It’s no secret that Google will phase out 3rd-party browser cookies in Q1 2024, and the industry is still exp…
It’s no secret that Google will phase out 3rd-party browser cookies in Q1 2024, and the industry is still exploring ways to improve previous solutions to raise publisher’s revenue. Despite initial rejection owing to difficulties, Google Topics has become a popular solution.
An increased focus on first-party data, business partnerships, and less intrusive targeting methods are some of the interesting trends that have come out of this innovation. In due time, publishers will have to accept that targeting will become less effective and find new ways to do things.
Seller-Defined Audiences (SDA)
The Interactive Advertising Bureau (IAB) came up with the idea of Seller-Defined Audiences, which has been getting a lot of consideration. Google recognized it a few months ago. It looks like a good idea, but we still don’t know if it can completely replace cookies or if a mix of different solutions will be needed in the cookie-less age.
First-party data can be collected in a lot of different ways, like collecting login information such as age and sex, seeing what content someone browses (like in contextual ads), dividing them into groups based on their interests, and even deciding which viewability pool they belong to. This means that SDA can be useful for many types of publishers, not just those with an email database.
Another option is contextual targeting, which is like a phoenix in the ad market: it was once famous but lost steam when better targeting methods came out, but it’s now gaining popularity again. This method doesn’t use user-specific data to show relevant ads. Instead, it relies on the content itself to protect user privacy. Using keywords and sentences on a web page, contextual targeting makes sure that ads stay relevant to the user without using cookies.
This change is good for the UX because the ads users see are now more appropriate, which means they can be seen more easily. Research says that about 69% of consumers are more interested in ads and other content that is relevant to their situation.
Since browser cookies are about to go away, which could hurt programmatic income, publishers are now focusing on contextual targeting. A study by MarketsandMarkets says that by 2023, contextual ads will be worth $297.68 billion
Another study also shows that ads that are relevant to the user’s situation get 43% more neural engagement and are 2.2 times more likely to be remembered than other ads.
Publishers should think about the page’s content when it comes to contextual marketing. They can index their sites first and then send buyers the relevant data. We know from the past, though, that this can also make editorial choices less good.
Publishers need page activity so they can send this information to buyers without keeping it themselves. First-party data is also integrated in the header bidding wrapper, which lets relevant information be taken from the bid request process and sent.
Making Use of Universal IDs
According to a study, a big chunk of consumers don’t dislike ads, they’re worried about the privacy risks that come with collecting data. A study by Clutch found that 51% of people would rather see ads from brands they already trust.
This result shows that the issue is not with gathering data itself, but with the way it is done. In the end, personalized ads can be good for both marketing and customers. This is where Universal IDs come in.
Universal IDs are shared names that make it easier for everyone in the ad tech supply chain to find each other without cookies. Universal IDs make sure that users are correctly identified across multiple devices by using deterministic matching. Trade Desk’s Unified ID, DigiTrust by IAB, ID5, Publisher Common ID, and other ideas have been put forward as possible options for Universal ID.
They are also pretty simple to add to prebid, and sometimes hashed login data can be added to them.
A Fascinating shift in iOS vs Android CPM might work
The difference in CPM rates between iOS and Android devices is an interesting part of how the world is changing.
Apple released Intelligent Tracking Prevention (ITP 2.1) in 2019, which has a number of new features. After every seven days, Safari deletes most first-party cookies and stops all third-party cookies automatically. Because of this, it is very hard to do device tracking and long-tail measurement. Because of more targeted ads, iOS users only got a small share of the budget. As a result, marketers often pay half or even less of what they would for an Android user.
The difference in CPMs between iOS and Android has become interesting since Google recently decided to do the same thing and devalue cookies in Chrome. This comes after the rise of identity solutions.
According to traffic data, Chrome-using Android devices have higher CPMs. However, iOS and Android CPMs have increased since January, the lowest month of the year. Android CPMs have increased by 30%, whereas iOS CPMs have increased by approximately 60%. Based on filtered US traffic, these data suggest how the two platforms are changing and may be what merchants have been yearning for.
Find out more about this data, look into opportunities around the world, learn about other bidders, compare your success, and get planning-useful insights.
Differential Privacy, Another Alternative
Another alternative for keeping user data safe across platforms is differential privacy. This is a way of doing statistics that focuses on putting together sets of data instead of collecting information about each person.
