Truth: Current programmatic advertising technologies don’t work for television. Premium video was never going to be a format that someone could buy in a traditional demand-side platform (DSP) and current trends have simply accelerated this realization.
Legacy programmatic won’t support a data-driven future
Walled gardens restrict how data and identity leave and enter their environments. The latest example of data restriction was Amazon’s announcement that it is instituting new barriers to viewer data on its connected TV apps, which includes obfuscating the IP addresses of viewers. This follows moves by Apple to restrict the use of IP addresses, as well as cookies and device IDs, and of course, moves by Google to phase out third-party cookies in Chrome by the end of 2023.
Looked at in totality, all of this means we need to get ready for a world without third-party identity or proxies for identity (i.e., IP addresses) in programmatic.
In this potentially future ID-less world, first-party data will be king. For TV publishers and distributors, this isn’t a bad thing: Both know their audiences well. But to stay competitive, the TV industry needs scale. This requires data connections and technology allowing media companies, distributors and advertisers to compete in a way that protects both consumer privacy and the value of first-party data. And that’s one place where I think current programmatic buy-side platforms are getting it wrong.
As cookies crumble, identity fragments the industry
The onslaught of regulations and OS and browser privacy enhancements create new challenges that will fundamentally change ad tech’s relationship with consumer data. In addition, viewers have more choice than ever in where and how they view content. Said another way, if you’re creepy with consumer data, they will leave. That’s why almost every player in the complex media ecosystem is rushing to find a solution to carrying on in a “third-party ID-less future.” Which approach will prevail? It is not clear, but trends are emerging.
The ad tech landscape has splintered into numerous camps based on their philosophies toward data and targeting. Each of these approaches has pros and cons. Ultimately, all third-party IDs will likely fade away, inclusive of the “universal” ones in which some companies are investing.
On the other hand, a cohort-based, aggregated targeting solution aligns well with the objectives of many TV advertisers who use the medium for top-of-the-funnel marketing. It becomes clunky, however, when compared to capabilities afforded by more granular targeting approaches and makes the use of first-party data assets less precise. Another option—clean rooms—helped alleviate some of the privacy concerns …….