Week 4 | February 2024

In-Depth

The Death of Cookies: Here’s why advertisers should celebrate the upgrade

In January 2020, Google announced plans to disable third-party cookies on Chrome, sparking industry shockwaves. Four years later, as Google begins implementation, what was once seen as a crisis now presents an opportunity. While challenges remain, brands and agencies are adapting by strengthening their first-party data strategies.

The global shift towards privacy is undeniable, despite potential resistance from Big Tech. Brands must proactively embrace privacy rather than react to regulations or product changes. Companies like Apple are marketing privacy features directly to consumers, and industry leaders like Adobe and Salesforce are offering first-party data solutions. This reflects a broader movement towards stronger privacy measures in tech products, driven by both public sentiment and regulatory action.

Recent ad tech "innovation" aimed to maintain the status quo post-third-party cookie deprecation, avoiding non-compliance while sticking to traditional targeting methods. However, brands realize these are short-term fixes. Universal IDs offer new tracking methods but bring privacy risks brands want to avoid. Such approaches, driven by profit motives, will hit regulatory obstacles as privacy demands tighten.?

Marketing leaders prioritize reducing complexity and enhancing privacy. Complicated targeting creates unnecessary layers between brands and customers, compounded by ad tech middlemen taking cuts without clear ROI. Adopting a first-party data strategy streamlines complexity, cost, and signal loss, yielding stronger interest signals, optimized ad spending, and better user privacy. This shift allows brands to select partners that add transparent, measurable value.

The demise of cookies won't end digital advertising; it's part of a broader privacy shift. Adopting first-party data strategies offers brands increased visibility and value. Focusing on short-term fixes risks repeated setbacks as privacy-centric technologies evolve. Brands embracing a privacy-first approach gain a competitive edge, delivering more effective advertising experiences.

Industry Report

FY24 Ad spends to see muted growth by retail and media tech: Redseer Strategy Consultants

According to Redseer Strategy Consultants report "Breaking Barriers: Rise of Challenger Platforms in the Digital Ad Landscape"

• A 6% growth in advertising spending, reaching $16-17 billion in FY24, despite the impact of a 28% GST levy on real money gaming formats.
• Despite macroeconomic headwinds leading to most consumer sectors controlling their ad spending, e-commerce platforms will see an estimated 15% growth in spending this fiscal FY24.
• Challenger platforms like digital and retail media are gaining traction due to their ability to target high-intent users and reach Tier-2 audiences effectively.
• Key trends shaping the digital advertising industry include influencer advertising, performance ads, programmatic advertising, and GenAI integration, focusing on Tier-2+ audiences.
• FY24 will witness digital disruption in consumer sectors, with increased spending from digital-first and legacy brands pivoting to digital. Sectors like e-commerce, travel, hospitality, and consumer durables are expected to ramp up ad spending with customer retention in mind.

Around 45% of marketing leaders plan to invest in GenAI in the next 12-24 months: Report

According to a report by Deloitte and the RAI “Future of Retail: Profitable Growth through Technology and AI”

• By 2025, 20% of top global retailers aim to utilize distributed AI systems, revolutionizing sales, marketing, supply chains, and operations, with around 45% of marketing leaders planning to invest in GenAI within the next 12-24 months.
• With India's booming economy empowering tech-savvy consumers, retailers must focus on crafting superior shopping experiences through AI, IoT, mixed reality, and advanced analytics.
• Key trends driving emerging retail technologies include personalization and customer experience enhancement, supply chain optimization, automation and efficiency, omnichannel integration, data-driven decision-making, and enhanced security and fraud detection.?
• Innovative business models such as subscription-based services, Retail-as-a-Service (RaaS), and experience and community-focused retail are identified to help retailers stay relevant and capitalize on digital transformation opportunities while aligning with shifting consumer preferences.?

Industry News

Reliance and Disney announce strategic joint venture

Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company have jointly announced the signing of definitive agreements to establish a new joint venture (JV). This venture will integrate the operations of Viacom18 and Star India, with Viacom18's media assets merging into Star India Private Limited through a court-approved scheme. Additionally, RIL will inject ?11,500 crore into the JV upon closing, supporting its growth strategy. With a post-money valuation of ?70,352 crore, the JV will be predominantly controlled by RIL, with ownership distributed among the three entities as follows: 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney.

Spotify unveils AUX, an in-house music advisory agency

In a move set to revolutionize brand marketing within the music industry, Spotify has unveiled AUX, its very own music advisory agency designed specifically for brands. With a mission to enhance advertising campaigns through the power of music, AUX aims to bridge the gap between brands and Spotify's vast ecosystem, which boasts over 600 million fans worldwide.