DIGITAL MARKETING

Third-party data declines as advertisers try new targeting strategies

By our News Team | 2022

Seventy percent of US advertisers are now using their own first-party data for targeting and measurement, researchers find.

Advertisers’ use of third-party cookies declined almost 10 percent in the latter part of last year, according to the new Cookieless Future Report released by Advertiser Perceptions, a New York-based research agency. 

Seventy percent of advertisers are now using their own first-party data for targeting and measurement, the researchers say. They add that advertisers are also testing cohort- and contextual-based data to move from one-to-one targeting, to aggregated targeting and measurement.

“Third-party cookie use declined significantly in six months, and there are strong signs that advertisers are investing in in-house first party data and contextual and cohort-based solutions of identification and measurement to ensure longer-term success,” noted John Bishop, Vice President of Business Intelligence at Advertiser Perceptions.

Digital marketing

Image by Nicolekoenig78 from Pixabay

Among the key points from the report:

Lessening performance impact

Most advertisers (81%) remain concerned about the impact that third-party identifier loss will have on their business. On average, advertisers estimate their ad performance will drop by 17%. While sizable, that’s less impact than they originally forecast (27%) last May.

Still using Identifier for Advertisers (IDFA) 

Nearly half (49%) of advertisers continue to use IDFA when they can gain consent, while 41% still use Google ID on Android.

Demand-Side Platforms (DSPs) face scrutiny 

Half of advertisers will change their DSP partner if they see performance decreases of 20% or more. A majority (67%) intend to move some money away from DSPs that don’t offer one-to-one targeting toward those that do. A DSP is a type of software that allows an advertiser to buy advertising with the help of automation.

Moving money to digital

Advertisers plan to shift money into social, CTV and digital video despite the potential impacts of cookie phaseout. While display advertising tops the list of ad types that advertisers believe will be affected by cookie deprecation, fewer advertisers expect significant declines in performance for display, mobile and social than in May 2021.

The first-party factor

As advertisers gain greater capabilities for in-house identity resolution and shift toward aggregated targeting and measurement, they will pressure media partners for performance at scale with these data sets.

Data interoperability is paramount

Advertisers put interoperability first when deciding on partners to develop audience without identifiers, while publishers prioritise ease of use. Yet publishers arguably need interoperability more than advertisers. Publishers will need to work with as many partners as possible to attract demand, and will likely need to lean on partners like SSPs that have more resources.

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