logistics industry
Tracking in the field of logistics is used to track the status of packages when they are delivered and to identify the current location. Recently, it has also been used by delivery companies and other services to notify users of delivery status via email.
Tracking in the IT industry
The word tracking is also used in the IT industry, but it often refers to the collection and monitoring of logs regarding program operation status and data trends, mainly during system development.
Tracking in the marketing industry
When developing
digital marketing
measures such as web advertising, tracking and analyzing users’ movements on the web in order to efficiently and effectively appeal to
users
with information that matches their needs.
Although this term is used in many other fields, such as the medical industry, I would like to proceed with this article on the assumption that tracking is a term used in the
marketing
industry mentioned above.
In particular, this system automatically obtains and analyzes user data over the Internet, rather than the conventional tracking method called “key code” in which numbers and letters are embedded in printed matter. I would like to explain about tracking.
Tracking uses
So, how can tracking be used in marketing?
There are various possible uses, but the two main uses are identifying user trends using access information and measuring effectiveness, as listed below.
Acquisition and analysis of access information
By using tracking, it is possible to identify the pages a user views on a website and obtain information such as the length of time spent on the website.
By analyzing access using this information, it is possible to infer user preferences and interests, which can be linked to appropriate marketing measures.
Measuring the effectiveness of content by measuring conversions
Another use of tracking is to measure conversions such as the number of clicks and viewing time for content distributed on the web. By doing this, the effectiveness of the distribution can be measured. Tracking allows you to understand which ads are contributing to
, which can be used to improve content to increase sales.
What is a typical tracking technology cookie?
What are cookies for?
Cookies
are an indispensable part of understanding tracking.
A cookie is a file that temporarily records information about a site visitor in the browser.In short, it can be used to “enable smooth website browsing, and provide advertisements optimized for that user.” It can be said that it is a system that enables the display of
This is not something that was created solely out of corporate needs. What’s more, cookies aren’t even a technology developed for tracking in the first place.
Let me explain Cookie’s background in a little more detail.
HTTP, a protocol for exchanging web information, has the characteristic of being stateless, meaning that it does not reflect past data and always returns the same response. Therefore, for example, in the early days of the Internet, users had to enter their ID and password each time they logged in to access membership-based websites until cookies were put into practical use.
This required users to enter information from the keyboard each time they logged in, which was a tedious process, and there were many security problems, such as reusing the same password that was easy to guess and information leaks caused by copying and pasting text.
Therefore, cookies were developed as a protocol to manage state between web servers and browsers.
This allows servers and browsers to share information using cookies as a simple common package, allowing them to know each other’s current status.
When a user visits a website, a cookie is issued to the browser from the web server and stored, and the cookie data is used as common information between the server and browser for a certain period of time from the next time.
In the above example of a membership website, the member’s ID and password are recorded on the web browser as login information using cookies, and the server side receives this information so that when the same web page is viewed again, the member’s status can be determined. It will be displayed.
Nowadays, it is commonplace for shopping cart information from e-commerce sites to be recorded in web browsers as cookie information, and it is also used to maintain logins on Twitter, Facebook, etc., making it more convenient for users. It also helps a lot in improving.
On the other hand, once it became clear that cookie technology could be used to obtain user browsing history and behavior history, it was increasingly used in the marketing field. As a result, the idea that “tracking = tracking of a user’s Internet behavior history using cookies” became commonplace.
Difference between cookies and cache
Let’s also check the difference between “cache” and ”
cache
“, which is often confused with cookies.
Both cache and cookies seem to have similar functions in that they are data temporarily stored in a web browser, but cookies retain user information such as IDs and passwords, whereas cache displays information. It differs greatly in that it stores information about the web page itself, such as the page’s layout, images, and fonts.
This is unthinkable in today’s world of high-speed communication lines, but in the early days of the Internet, when lines were slow, it often took tens of seconds just to display an image. Moreover, in the days before caching technology, images would have to be loaded from the server each time the site was changed, so it would take the same amount of time to visit the same site again.
Cache is the solution to this problem.
By storing the visual information of a site you have visited as a cache on your device, you can display the site using the data on your device when you revisit, greatly reducing the display speed.
As an aside, cache technology is not limited to displaying websites on the Internet, but is used in a wide variety of situations as a virtual data storage location on computers.
For example, it is used to cache frequently used data on hard disks to speed up access, and it is used to speed up the processing speed of the OS. It has become a technology.
Cookie type
Although we don’t usually think about it, there are two types of cookies. They are “first party cookies” and “third party cookies.”
Let’s take a look at the features and uses of each.
First party cookies
Cookies issued directly by the domain of the website visited by the user are called first-party cookies.
For example, when you access a membership site, cookies related to login information issued by that site to store IDs, passwords, etc. are first-party cookies because they are issued directly from the site’s domain.
