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Where will our data go when cookies disappear? – TechCrunch

Where will our data go when cookies disappear? – TechCrunch
Written by Publishing Team

In January 2020, Google has announced plans to eliminate third-party cookies, dramatically changing digital advertising and the Internet itself. The end of these cookies promises the golden age of digital marketing, as the internet becomes first for privacy.

At first glance, this update appears to be a step in the right direction, and in many ways it is. This does not mean that Google’s motives are pure. Blocking third-party cookies puts Google a step further and strips power away from competitors, further solidifying its control over digital advertising. The company is essentially hindering competitors by restricting access to data under the guise of a privacy-first user-first update.

Blocking cookies will have a lasting impact on many publishers, although not all will be affected equally. Publishers who rely on automated ads served through third-party ad servers, such as Google Ad Manager, will be significantly affected. Ad exchangers, demand-side platforms, and advertisers can access real-time cookie data and then use this information to determine how much to bid on inventory. Without third-party data to increase the value of their inventory, traditional publishers can expect a lower programmed eCPM (expected revenue per thousand impressions), resulting in a significant reduction in ad revenue.

So how can publishers recover their ad revenue? Whatever happens next, digital advertising will never be as simple as it is now, and publishers will soon have to rethink their advertising strategies and implement new solutions that will enable ad monetization.

First-party data will become enormously valuable, and publishers must start figuring out how to leverage and monetize it.

Uniform identifiers are not sustainable in the long term

Publishers will need to be aware of this drastic shift in digital advertising and find alternatives in order to maintain their ad revenue. One potential path is a unified identifier solution, where publishers aggregate first-party data together in an anonymized manner, creating an identifier that can identify users across the supply chain. For example, this “no-cookie” solution could use anonymous email addresses to replace third-party data.

Many companies are already building standardized identity programs, such as TradeDesk’s Uniform Identifier 2.0. Prebid, an open source bidding platform, has announced that it will support it. Unified ID 2.0 is one among the many identifiers available on the market, each of which differs slightly in functionality, implementation, and privacy.

Google recently announced its own form of Uniform Identifier, which helps publishers who use Google Ad Manager. Through publisher-provided identifiers (PPIDs), publishers can share first-party data in an anonymized manner with external bidders. This appears to be Google’s compromise of privacy protection while not alienating advertisers and publishers. Publishers will, of course, have to hand over first-party data, so Google is once again left with plenty of data to use.

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Publishing Team