Delays To ID Deprecation Have Advertisers Slow-Rolling Their Measurement Solutions

Advertiser Perceptions' latest survey shows usage of third-party cookies by advertisers is declining, but slowly.

Though cookies will quickly be off the menu and cellular identifiers are underneath hearth, advertisers are taking their candy time to prepare dinner up options.

The advert trade has its causes for procrastinating. Google’s choice to delay the deprecation of third-party cookies in Chrome till 2023, coupled with the continued availability of cellular advert IDs on Android, has been an invite for advertisers to embrace the established order.

Two-thirds of entrepreneurs say they’ve hit pause on actively transitioning from third-party identifiers, in accordance with a brand new survey from Advertiser Perceptions, which polled 153 advertisers and companies within the US between mid-November and mid-December 15 on their plans for figuring out and measuring audiences within the wake of sign loss.

The primary time Advertiser Perceptions did this examine in Might 2021, it was earlier than the discharge of Apple’s AppTrackingTransparency framework and earlier than Google had introduced its third-party cookie deadline extension.

“There was a way of urgency,” stated John Bishop, a VP of enterprise intelligence at Advertiser Perceptions.

This time round, most advertisers say they’re not speeding to interchange third-party cookies or discover different focusing on strategies for in-app environments.

However not everybody has their head buried within the sand.

Some advertisers are actively testing a number of alternative ID options from Google, Apple, LiveRamp, Yahoo and others.

And though third-party cookies stay the most well-liked technique for focusing on and measurement for now, a rising variety of advertisers declare they’re abandoning utilizing third-party cookies altogether.

Present state of measurement

Eighty-eight p.c of advertisers say they presently use third-party cookies – which is a heck of rather a lot. However that’s down from the 97% who reported utilizing cookies the primary time Advertiser Perceptions did this survey in Might.

“Despite the fact that that may be a statistically important lower, about 9 in 10 are nonetheless utilizing third-party cookies,” stated Nicole Perrin, a VP of enterprise intelligence at Advertiser Perceptions.

Nonetheless, a virtually 10-point drop over a six-month span within the variety of advertisers that report counting on third-party cookies runs counter to the oft-repeated trade narrative that advertisers will stay all-in on cookies till they disappear from the bidstream, Perrin stated.

“Cookies are nonetheless there, but we’re seeing a significant pullback in reliance on them,” she stated.

From one perspective, the continued widespread use of cookie-based ID options means that advertisers are dedicated to the previous methods of doing issues. However it’s additionally seemingly some advertisers are testing the effectiveness of latest ID options towards the tried-and-true cookie, stated Lauren Fisher, GM of enterprise intelligence at Advertiser Perceptions.

First-party information was the second-most-popular mechanism to establish and measure audiences, proper behind third-party cookies. Eighty-two p.c of advertisers agreed they use first-party information like logins, electronic mail addresses and recognized consumer information. Forty-two p.c reported utilizing second-party information.

In a separate survey query, 70% of advertisers reported utilizing their very own first-party information.

(The discrepancy between these figures could mirror ambiguity as to what constitutes first-party information vs. second-party information. From an advertiser perspective, writer first-party information would technically be second-party information, however some advertisers should check with it as first-party information.)

Over on cellular, almost half (49%) are nonetheless utilizing IDFA – after they can get consent, that’s – and 41% are nonetheless utilizing the Google Advert ID on Android, which continues to be out there, at the very least for now. With the discharge of the Android Privateness Sandbox, the writing is on the wall for Google’s advert ID, and don’t be stunned whether it is phased out inside the subsequent two years a la third-party cookies in Chrome.

Advert efficiency agita

Though advertisers are largely going about their enterprise as typical, there’s concern in regards to the short- and long-term results of sign loss.

Eighty-one p.c of advertisers say they’re nervous about how being unable to entry third-party identifiers will have an effect on their enterprise.

General, advertisers predict the phaseout of third-party cookies will lead to a 17% discount in advert efficiency. Though that may be a major drop, it’s a much less pessimistic prediction than the 27% lower in advert effectiveness respondents anticipated when Advertiser Perceptions did its ballot in Might.

Nonetheless, demand-side platforms ought to take discover.

Half of the advertisers Advertiser Perceptions spoke with stated they’d change DSP companions on account of a 20% or greater drop in advert efficiency.

Alternatives

When requested to rank their prime standards for partnerships to deal with identifier phaseouts, advertisers cited interoperability, ease of implementation and technical help, in that order (though the proportion break up between these was negligible).

Advertisers prioritize interoperability, ease of implementation and technical support in their post-cookie, post-mobile-ID measurement partnerships.

DSPs with their very own in-house ID options may stand to money in.

Sixty-seven p.c of respondents stated they’d shift some advert spend away from DSPs that don’t provide one-to-one focusing on and towards DSPs that do – down from the 77% in Might who stated they’d prioritize working with DSPs that supply one-to-one focusing on.

Advertiser Perceptions tied that drop to the reemergence of contextual and the evolution of cohort-based options.

“Advertisers are nonetheless closely invested in first-party information,” Fisher stated, “however they’re additionally now migrating towards contextual and cohort-based, privacy-preserving approaches versus preserving one-to-one focusing on and measurement.”

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