In addition, it is used to store the browsing history of visited sites and, in the case of e-commerce and mail order sites, product information in the cart, etc., and is basically used only within a single site. It’s a first party cookie.
Third party cookies
Third-party cookies are cookies that are issued from a website other than the one visited by the user, that is, from a third-party domain.
For example, after viewing the website of a food manufacturer called Company A, you then visit the website of a travel agency called B, which is a completely different category, and yet a banner ad related to the food products of Company A appears on the website. Everyone has had this experience. This is a third-party cookie.
In this way, if a banner ad from a site you previously visited is displayed when you visit a different site, the ad is being served from a domain other than that site’s domain, and the cookies issued here are sent by a third party. It’s a cookie.
In addition to serving ads, third-party cookies are used to collect a variety of tracking data that can be used for marketing, such as measuring the number of people who go from one site A to another site B.
However, because third-party cookies have the ability to collect user access data across multiple sites, some people may feel uncomfortable, as if they are being chased by advertisements.
In fact, there is a debate in the United States that third-party cookies should be regulated from the perspective of privacy protection, and there is a movement in Japan to follow suit.
Additionally, platform vendors are already developing technology for this purpose.
For example, Safari, the browser built into Apple’s products, has gradually been able to significantly limit, disable, or delete third-party cookies using a technology called IntelligentTrackingPrevention (ITP).
ITP has already been updated multiple times, and regulations have been tightened with each update, but the version of ITP released in March 2020 now blocks all third-party cookies without exception. There is.
Additionally, Google, which provides Google Chrome, announced in January 2020 that it would discontinue support for third-party cookies in its Chrome browser. At the same time, it has been announced that efforts are being made to develop a new tracking method called “PrivacySandbox”, which is a technology that can handle data while protecting privacy, so the tracking method itself is being rejected. Although this does not mean that there are no third-party cookies, the movement to regulate third-party cookies is likely to continue, centered on platform vendors.
Tracking technologies other than cookies
I have explained cookies so far, but there are tracking technologies other than cookies, and they are often used in combination. Let’s take a look at tracking mechanisms other than cookies.
browser fingerprint
A fingerprint is a “fingerprint.” In the IT world, a “fingerprint” refers to data or technology that identifies the device a user is using.
Browser fingerprinting is a technology that identifies users by hashing information obtained through the browser.
The information identified by browser fingerprints can be broadly divided into three types: However, since the actual content will differ depending on the technology used, etc., it should be noted that what is introduced here is only a representative example.
- Information that can be identified by browser fingerprinting
◇Information about the software used on the device, such as the OS being used and the language and version of the browser settings ◇Information about the specifications of the device, such as CPU information, number of speakers and microphones, and screen size ◇IP address and Information related to the device’s network, such as the URL of the page you were just looking at
As you can see, the information identified by browser fingerprints is information about the device (browser) and does not identify individuals.
Still, as regulations on third-party cookies have become stricter in recent years, fingerprinting has gained attention as an alternative to cookies for tracking.
Tracking performed by smartphone apps
When installing an app on a smartphone, permission to access various device information such as contacts and location information is often requested. Users can be tracked at any time via a smartphone app based on the information they have been given access to.
Advertising ID (advertising identifier)
A specific ID for identifying a mobile terminal is called an advertising ID (advertising identifier).
Advertising IDs are generated for each platform, with Apple’s iOS devices using an advertising ID called “IDFA,” and Android devices using an advertising ID called “AAID.” These two types of IDs are common between apps, but they are only allowed to be used for advertising distribution.
By using advertising IDs for tracking, information can be tracked on a device-by-device basis, making it possible to implement advertising strategies with detailed user settings.
How to measure tracking
Also, the measurement methods used for tracking can be broadly divided into two types: “direct measurement” and “redirect measurement”, so be sure to keep this in mind as well.
Direct measurement
Direct measurement is a measurement method that counts as one click each time a measurement tag placed on a website page is read.
This is the measurement method used by Google’s services Google Analytics and AdWords. Unlike the redirect measurement described below, there is no need to prepare a server, so the advantages are that costs can be kept down and there are fewer problems caused by external factors.
On the other hand, the disadvantages are that there may be a time lag because counting is done after the tags are read, and that it takes a lot of time to install measurement tags on all the pages you want to count.
Redirect measurement
Redirect measurement is a measurement method in which a tracking server is set up before transitioning to a landing page, and each click that goes through this is counted as one click.
While the advantage is that there is little time lag, there are also disadvantages, such as the fact that tracking is done via a server, so if there is a problem with the tracking server, it may become impossible to measure, and the cost of setting up the server is high.
It is not true that one of these two measurement methods is better, but rather that it is desirable to choose one according to the purpose of the site being operated and the status of the operating medium.
Benefits of using tracking
Next, let’s take a look at the benefits of tracking from the user’s and corporate/web marketing perspectives.
