Publishers mull the breakup of Google, while its cookie consent mechanism remains a mystery

Welcome to the latest edition of Spotlight, your monthly summary of what’s making headlines in the world of digital advertising.

What we have for you today: Publishers voice concerns over programmatic revenues, Google gives little away about its cookie consent plans, and ad fraud once again makes the headlines.

Breaking up is hard to do

With the testimony phase of Google’s antitrust case closed, the industry is waiting with bated breath for closing arguments and the court’s ruling. Reports suggest that publishers are increasingly nervous that a potential breakup of Google’s sell-side business might affect their programmatic revenue streams.

Our view is that the publishers should welcome a change to the status quo. Either breaking up Google’s tech stack, or offering greater access to third parties, will help increase transparency and create a more level playing field for all. The current situation where Google decides who gets what slice of the programmatic pie is unfair to publishers and is in need of reform. Third-party adtech innovations can help publishers take greater control over their monetisation strategies and potentially boost ad revenues.

Withholding information

Google is also in the news over its planned consent mechanism for third-party cookies. Will it be opt-in or opt-out? How will it be worded? How will it function? Google is doing what Google often does: announcing a major piece of news and leaving the industry to guess at the detail. What’s needed is much more transparency so that the industry can have a better idea of how the consent mechanism will impact signals from tracking cookies and consequently their approach to programmatic advertising.

Early indications are that the introduction of consent will dramatically reduce cookie signals. There is currently no consensus over the final impact of the Google decision, however there appears to be agreement over an important decline in overall third-party cookie signals. One recent study found that more than a third of consumers plan to opt out of tracking cookies – and this is before they know how the consent mechanism will actually function whilst according to the second study 70-80% of Chrome users will decide not to have third-party cookies enabled on their browser.

It’s likely (based on what happened to Apple’s ID for Advertisers when that was made opt-in) that many people will decide against being tracked by cookies. However, until Google decides to share more information the full extent of the cookie meltdown remains unknown.

Earning trust

New research from Forrester should make for interesting reading for advertisers and publishers. The analyst house has found that while consumer tolerance for advertising is on the rise, trust remains hard to come by. It should be particularly heartening for brands that the valuable Gen Z demographic has seen its tolerance for ads nearly double in recent years. Concerningly, however, trust in advertising is low, with consumers worried about scams and misinformation.

Privacy is also a key element in building trust. Research from Omnicom out this month reveals that concerns over privacy have shot up from 33% in 2021 to 53% this year. Significantly, 21% of consumers reported that their wish to avoid passing on personal data has factored into their decision making around a purchase. Clearly, brands and publishers looking to rebuild trust, and make the most of growing acceptance of advertising, need to place privacy protection front and centre of their marketing strategy.

Protecting ad spend

The perennial topic of ad fraud is back in the headlines this month, with figures suggesting that nearly a quarter of advertising budgets were lost to fraud last year. With the total cost of ad fraud expected to increase from ￡64 billion in 2023 to ￡131 billion in 2028, industry insiders are predicting that AI will have a role to play in combating this blight.

However, AI, relies on probabilistic reasoning and statistical inference, so it cannot be the only (or even the best) solution to ad fraud. Proven solutions that use deterministic data derived from telco’s in-network intelligence provide an easy way for marketers to ensure that their campaigns are being seen by real people (not bots) and at the right time and place.

Such solutions could not have come at a better time, with nearly 60% of B2B marketers expected to do more with less in terms of their budgets. Telco-verified audiences can help marketers increase the efficiency of their campaigns by ensuring that the right people are exposed to their branded content.

More from Novatiq

Big news from South Africa this month. MTN, Africa’s largest mobile network operator, is partnering with Novatiq to deliver MTN Ads user recognition and audience addressability. Tanya Field, our CPO, was in South Africa to support the launch of the MTN service and participate in a panel debate on the digital opportunities for telcos at Seamless Africa.

During the event, Tanya met with a large number of regional brands, agencies, and publishers. Her take: “The South African market is primed and ready for the introduction of telco-verified IDs. We can’t wait to see how the market evolves over the coming years, and we look forward to working with MTN and other telcos in the region to make the most of the opportunities on offer.” You can read more about MTN Ads here.