The Role of Adtech in the Privacy Sandbox Era

1. The Countdown Begins
2. The Buy-side Gears Up for Challenges
3. Logistical Challenges and Solutions
4. Chrome Privacy Sandbox: The New Playground
5. The Early Access Program: A Closer Look
6. Addressing Measurement Concerns
7. Looking Ahead
8. Conclusion

The Countdown Begins

Since the start of the year, Google has initiated a phased 1% depreciation trial, signaling the countdown to a cookie-less future. Although there’s some debate around the practicality of Google’s timeline for phasing out third-party cookies, the urgency for action is clear.

The initial findings suggest a stark difference in monetization for users with cookies versus those without. Early reports indicate that uncookied Chrome users are monetizing about 30% worse than those with cookies. This gap is expected to be bridged throughout the year with continued investment in Privacy Sandbox, ID solutions, and more.

The Buy-side Gears Up for Challenges

A recent study by PrimeAudience revealed that 56% of U.S. marketers are testing for the cookie-less future. However, the same study found that 30% of marketers are unaware of how to use the Protected Audience API, indicating a significant knowledge gap.

Feedback from industry events suggests that DSPs face a particularly substantial challenge in transitioning to this new era. One of the primary hurdles is the need to build a separate buying tool to operate in the cookie-less version of Google Chrome, a task that requires significant resource allocation.

Logistical Challenges and Solutions

As the Adtech industry prepare for this transition, they face numerous logistical challenges. Notably, managing ad auctions in a web browser using APIs such as Protected Audiences presents a new set of obstacles.

Companies are already investing in solutions. For instance, Criteo’s Todd Parsons has discussed the DSP’s efforts to extend ad targeting on the platform. Lukaz Wlodarczyk of RTB House has also shared that his company has allocated substantial resources to experimenting with Privacy Sandbox. These efforts include the creation of a prototype DSP to operate in the cookie-less browser.

Chrome Privacy Sandbox: The New Playground

Meanwhile, Optable, a data management platform, has announced its early access program for Chrome Privacy Sandbox activation. Advertisers can now target audiences for Privacy Sandbox auctions by matching their data graphs with those of publishers integrated with Optable.

Although the supply for Sandbox campaigns remains low due to Google Ad Manager’s (GAM) selective triggering of Protected Audience auctions, Optable anticipates a ramp-up in frequency as cookie deprecation increases throughout the year.

The Early Access Program: A Closer Look

Optable’s early access program allows advertisers to build targetable audiences using their first-party data. This data can then be used to inform bidding rules, enabling more personalized and effective ad strategies.

Optable also serves as a component seller, processing demand for Protected Audience auctions on behalf of publishers. Furthermore, a publisher can designate Optable as a buyer, enabling advertisers to use the publisher’s first-party data to target members of that publisher’s audience on other sites.

Addressing Measurement Concerns

Besides building audiences, the early access program enables advertisers to measure their campaign performance. Optable has integrated the Attribution API, allowing it to assign conversions to ad impressions without the use of third-party cookies.

Looking Ahead

As the industry prepares for this transition, companies like Optable are closely monitoring the rate at which GAM triggers Protected Audience auctions and how this rate is affected by the amount of Protected Audience demand they send to a publisher. The Privacy Sandbox’s potential benefits for publishers seeking new demand sources and advertisers seeking greater audience scale are also being keenly observed.

Conclusion

The transition to a cookie-less future may seem daunting, especially for Adtech vendors. However, with ongoing experimentation and the development of innovative solutions like the Privacy Sandbox, the industry is gradually adapting to this new era. By embracing these changes and investing in new strategies, DSPs and other marketing stakeholders can continue to deliver effective, personalized advertising in a more privacy-centric world.

References & Further Reading

• DSPs prepare for heavy lifting within Privacy Sandbox
• Optable Says Chrome Privacy Sandbox Is Finally Ready For Real Campaigns