Industry Analysis - Chrome Privacy Updates
Google's Privacy Update might cause marketers to move to other marketing channels that do not depend on cookies. Changes to cookie technology greatly impact the publisher's earnings from advertisements. Below is an overview of the findings.
Implications for advertisers:
- Google’s Privacy Update will have deep implications for the manner in which some advertising players target consumers online.
- Ad tech companies would have to substitute cookies with other types of identifiers.
- Google will provide an API for other ad tech companies to show their ad targeting information in the same extension.
- Google will launch a browser extension that will reveal the names of the companies that have personalized ads as well as the factors used to customize the ads to the prospects. The types of companies that will be disclosed include ad tech companies, advertisers, ad trackers, and publishers.
- The lack of targeting can hinder an advertiser's ability to reach its intended consumer.
- Marketers may make more use of marketing channels that are not dependent on cookies, such as consumer platforms, email, OTT, and mobile apps.
Implications for publishers
- Publishers will benefit from experiencing higher advertising revenue without increasing ad impressions.
- Google’s move will set forth the trend in the direction of data transparency started by the General Data Protection Regulation (GDPR) but will negatively impact the middlemen that do not have a direct relationship with their consumers.
- Publishers that do not explore new ways to monetize first-party cookies, context, and content, will suffer.
- With Google’s privacy changes, things such as ad targeting, re-targeting, measurement, and attribution will be less effective.
- Alterations to cookie technology can greatly impact a publisher's earnings derived from ads because an ad is more valuable if it is more targeted to the prospect.
- With limited third-party cookies, publishers will play a more important role.
- Publishers will assertively analyze and monetize their data including email and demographic data.
- Publishers might ask users for additional data to access their articles.
- If publishers are unable to monetize as they have done previously, they might move their content completely behind paywalls or apply a metered approach.
- With the ecosystem moving away from direct-response dollars toward branding experiences, premium publishers of high-quality content would be highly benefited.
We commenced our research by perusing news articles, press releases, and industry publications around Google’s privacy updates for Chrome and the implications for advertisers and publishers. After checking through numerous articles published by leading technology publications and media outlets including, but not limited to, Vice, CNBC, Ad Exchanger, Tech Crunch, The Drum, Digiday, Clear Code, and Ad Age, we were able to find the requested implications.