Think about a platform for publishers that gives people personalized ads based on what they like and how they act. In the past, this site used third-party cookies to keep track of what users did online and show them more relevant ads. However, worries about user privacy have led the company to look into other options
In response, this new tool for publishers has added differential privacy as a possible answer. The platform now uses statistics instead of keeping track of and saving information about each individual user. Advertisers receive lots of information about their campaigns, like how many times their ads were seen and clicked.
You only get broad information like “70% of users viewed the ad” and “10% of viewers clicked on the ad” if your ad reaches 100,000 people. Marketers can assess campaign performance without viewing user data.
With differential privacy, this is done by adding controlled noise to the data before it is sent to marketers. The data is anonymized, so users’ ad interactions cannot be retrieved. Tech giants like Google and Apple have embraced this privacy approach from Microsoft. It keeps user data safe while still letting marketers see how well their ads are doing overall.
Alphabet Inc. has started the Privacy Sandbox as a strong and innovative way to get rid of cookies from Google. Because of their reliance on third-party cookies, Google wants to lead the cookieless advertising revolution.
There are several projects in the Google Privacy Sandbox that try to make it possible to target users without using cookies or cross-site targeting. Not only does Google have ideas for these answers; other partners have also helped with them. FLEDGE and Topics API are two of the most well-known projects in the Sandbox.
The FLEDGE API, now Protected Audience API, helps you establish and retarget audiences without cookies. The Topics API offers interest-based advertising without tracking browser activity. Both projects are, however, still being talked about and planned.
Project ReArc was started by the IAB Tech Lab in 2020. Its main goal is to build a system for personalizing ads that puts user privacy first.
It was already said that the main goal of Project ReArc was to set technical guidelines for a Universal ID. The tech lab thinks that when third-party cookies and mobile IDs are taken away, there will be a “default future state of digital media” in which user data is completely anonymous and can’t be linked to third-party providers.
Advertising that can be directly addressed will now rely mostly on first-party data, like people who voluntarily give their email addresses.
The IAB Tech Lab wants to make sure the following things happen by creating strong technical standards and rules for putting in place a universal identifier:
- Users always have full power over their data, and it will never be taken away from them without their permission.
- The identity will use strong encryption to stop users from figuring out who it is and doing reverse engineering.
- Brands and publishers will check third-party sellers on a regular basis to make sure they don’t keep track of customer information without permission.
- As long as they follow the above rules, third-party vendors can gather data on behalf of first parties.
Publisher cohorts aren’t made by looking at what sites people have visited across domains. Instead, they are made by putting customers into groups based on things they have in common on a publisher’s website. These groups are possible because publishers interact one-on-one with their audience, which helps them understand their users. Publishers employ first-party data from user behaviors, hobbies, assessments, viewing habits, submissions, and more, not demographics.
Publishers can create big, highly targeted audiences with first-party data since they know their audiences 100%. Marketers can deliver appropriate ads to these groups, and publishers can switch consumer groups at any moment.
Marketers can also combine their own first-party data for verified users with these groups in a way that doesn’t violate privacy rules. This lets them target crowds even more precisely and without using third-party cookies.
Due to the discussion regarding publisher cohorts and first-party data platforms, publishers’ most essential question is: What can I do?
Publisher’s First Party Data Platforms
Large publishers aim to develop first-party data platforms, but small and medium-sized publishers may not be able to. These platforms include a number of ad tech tools and sites for audience data.
Insider Inc.’s SÁGA is an example of an ad tech tool that puts first-party data first. Business Insider, Future plc, and Vox Media have developed businesses around first-party data by packaging their approved audiences for advertisers. Because third-party data is becoming less useful, these sites offer a way to protect user’s privacy.
Future Predictions for Impact of Cookieless Browsers on Publishers
As we look to the future, we can see that advertising is changing in big ways. It will depend on how advertisers retarget, such as buying similar audiences or purchasing ad placements next to related content.
Facebook and Google Ads, with greater first-party data, may outperform publishers with their own followers. The market will depend on one main option, like with third-party cookies. Or will there be a number of different ones to choose from?
Also, more publishers may switch from the slower Prebid Client, which has more third-party cookies, to the faster Prebid Server.
As the business gets ready for a world without cookies, these changes are shaping its future.
Both supply and demand sides of programmatic advertising perceive difficulties and opportunities as browser cookies expire.
Concerns about privacy need to be carefully thought through, and it’s important to look for other answers. Finding the best balance between making money and providing good content is important for everyone involved.
With AI and machine learning, companies can use these changes to their advantage and give customers a better experience. Publishers can increase user engagement and happiness by giving users ads that really speak to them. Relevant contextual advertising in trusted sources protects brands’ image and target audience from harmful content.