💾 Innovation vs. The Learning Curve

How The ‘Privacy By Default’ Internet Will Reshape Ad Industry Priorities

Change is coming quickly in the digital advertising industry.

With Google holding fast to its vow to phase out all third-party cookies by end of year, industry stakeholders are rethinking product road maps, business models and audience attribution tactics to prepare for advertising in a privacy-by-default internet.

All the while, our ad-supported digital ecosystem continues to grow and evolve, changing industry dynamics in real time.

As the industry continues to navigate the ongoing shift away from third-party cookies, there will be a substantial learning curve. With so many audience signals at large, independent ad tech will need to coalesce around working identity solutions.

As cookies go away, areas less affected by cookie deprecation – like mobile and in-app advertising – are poised for growth. But the challenge lies in the lack of uniform standards across these emerging channels.

Audience targeting, measurement and attribution aren’t going anywhere, but they will intrinsically evolve. The competitive advantage will belong to those who collaborate, as the future of the industry rests on building the collective standards necessary to drive innovation.

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🥠 The Future of Targeted Advertising in a Cookie-less World: Apple’s and Google’s responses to regulatory shifts may end up squeezing out small online retailers.

Later this year, Google plans to expand its Privacy Sandbox, a novel attempt to grant sites access to user data without compromising as much consumer privacy. The initiative, launched in 2019, has profound implications for the future of digital advertising.

“It’s a big change,” says Guy Aridor, an assistant professor of marketing at the Kellogg School. “They’re trying to achieve a balance between allowing targeted advertising on Google Chrome and protecting consumer data, which have always been in tension.”

⚡ Could the AI revolution crash our data centers?

The hundreds of AI tools now flooding the market share at least one thing in common: They all require massive amounts of data to operate. And as usage of those tools increases, the draw on data centers will become ever greater—potentially throwing a hitch into the generative AI revolution.

Beyond that, the increase in demand required by generative AI tools could also have knock-on effects on existing energy infrastructure, pushing electricity demand to the brink and causing a supply crunch that could lead to shortages in data centers worldwide.

🐕‍🦺 EU Privacy Watchdog Calls for Meta to Offer Ad-Free Option

The European Data Protection Supervisor (EDPS), in its recent statement, emphasized the need for Meta to align its operations with the EU’s stringent privacy rules. 

As of now, Meta has not publicly responded to the EDPS’s recommendation. The company’s approach to user privacy and targeted advertising has been a contentious issue, with previous instances of scrutiny and fines for non-compliance with EU regulations.

Google who? Gen Z is searching on TikTok, YouTube instead

Gen Z is turning toward social media as a search engine, seeking quick, relatable answers amid dissatisfaction with Google's results.

Users have been increasingly dissatisfied with Google's search results, says Danny Goodwin, managing editor of digital marketing and tech site Search Engine Land.

Low-quality results are well optimized to show up high on Google search result pages, per a study published this year by researchers in Germany focused on product searches.

Young internet users' behavior marks a clear departure from that of millennials, who came of age in a golden era of online search and take pride in their "Google-fu," the art of searching like a pro.

It's a headache for Google, a nearly $2 trillion company that's still heavily reliant on ad revenue tied to search results.

"People have many choices when it comes to accessing information," a Google spokesperson said. "We're focused on continuing to make Search a place where you can find high quality, reliable information as well as a variety of firsthand perspectives."

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