The elimination of third-party cookies is transforming digital advertising, necessitating changes in how advertisers target and analyze campaigns, as observed by analyst Evelyn Mitchell-Wolf. However, certain trends like direct programmatic transactions and increasing ad spend on connected TV (CTV) are expected to continue.
Changes Due to Cookie Deprecation:
Loss of Historical Benchmarks: With cookies phased out, traditional methods of ad targeting and performance measurement become obsolete. Advertisers need new strategies to track and compare campaign effectiveness.
Consolidation of Identity Providers: The market, currently hosting over 110 identity providers, will likely see a decrease as smaller or less effective ones either fail or are absorbed by larger entities with more robust data and technology.
Stable Trends Despite Cookie Deprecation:
Shift from Open Auctions: The use of open auctions for programmatic ad buying is diminishing. Direct transactions and private marketplaces are now preferred, offering benefits like reduced fees and lower risk of data leaks.
Growth in CTV Spend: CTV spending continues to rise, now surpassing traditional computer-based ads in programmatic spend. Advertisers are reallocating budgets to reflect consumers' increased TV screen time over computers.
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