How cookie’s demise will impact cost of advertising
Publishers’ revenue too may take a hit, say industry experts
Third-party cookies have been termed as an imperfect way of targeting consumers with ads on digital platforms. Google’s decision to put the third-party cookie deprecation on hold till mid-2024 has reignited the debate about its likely impact on marketers and publishers.
While the demise of third-party cookies spells good news for consumers, it has major ramifications for the digital advertising industry. One of the key concerns among marketers is that they might have to shell out extra bucks for achieving the same marketing goals in a cookieless world. Publishers are still assessing the likely impact of cookie deprecation on their estimated ad revenue earnings.
Giving a marketer’s perspective, Dabur India Senior General Manager & Head of Media Rajiv Dubey asserted that the cost of advertising is always determined by market forces based on the prevailing circumstances. He also said that the importance of first-party data will increase in a cookieless world.
“Cookies will phase out in 2024 so it will all depend on the market scenario at that point in time. Market forces decide the ad pricing whether it is TV or digital. The marketing world will become much cleaner and sharper after the cookie phase-out. Marketers will have to work on building their own first-party data, which is not so useful at this point in time as many companies have first-party data but they don’t know what to do with it. In a post-cookie world, the usefulness of first-party data will go up. Currently, we are using a lot of second and third-party data,” Dubey said.
He also said that the third-party cookie deprecation will be good for consumers while advertisers will have to grapple with a host of challenges. “As a customer, it’s good that my data is not getting shared with anybody. Marketers will have to take consent from users to collect their data. It will be much safer as far as data protection is concerned. As advertisers, third-party deprecation will pose a lot of challenges and we will have to circumvent those challenges,” Dubey said.
TVS Motor Company SVP-Marketing Aniruddha Haldar said that the digital advertising rates might see a dip while hoping that the third-party cookie phase-out will lead to a better digital experience for consumers. “In general, rates may optically see a downward movement. Though on effective cost per sale kind of a metric, it would be interesting to see how the elimination of third party cookies also impacts ad fraud overall. Here’s hoping that more consumer-oriented first-party methods lead to a better digital experience and ROI.”
Times Internet COO Puneet Gupt said there is broad agreement that average CPA from paid display/native advertising will likely go up at least temporarily after this change as targeted advertising becomes more cohort (than user) based. He added that driving exposure over an entire cohort (than a select subset of users of the cohort that 3rd party cookies enable today) will mean more spending to drive the same set of conversions hence higher CPAs.
"However, my estimate is that this will drive away some demand that is dependent on super low CPAs that come from narrowly targeted (privacy invasive) advertising to be profitable. As this demand goes away, the price of inventory will also drop (due to less competition) and CPAs should come down somewhat," he added.
Aqilliz Chief Business Officer Rajeev Dhal said that the per unit advertising cost might not change much but increased inefficiency will impact the unit economics for brands. “In other words, the same outcome might need additional inputs hence an effective increase in the cost of advertising is anticipated,” he added.
Mitul Sangani, COO - News18 & Revenue Lead - Network18 Digital, believes that brands will likely be affected and the cost of advertising will go up since publishers will build their own data lakes and will invest in technology to create alternatives for cookies less advertising. For the premium publishers, this will likely be more pronounced, he added.
The Trade Desk GM – India Tejinder Gill noted that important industries and markets, such as journalism, television, and music, rely on advertising to fund their content, and monetisation of that content is best fuelled on the open internet, where advertisers can make deliberate decisions about which content to support, and where they can measure campaign performance effectively.
Voiro Founder & CEO Kavita Shenoy feels that the cost of advertising will go up as the investment by publishers to change their monetisation practices will need to be accounted for.
“Even today, there is an inverse relationship between targeting vs. cost of advertising. The more specific the targeting, the higher the ad rate. The move to a cookieless world will mean: 1) dependency on intermediary ad tech to access relevant audiences and the need to pay for that tech. 2) move of ad dollars to larger platforms with their own first-party identifiers, where the ad prices were inherently higher,” Shenoy explained.
