How to future-proof your ad revenue? Prepare for cookieless monetization with PPIDs
As the use of third-party cookies becomes increasingly restricted, alternative identifiers are being sought to provide the same level of personalized user experiences and data collection.
In this article we will take a closer look at Publisher Provided Identifiers, PPIDs from Google – unique identifiers assigned to an individual that allow websites and apps to recognize and personalize both ads and the user experience. If you’re looking for a good starting point in your first-party data strategy, you are in the right place. We will walk you through:
According to a report made by McKinsey, the projected absolute loss in revenue can reach 10 Billion dollars in the U.S. alone. Publishers dependent on their personalized ads revenue will be affected the most. If your data-driven ad revenue reaches 80% of your total revenue, beware of the transformation coming.
For publishers, lost revenue will mean less money to create new content, run their businesses, and pay their employees.
Immediate revenue uplift (15%) reported by a Spanish-language media conglomerate Grupo Prisa after implementing PPIDs, compared to campaigns running without any other signals present (including 3rd party cookies)
Third-party cookies are still widely used in online advertising to track users’ behavior across multiple websites and collect data on their interests, preferences, and online activities. This data is used to build user profiles and create targeted advertising campaigns. Advertisers can use third-party cookies to serve ads to specific audiences and track the effectiveness of their campaigns. Ad networks and programmatic advertising platforms rely on third-party cookies to facilitate ad serving and optimization.
Although third-party cookies are currently providing several benefits for ad revenue, they will be deprecated in mid-2024. These benefits include:
In a nutshell, in the world of third-party cookies, most publishers enjoyed the luxury of not knowing what was happening with user data. However, in the first-party world, publishers need to be more educated. The value of data will be partially transferred from platforms back to the hands of publishers. However, without the necessary expertise on the publisher’s side, losing the simplicity of third-party cookies may have negative effects.
Tracking users and providing personalized experiences in a post-cookie world can be challenging. In this section, you will find tech solution definitions that are not tied to any specific provider. If you have your own developers, it’s important that they have a good understanding of these solutions before diving into PPIDs. Or, you can reach out to FatChilli for help.
First-party cookies are set by the website the user is visiting and are not shared with other domains. Unlike third-party cookies, first-party cookies are less likely to be blocked by browsers and can still be used for personalization and data collection. However, first-party cookies can only be set for the domain the user is visiting, limiting their ability to be used for cross-site tracking and targeted advertising.
This involves collecting information about the user’s device, such as the type of device, operating system, screen resolution, and installed fonts, and using this information to create a unique identifier. Device fingerprinting can be used to track users across multiple visits to a website, but its accuracy can be impacted by the user’s device settings and the availability of information.
This involves asking users to log in to websites and apps and tracking their behavior while they are logged in. User-based tracking is less intrusive than device fingerprinting or third-party cookies and can still provide valuable insights into user behavior.
