IAB’s recent study found a false sense of readiness among industry data leaders that could lead to business failures in 2022.
Around 76% of data decision-makers think the demise of third-party cookies and identifiers would not affect their revenues. But, IAB is worried that the perceived sense of readiness among industry underestimates concerns and challenges.
Surprisingly, the industry continues to increase spending on third-party audience data, with expenditures going up by 3.3% to $12.3 billion in 2020. IAB’s Orchid Richardson said, “…majority of the digital media ecosystem believes they’re ready for what’s next. Many are wrong…”
With third-party cookies phasing out, publishers will have to replace up to $10 billion in ad revenue with a combination of first-party data and updated contextual targeting. IAB suggests the industry should start preparing to adjust to new ways of targeting, measuring and attributing media effectiveness to ad campaigns.
[5 minute read]