If you go to a brand’s or publisher’s website, everything you do and all the information you enter counts as first-party data. This accounts for a large portion of digital ad spending- 85% in the US in 2020.įirst-party data: The data internet users give directly to a company. Publishers sell space to the highest bidder, and brands place ads targeted to particular audiences, regardless of the publisher who hosts them. There is no direct relationship between the brand and the publisher. Programmatic advertising: Ads bought through automated exchanges enabled by the adtech industry. Google is one of the world’s largest adtech companies, but the group also includes smaller, independent firms like The Trade Desk, LiveRamp, Criteo, and ComScore. Adtech companies automate the process of buying and selling ad space, track web users to help companies target the audiences they want to reach, and measure how effectively a marketing campaign is getting people to spend money with a brand. “If we do it right,” said Chetna Bindra, who heads Google’s product team on trust and privacy, “this will be the way to proactively shape the next couple of decades for a free and open web.”Īdtech: A catchall term for the hundreds of companies that help connect brands, which have ads they want to place, with publishers, who have ad space they want to sell. It’s hard to overstate what hangs in the balance. The decisions they reach over the next year will have widespread implications for the future of privacy on the web and how the businesses that operate on the internet carve up the spoils of the $336 billion industry of digital advertising. Industry groups representing advertisers, advertising agencies, browsers, and publishers are scrambling to come up with alternatives to the old methods of invasive personal tracking. The internet is now at an inflection point. Apple, sensing an opportunity to market itself as the privacy-friendly tech giant, has announced software updates that will make it much harder for advertisers to track what users do in apps and mobile browsers.
Europe’s landmark digital privacy laws have spawned copycats all over the world.
The public has become increasingly vocal about its discomfort with ad tracking.
The death of third-party cookies comes at a moment of widespread backlash against advertisers’ digital surveillance. When Google pulls the plug next year, almost no one will be left using a browser that supports third-party cookie tracking, rendering it effectively extinct. Google Chrome-which controls two-thirds of the global browser market-has announced it will follow suit by 2022. Safari and Firefox, the world’s second and third most popular web browsers, already block third-party cookies by default to protect users’ privacy.
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