The ad industry is looking for a way to save targeted ads, but publishers worry it’ll cheapen their reader relationships and cost them revenue

the trade desk

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With Google set to nix third-party cookies in Chrome by January 2022, time is ticking for publishers and adtech firms to figure out how to avoid a revenue hit.

Without cookies, it’ll be harder for advertisers to target and measure their online ads and are likely to spend less money with publishers and adtech companies.

There are many workarounds to third-party cookies, but the one with the most support from the adtech community is Universal ID 2.0 (UID2) — an attempt to rebuild the cookie using individuals’ email address as the basis.

Initiated by adtech company The Trade Desk and now open-sourced, UID2 has broad support from other adtech companies like Magnite, Criteo, and LiveRamp, measurement providers like Nielsen, and publishers including The Washington Post, Los Angeles Times, and BuzzFeed. A full list of publishers supporting UID2 is here.

In theory, the UID2 will benefit publishers by raising their CPMs, or online ad rates they charge advertisers to reach their logged-in users, while making up for a loss in advertising from the inability to track non-logged ones.

Logged-in audiences are usually a small percentage of site visitors, but they’re heavy browsers, making them valuable to advertisers. One publisher source said these visitors can be 2% of the logged-in audience but represent 15%-20% of a site’s revenue.

But other publishers fear adtech companies and websites will use their hard-won logged-in audiences’ identities without permission to sell advertising cheaply, costing the publishers revenue.

Assurances from adtech companies that data won’t be misused don’t satisfy publishers like The New York Times, which opposes email-based identifiers because it’s uncomfortable sharing data about user behavior. And adtech assurances don’t satisfy publishers like Meredith and Leaf Group, which want the concept to work but want more control over their data. (Insider has also come …read more

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Source:: Businessinsider

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