Impact on ad revenue of publishers
Gupt said publishers with low investment in first-party data will see reduced direct sustenance advertising. Publishers that depend heavily on indirect revenue will also see an impact on their revenue for two key reasons.
"A number of ad networks that use audience data (based on 3rd party cookies) to bid on valuable users will see their business models under strain. Without this understanding of value, they will drive significantly lower value (CPMs) and hence revenue to Publishers. As a result of the above, there will be reduced competition to BigTech and programmatic partners (Pubmatic, Index …) and will lead to a lower value (CPM) from them at the same scale of impressions bought," he expounded.
According to Dhal, publishers will not see a dip in their revenue in the near term since the cost of in-efficiency will be borne by the brands. “Some estimates do suggest an estimated 35% to 40% drop in revenue but I am not too sure about it,” he stated.
Network18’s Sangani pointed out that a large part of the impact will be determined by how prepared the publishers are in their own first-party data initiatives and the kind of audience and genre they have. “For the uninitiated, the studies have shown a 30-50% drop in eCPMs (The implementation of GDPR has demonstrated this to some extent across geographies),” he said.
Shenoy quoted a McKinsey & Co study published in 2021 which predicted that the industry will see a hit of $10 billion in ad revenue due to 3P cookies deprecation on Chrome Browsers. “This, coupled with downward trends in advertising spends highlighted in this quarter’s earnings reports of tech companies (who count ad revenue as their primary source of revenue), would have meant a significant loss.”
The Trade Desk’s Gill said relevant advertising is fundamental to sustaining the value exchange of the open internet. Impressions without an identity will only result in reduced efficacy for advertisers and a race to the bottom for publishers, he added.
“We will continue to build solutions that contribute to a healthier, more privacy-conscious open internet, including prioritising Unified ID 2.0 to help advertisers and publishers prepare as best as possible once cookies go away. Now is the time to innovate, just as major companies such as Disney and AWS have recently announced. Publishers should use this moment as an opportunity to plan and implement solutions now for the eventual deprecation of cookies to plan and implement solutions,” he said.
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CTV is future-ready for a cookieless future: Prabhvir Sahmey, Samsung Ads
Sahmey, Senior Director, Samsung Ads India lead, shares with e4m insights into Samsung’s content recognition tool, the advent of CTV and its potential for advertisers
By Shantanu David | Mar 29, 2023 9:19 AM | 3 min read
Prabhvir Sahmey, Senior Director, Samsung Ads and India lead for the company, is confident that the company is future-ready for the cookie-less future.
When the first cookies were developed for browsers, users still had to prove their credentials through passwords and had to keep doing so even as ‘sessions’ saved the user’s information on the internet server. Cookies essentially allowed you to save that information.
“Service providers realized they were sitting on this goldmine of information, which would be very valuable to advertisers and consumer goods companies and that’s when the whole business started. So, you no longer have to log into your devices every time, but they also correspondingly have your information which can be sold to third parties and vendors,” he explained.
However, this is a phenomenon that is restricted to browsers, whether on PCs, phones or tablets. “TVs, even CTVs can’t store cookies and will therefore seamlessly transition into anonymization, a data processing technique that removes or modifies personally identifiable information, as the CTV is an individual device, meaning we are prepared for when cookies are off the table,” said Sahmey.
Besides, he noted, Samsung has ACR (Automatic Content Recognition) - a tool that can take images of what a consumer is watching at any given time and these content preferences can give insights into various metrics.
“Earlier, media plans had to be made a month in advance, but today, with addressable CTV, these can happen within 24-72 hour cycles. And we can provide data and media insights to our clients almost in real time, with data on reactions and to measure how well a piece of content or campaign is performing,” he says.
“The future of marketing is automated and our Samsung DSP will allow our clients to seamlessly manage reach and frequency of their video campaigns across linear TV, CTV, and other devices,” says Sahmey, adding, “We are helping platforms and vendors to automatize their data processes, even as we’re laying a foundational layer and selling the technology to digital buyers and marketers.”
