The reshaping of the digital advertising industry
Three core changes are impacting and reshaping the whole digital advertising industry:
- Cookieless web: the cookie has represented the enabler of the digital advertising industry, enabling tech companies to track the user journey across several platforms, thus making it possible to build the whole attribution machine. Indeed, without attribution (the ability to say how a lead was generated) there would not be a digital advertising industry, in the first place. Yet, the cookie is getting retired. In fact, Google has planned the retirement of the cookie to its Chrome browser, thus determining the end of an era.
- iOS privacy changes: Apple forced, in 2021, a privacy change policy, which makes the opt-in to advertising from third-party apps, like Facebook, explicit. This means Apple will ask users whether they want to be tracked. As you can imagine, this is already having a massive impact on Facebook’s business model, which had to rebrand as Meta and invest billions into VR.
- Privacy from regulation: regulators are also pushing for more and more privacy within various platforms. This makes it much harder to track users and thus makes the whole digital advertising machine lose efficacy.
Amazon and Apple, coming up strong with their advertising businesses.
Amazon for e-commerce and Apple through its store.
In addition, new players, like TikTok are taking over.
Below is how the digital advertising industry looks like today:
Amazon’s overall business model
Google’s overall business model
Facebook’s overall business model
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