News Round-up: No Cookies for You; Gen Z Supports Ads
Early mid-January results from Chrome’s 1% phase-out of third-party cookies are in, and though AdExchanger explains that they should be taken “with a grain of salt,” it may give an early look into shifting dynamics. Tests that were conducted using the cookieless group found that “test audiences attracted 30% lower CPMs on average compared to cookie holders.” However, this number could be misleading as advertiser algorithms are not completely updated for cookieless browsers, so later results could potentially swing in either direction.
The Interactive Advertising Bureau (IAB) recently released a study that reveals some insights into consumer thoughts and concerns regarding ad-supported internet. The study of more than 1,500 consumers found that Gen Z is highly supportive (80%) of websites remaining free with advertising support, with the general preference to pay nothing in exchange for viewing more ads. Nearly half of respondents felt that websites did not reveal enough information regarding personal data usage, with IAB CEO David Cohen commenting that, “The ad industry must reinforce to consumers that sharing their data is both safe and beneficial to them.”
At the IAB Annual Leadership Meeting earlier this week, Cohen remarked that 2024 seems to be a landmark year in terms of third-party cookie deprecation, more data privacy laws springing into action, and the introduction of the Privacy Sandbox. “The initial indication is that there will be a CPM impact for publishers, and there might be some performance impact,” Cohen told AdExchanger. With all the changes going on this year, it’s important for the industry to acknowledge and adapt.