Benefits from the user’s perspective
There are two main benefits to users from tracking:
Improved convenience
As mentioned above, it is tedious and stressful for users to have to enter their login information every time they visit a website. By using first-party cookies, you can eliminate this stress by automatically logging in.
Display ads that match your interests
Another benefit is that the advertisements displayed while browsing the Internet can provide useful information if they reflect the user’s own interests. It may seem annoying if it appears frequently, but tracking technology basically displays advertisements that match your hobbies and preferences, so you can get information about better products and services that you didn’t know about. There is also the aspect of it being an opportunity.
Advantages from the management perspective
On the other hand, there are two benefits from the perspective of companies and web marketing operators:
useful for marketing
By using tracking technologies such as cookies, companies can easily obtain detailed information such as what pages users view and what actions they take when visiting the sites they manage. You can. Marketing using website analysis tools such as Google Analytics is also supported by tracking technology.
Can deliver retargeting ads
Retargeting
ads, which allow a company to deliver its ads to users who are visiting other sites and have a high degree of match with the company, are realized through tracking. Tracking is especially beneficial for companies that conduct marketing based on detailed segmentation such as age, gender, and purchasing trends.
Disadvantages of using tracking
On the other hand, tracking also has its disadvantages, which you should keep in mind.
As with the merits, let’s look at it from the perspective of users, companies, and web marketing.
Disadvantages from the user’s perspective
Tracking has two disadvantages for users:
there is a security risk
When a company or organization shares a computer, there is a possibility that information stored in cookies could be stolen by someone other than the user and used fraudulently, creating a major security risk.
The discomfort of having one’s actions monitored
Tracking is convenient, but since advertisements and content are always displayed based on one’s own behavioral data, it can be unpleasant to feel as if one’s actions are being monitored. For this reason, it is necessary to take measures such as blocking tracking from the web browser settings and periodically deleting cookie information, as described below.
Disadvantages from the management perspective
There are two disadvantages of tracking that affect companies and web marketing companies, but both can be said to be the flip side of the disadvantages for users.
Increased security risk
Session hijacking is a security risk that you need to be aware of when using tracking.
A session is a series of communication processes between a web server and a browser. Session hijacking is a general term for cyber attacks that steal identification information (session ID) related to this communication and impersonate the user to gain unauthorized access.
If a session ID is stolen, not only can it be impersonated, but it can also lead to inferring interactions between the user and the server, leading to the leaking of personal information such as addresses, names, and credit card numbers on the website.
Excessive retargeting advertising causes backlash
Many companies use retargeting ads that use third-party cookies because they have the highest response rate among display ads. However, from the user’s point of view, it is a method that can cause unpleasant feelings, such as feeling persistent or being watched. While the market for Internet advertising is growing, the number of users who are fed up with excessive advertisements is also increasing. It seems like it’s time to move away from our reliance on third-party cookies.
What is the setting to refuse tracking?
Tips for using tracking
The trick for users to utilize tracking is to prevent excessive tracking and maintain a balance with comfort.
If used properly, tracking can improve convenience for Internet users and provide marketing benefits for advertisers. However, excessive tracking can also become a breeding ground for unauthorized use such as leakage of personal information and identity theft.
There are several ways users can opt out or control tracking:
Settings to refuse tracking
Let’s explain the settings for refusing tracking for each device.
Set privacy settings for each device
You can set privacy settings on each device and browser you use, such as a PC or smartphone, so you can control tracking by turning on Do Not Track.
Introduction of tools
There are many tools available today to block ads. Some of these tools have the ability to block tracking as well as hide ads, so using this is also useful for refusing tracking.
However, although it is an effective means of controlling tracking, it is important to be careful as there are many tools available and it is necessary to carefully select reliable tools.
I have explained tracking above, but in order for companies to fully utilize the data obtained through tracking in marketing, it is important to clearly clarify the purpose in advance. For example, a setting such as “To check the inflow route of converted users” can be considered.
On the other hand, users will be able to better control tracking by understanding how to configure it to protect privacy and improve security without sacrificing the comfort and convenience of tracking.
summary
- Now that Internet advertising costs have exceeded the advertising costs of the four major media, web marketing is increasingly making active use of tracking to accurately understand user behavior and use it to improve strategies and advertising. It has become important. Tracking can be said to be an essential element when developing web marketing, especially in the BtoB field.
- By utilizing tracking, users can reduce stress by automating and simplifying information input, and can display advertisements that match their hobbies and preferences, allowing them to discover better products and services that they did not know about. There are benefits such as the opportunity to obtain information about On the other hand, there are also disadvantages such as increased security risks for both users and companies, and the possibility of personal information leaks.
- Tracking has both advantages and disadvantages, but companies should carefully plan how to balance them as a pillar of their marketing measures. However, users also need to understand its role and mechanism and take appropriate measures. Always using tracking while responding to the settings related to privacy and app permissions must lead to more comfortable and safer use of the Internet.