And while Sahmey is more than enthusiastic about the future of Connected Television in India, he notes there’s still time before it becomes mainstream.
“Today we are at an inflection point in the adoption of Connected TV as consumers look to upgrade or switch their home TV devices to ones that can be connected to the internet. There used to be a time when people would buy a new phone every year, but now that has dropped to two-three years. Inversely, TVs used to be a long-time purchase, but now with cheaper screens, devices and data, consumers are looking to upgrade and will upgrade,” he pointed out.
“I look at this as Year Zero for CTV, as more and more consumers and advertisers get access to, explore, and settle on CTVs, with things beginning to massively scale up in 2024. Back in 2005, there were only 20 million people online, and that number rose to 100 million people only by 2015,” he says, continuing, “Today, the internet is ubiquitous with almost everyone at least having access to it. It’s the same with CTV except, because of the ubiquity of the internet, it’s going to take place at an accelerated rate.”
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TRAI tells telecom service providers to inform it about any major network outage
Major network outages in the country for prolonged duration, especially in border and hilly areas, adversely affect the availability or quality of service in affected areas, said TRAI
By exchange4media Staff | Mar 28, 2023 6:19 PM | 1 min read
Releasing a statement, the authority said, “It has been observed that incidences of major network outage of telecom networks occurring due to technical reasons or due to natural calamities are not reported by the Telecom Service Providers (TSP) to TRAI. These major network outages in the country for prolonged duration, especially in border and hilly areas, adversely affect the availability or quality of service in affected areas.
To understand the root cause of major network outages and get relevant support from local authorities extended to the service providers, if needed, the Authority has decided to collect the information about any such outage at the district level.”
TRAI further added, “In view of the above, the Access Service Providers have been directed to report the following:
- all incidences of major network outages affecting the telecom services to the entire consumers of a district (revenue district as defined by the Union/State Government) continuously for a period of more than four hours, within twenty-four hours of their occurrence, in the format specified in the Direction.
- the root cause of such major network outage and corrective actions taken thereof, within seventy-two hours of restoration of services, in the format specified in the Direction.
The direction shall come into force with immediate effect, stated TRAI.
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PubMatic announces strategic partnership with Silverpush
The alliance will enhance digital advertising in Indonesia, enabling brands and advertisers to better connect with their target audiences through data-driven advertising.
By exchange4media Staff | Mar 28, 2023 4:49 PM | 2 min read
PubMatic,(Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, and Silverpush, a leading AI-powered advertising solutions provider, are pleased to announce a strategic partnership that will enable brands and advertisers across APAC to better connect with their target audiences through data-driven advertising.
The partnership will allow advertisers to leverage Silverpush’s AI-powered contextual data programmatically through Connect, PubMatic's audience solution. Connect allows advertisers to engage audiences through privacy-compliant solutions that perform — without relying on third-party cookies or outdated strategies. Advertisers will now have access to valuable audience data, that can be applied on the sell side to bring greater efficiency to their campaigns.
Silverpush is an advanced advertising technology solution provider powered by artificial intelligence, offering its flagship products Mirrors and Parallels. Its contextual video ad placement targeting ensures the most relevant audience is reached in a brand-safe environment. With a mission to solve complex client problems using data-driven solutions and cutting-edge technology, Silverpush continues to drive innovation in the digital advertising industry.
Through Connect, advertisers will be able to access PubMatic's premium inventory and use Silverpush's hyper-contextual targeting capabilities to reach their targeted audience in the right context at the right moment which drives engagement and conversions.
"We're thrilled to be partnering with Silverpush - together, PubMatic and Silverpush will provide advertisers with a powerful suite of data-driven tools to help them optimize their campaigns and achieve their marketing objectives," said Brandon Lee, Director Audience Solutions, APAC at PubMatic. "Bringing targeting to the sell-side, via Connect, means buyers can gain greater control over how inventory and data are packaged and transacted to drive the best performance for their campaigns."
