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- Google hands over the fate of cookies to users—what’s next?
Google hands over the fate of cookies to users—what’s next?
2024 Paris Olympics: What advertisers need to know
Surprise! Today, we’re dropping an exclusive edition all about the latest buzz in the advertising world. Let’s dive in and see what’s up…
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Google hands over the fate of cookies to users—what’s next?
In a surprising turn, Google has abandoned its plan to eliminate third-party cookies in Chrome. Instead, users will decide if they want to be tracked, much like Apple’s App-Tracking Transparency (ATT) feature.
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The new approach: Google's Anthony Chavez explained, “We’re introducing a new Chrome experience where users can make an informed choice about cookies, adjustable at any time.”
Industry reactions: Ad-tech experts believe this move could end cookies, as consumers are likely to opt out. Joe Root of Permutive noted, “Consumers hate how their data is used, and they will overwhelmingly say no.”
Since ATT’s launch, opt-in rates have been low, and many users already block cookies or use browsers that do. Permutive data shows 70% of users aren’t tracked by cookies today.
Cookies and ad tech: Third-party cookies are crucial for the $180 billion programmatic ad market. Google's replacement plan, Privacy Sandbox, faced issues like antitrust probes and negative test results.
The user experience: Details about the user prompt are still unclear. “Opt-out rates could significantly impact the landscape,” said Ari Paparo of Beeswax.
The ongoing uncertainty: Years of cookie uncertainty have frustrated brands. Wayne Blodwell of Impact Media likened it to “buying a car without knowing if the roads will be open tomorrow.”
Moving forward: Google’s Privacy Sandbox will continue to evolve. Experts suggest that user choice may set the future standard, balancing privacy with advertising needs.
“User choice is the pivot,” said Andrew Casale of Index Exchange. This user-driven model could reshape digital advertising. Stay tuned as the industry adapts to these changes.
STREAMING
2024 Paris Olympics: What advertisers need to know
The 2024 Paris Olympics are about to begin, and it’s not just the athletes gearing up. Brands and advertisers are set to make their mark in between the action, starting with the Opening Ceremony this Friday.
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NBCUniversal’s big play: After underwhelming ratings in 2021 and 2022, NBCUniversal is going all out for 2024. With at least nine hours of daily coverage and prime-time recaps featuring Snoop Dogg, Peyton Manning, and Mike Tirico, the broadcaster aims to make a splash. They’ve already secured $1.2 billion in ad sales, setting the stage for record revenue.
Peacock offers a tailored viewing experience, complete with an AI Al Michaels and exclusive highlights with Kevin Hart and Kenan Thompson.
Star-studded sponsors: Big names like Coca-Cola, Airbnb, Visa, and Procter & Gamble are in the mix, shelling out between $50 million to $200 million. Luxury giant LVMH is also on board, designing medals, outfitting French athletes, and popping champagne at VIP events.
Spotlight on women: This year marks a historic first with equal numbers of male and female athletes. Brands are taking note, leveraging the heightened focus on women’s sports. “The Olympics are a prime time for brands to connect with the growing audience for women’s sports,” says Rachel Quon of Just Women’s Sports.
As the world tunes into the 2024 Paris Olympics, advertisers are poised to engage with a massive, diverse audience. Stay tuned for the drama, the competition, and the brands vying for gold.
AD TECH
Pluto TV accused of gaming programmatic ad auctions
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The allegations: Six ad firms are scaling back on Pluto TV, accusing the Paramount-owned platform of manipulating programmatic auctions to drive up ad prices. The controversy centers around bid duplication, a practice where multiple bids are sent out for a single ad, tricking algorithms into overbidding.
The mechanics of bid duplication: Bid duplication inflates the perceived scale of Pluto TV's inventory, causing ad-buying platforms to spend more on ads than intended. This tactic, though not illegal, is contentious. It drives up prices by increasing demand artificially.
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The scale of the problem: Data highlights the disparity: on a single day in June, Pluto TV and its partners sent out 9.4 billion bid requests, far surpassing other platforms like Tubi and Roku. Despite lower viewership, Pluto TV accounted for 22% of all CTV bid requests, according to Jounce Media.
Industry reactions: Ad buyers report that Pluto TV's practices result in overspending. One buyer noted that Pluto quickly absorbed 50% of many clients' budgets, even though it only represented 5-10% of the unique audience reach. Another reported Pluto TV bids averaging 55% above the floor price, significantly higher than other platforms.
Steps taken: Some firms have stopped buying Pluto ads altogether, while others have negotiated for more transparency. One adtech company built a tool to filter out duplicate bids, reducing Pluto’s bid requests by 50%.
The broader impact: As programmatic advertising grows in streaming TV, these issues highlight a lack of transparency similar to the online ad market. While some argue it's not solely on ad sellers to fix these issues, the current practices at Pluto TV are forcing buyers to seek more transparent and cost-effective alternatives.
The takeaway: Ad buyers and firms are becoming increasingly wary of Pluto TV’s tactics, reallocating budgets to avoid inflated costs and ensure fair practices. The situation underscores the need for greater transparency and ethical practices in the programmatic ad space.