Forget the Cookie — What About the Potential Loss of IP Address Signals?
Will ad tech ever catch a break? Probably not anytime soon.
Third-party cookies are near death, there’s more unknown than known about UIDs (Universal IDs) and FLoC (Federated Learning of Cohorts), and now, IP addresses are soon to be a targeting method of the past.
Apple is hiding IP addresses on Safari and its mail app and Google has a similar, potential project — Gnatcatcher — that would hide IP addresses in Chrome. What’s a publisher to do?
“Generally, digital media has become unbelievably effective because of its precise targeting, and IPs play a key role in that. When you begin to take that precision away, it’s not a stretch to think that effectiveness starts to deteriorate,” said Vic Drabicky, founder and CEO of agency January Digital.
If publishers can’t rely on cookies or IP addresses, how will they target anything? The depth and specificity of targeting will undoubtedly suffer, leading publishers to get more creative when targeting consumers. Analyzing, and sorting through first-party data is a start. Publishers will need to work with data they have access to and can control.
The Audio Boom Continues
It’s been a busy week for podcasts, as well as for the methods of monetizing them. Amazon acquired Art19, a provider of audience targeting, measurement tools, hosting and ad serving capabilities for podcast creators and publishers. In addition, Spotify snagged Podz, a company that provides preview clips of podcasts to potential listeners. As platforms and advertisers double down on audio, it’s time for publishers to expand their audio business.
But with each passing day, as privacy regulations, along with platform changes, alter the way audiences can be targeted — publishers have less and less means of effectively targeting and helping advertisers reach consumers. Loss of third-party cookies and IP addresses be damned.
Brands are surely warming up to the sound of podcasts. Last year Omnicom made a deal to drop $20 million on Spotify. And while the space remains fragmented, like CTV, it's a place where advertisers know they can get optimal performance since podcasts offer brands unbeatable levels of listener dwell time and engagement.
Surely, Amazon is on a land grab mission, firming up its position in the triopoly. And this competition with Spotify and Apple gives Amazon incredible amounts of inventory to offer its advertisers. The Art19 deal offers two kinds of advertising: listener-targeted ads across a pool of more than 1,000 shows, and host-read ads across a selected list of shows.
After gobbling up podcast network Wondery six months ago and now Art19, Amazon will have a clearer view into what's happening with audiences both inside and outside of its ecosystem. Extending reach in this manner should only prove beneficial as the tech giant builds out its own third-party cookie replacement,
Something tells us it's due time that publishers take a look — er, listen — to the future of audio (which, by the way, is ad tech).
Around the Water Cooler
Here's what else we're reading and thinking about...
It ain't over 'til it's over: By now you may have heard that two antitrust cases against Facebook were thrown out. But any celebrations in play might be a bit premature as WIRED has a warning for FB: the FTC will continue their case to push for selling off IG and WhatsApp.
Pubs in search of post-pandemic revenue streams: Even with the pandemic at bay, pubs are still experimenting with virtual events. These events are offering an opportunity to reach attendees whose travel budgets may have been cut, as well as those who are not quite ready to get back out there.
CTV is only growing: CTV hit a high point during the pandemic, and the growth is spiraling upward. What's even better? Advertising dollars are growing in step with the audience. eMarketer predicts spend to surpass $13 billion in 2021 and $17 billion in 2022. Wowzers.
@aripap
I apologize for this.
Test Cookieless Targeting…Now!:
Even with Google’s recent decision to delay the retirement of third-party cookies in Chrome until 2023, the loss of numerous longstanding ad identifiers still looms large. Angelina Eng, VP of Addressability and Measurement at the IAB, shares her thoughts on the technical maneuvers that advertisers must take on to navigate a rapidly approaching future with far fewer reliable identifiers.
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