"We are excited to partner with PubMatic to provide our AI-powered contextual advertising solutions for a wider reach of audience. This partnership will enable advertisers to create highly targeted campaigns that are based on real-time consumer contexts, delivering better campaign results and ROAS." said Raushida Vasaiwala, VP-APAC at Silverpush.
The partnership is set to take effect immediately, with both companies working closely together to deliver their shared vision.
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e4m & Lodestar UM podcast: GenZs want to start businesses that make a difference
Aditi Mishra, CEO, Lodestar UM, and Kulanath Kaushik from Lodestar UM’s strategy team discuss how GenZs strive for balance even as they push for sustainable choices
By exchange4media Staff | Mar 28, 2023 7:59 AM | 1 min read
exchange4media has collaborated with Lodestar UM, one of India’s leading media agencies and a part of the Mediabrands India network, to create “Generational Zeitgeist” – a six-part Podcast Series that peaks into Indian Gen Zers’ mindset.
Based on multiple sources of learning including a three-part pan-India study with 1100+ GenZ respondents, Generational Zeitgeist covers a wide range of topics.
Each episode is a conversation between Aditi Mishra, CEO, Lodestar UM, and Kulanath Kaushik, one of the contributors to the study from Lodestar UM’s strategy team.
About the fifth episode
Mishra and Kaushik did some crystal gazing into how GenZs are shaping the future. They discuss that GenZ is a generation of critical thinkers who prioritize self-development and rational decision-making, which will continue to shape their choices in the future.
While they hold strong ideals, they strive for balance and consider practicality, as seen in their adoption of EVs, where they support sustainability but also weigh infrastructural support. This generation is characterized by their action-oriented mindset, big ambitions, and entrepreneurial spirit, always looking to experiment and try new things, including their career.
Many GenZ participants express a desire to start a purposeful business that makes a difference.
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EORTV partners with ITC Engage for campaign
The campaign played out digitally on EORTV the streaming platform and its social media properties for a little more than two weeks
By exchange4media Staff | Mar 27, 2023 3:30 PM | 2 min read
EORTV partners with ITC Engage for campaign
The campaign played out digitally on EORTV the streaming platform and its social media properties for a little more than two weeks
LGBTQ-focussed OTT platform EORTV has tied up with ‘Engage’, a body fragrance brand from ITC, for a promotional campaign. The campaign played out digitally on EORTV the streaming platform and its social media properties for a little more than two weeks.
As a part of the campaign, the brand’s banner advertisements were put on EORTV’s website and streaming app for 15 days. A substantial brand exposure was given on the platform’s YouTube channel and other social media handles. A 15-second pre-roll of Engage perfume’s audio-visual creative was attached to EORTV’s driver property, I Love Us 3. On screen-logo pop up in each episode of the show, I love Us 3 was also integrated into the campaign.
A subsequent contest was also run where gift hampers of Engage were shared with early bird subscribers and winners to encourage them to subscribe and view the platform.
Speaking about the collaboration, Falguni Shah, COO, EORTV, said, “We are really thrilled to have Engage- ITC on board. When a mainstream brand associates with EORTV it is very reassuring. Right from the outset our mission has been to integrate the LGBTQ community into mainstream society. Any effort or association in that direction is always very heartening. A widely used brand like Engage associating with us is a proof of inclusion. It sets a precedent and helps in paving the way for a much-needed change”.
Speaking about the campaign Deepak Pandey, CEO, EORTV said, “Engage is a very powerful brand and this association shows that the brand is connecting with the audiences in a meaningful way. EORTV has a very strong niche and we feel this collaboration is a step in the right direction towards inclusivity ''.
EORTV is a video streaming app that offers thousands of hours of premium, exclusive and original content. The main mission of EORTV is to create a number of diverse and inclusive stories of the LGBTQ + community, thereby eliminating any kinds of biases based on gender stereotypes and sexual orientation(s).
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PubMatic joins hands with Comscore's Proximic for offering ID-less targeting solutions
Data from Proximic by Comscore is now available to media buyers via PubMatic’s Connect platform
By exchange4media Staff | Mar 27, 2023 12:25 PM | 2 min read
PubMatic, an independent technology company delivering digital advertising’s supply chain of the future, and Proximic by Comscore, a division of Comscore, has announced the integration of Proximic by Comscore’s Predictive Audiences and Content Targeting solutions into the PubMatic platform.
Proximic by Comscore’s solutions are contextually driven alternatives to ID-based targeting. They are powered by Proximic’s industry-leading contextual natural language processing engine and intelligent categorization technology, allowing marketers and media companies to drive incremental reach and performance at scale without IDs.
Data from Proximic by Comscore is now available to media buyers via PubMatic’s Connect platform which provides privacy-first access to market-leading data and insights to enhance how inventory and data are packaged and transacted. The integration enables PubMatic’s clients to leverage new targeting options to reach key audiences in premium, brand safe environments across desktop, mobile, and connected TV (CTV).
“We are excited to partner with PubMatic to make our Predictive Audiences easily accessible for targeting on the sell-side,” said Jessica Trainor, Head of Partnerships, Proximic by Comscore. “This partnership offers buyers access to ID-less audiences that can be applied to private marketplaces to help close the addressability gap left by the many compounding factors driving signal loss in our industry.”
“PubMatic is committed to providing advertising solutions that deliver results. This partnership with Proximic by Comscore enables us to offer addressable audiences, incremental reach and performance to our clients,” said Brandon Lee, Director, Addressability, APAC at PubMatic. “Digital advertising industry is shifting from buy-side to sell-side targeting, a strategy that delivers superior addressability and performance for both publishers and advertisers in a privacy-centric matter.”
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TAM Sports launches CTV and mobile ad monitoring service for IPL 2023
This specialized service will provide real-time data and insights
By exchange4media Staff | Mar 24, 2023 3:23 PM | 2 min read
TAM Sports (a division of TAM Media Research) has announced the launch of Connected TV & Mobile (Android & IOS) Ad monitoring & Verification service for IPL 2023 Live Streaming. This specialized service will provide real-time data and insights to help you stay ahead of the game.
The CTV Ad monitoring will be initially for Live Streaming audiences watching on Connected TV targeted at Mumbai City, while Mobile Ad monitoring is for Live Streaming audiences viewing on IOS /Android mobiles and Geo-targeted to cities Mumbai, Delhi, Bangalore, Chennai and Hyderabad across key cohorts that the Advertiser is addressing.
CTV monitoring will also include 14 different language/other feeds - English, Hindi, Tamil, Telugu, Kannada, Bengali, Malayalam, Odia, Bhojpuri, Punjabi, Marathi, Gujarati, Lifestyle feed and 4k English feed!
Both the Monitoring services will provide Advertisers & Media Agencies with Pre, During and Post-Match Ad streaming reports within a day for IPL data users, enabling them to track their sponsorships on a real-time continuous basis.
"We are ecstatic to introduce this path breaking and unprecedented Ad Monitoring & Verification service on CTV & Mobile platform during the most happening Cricket Event of the year (IPL) via our flagship unit – TAM Sports”; said TAM India CEO Mr. L V Krishnan. “It will be a unique service as we kick start CTV and Mobile monitoring with this year’s IPL. With daily reporting of the data, it is almost real time for Sponsors, Agencies and other Stakeholders to track and maximize Ad Spends. We believe, this is one more step in our attempt to bring more clarity to investments on High decibel Digital properties and will pave way for more transparency to future Advertising spends on Digital Media.”
The report would essentially cover a variety of variables that comprise of – Platform, Stream Language, Targeted market selected by the Advertiser along with Match Date, Stream Duration, Category, Brands, Advertisers, and Ad Positions.
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