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Amazon sees opportunity amid the demise of third-party cookies 🔒
Source: Digiday
March 18th, 2024
source: Digiday
Summary: Amazon is positioned to gain significantly as it can offer advertisers targeted and measurable advertising without third-party cookies. Amazon is already introducing new cookieless solutions such as Amazon Audiences and Modeled Conversions, which utilize its rich first-party data and AI capabilities to help advertisers effectively measure the impact of their ads without cookies.
Additionally, Amazon is supposedly developing a proprietary identifier, tentatively named ID++. ID++ would likely leverage Amazon’s logged in user base, along with other signals to propagate a new ID for advertisers that use Amazon’s ad buying tools and publishers that use Amazon Publisher Services. Nothing has been officially announced as of yet.
Opinion: First things first, it seems as though we've moved on from the single + era to the double + era. Can't wait for the next wave of ++ products: ID6++, UnifiedID3.0++, Hulu+Disney+ESPN++, etc. So exciting.
An Amazon ID solution is very intriguing. While Google and Meta deal with ongoing scrutiny for being anti-competitive and anti-privacy advertising companies, Amazon is flying under the radar. Probably because advertising is not Amazon’s core business, so it doesn’t garner much attention from privacy advocates and regulators. Meanwhile, Amazon has vast amounts of consumer purchase intent data (arguably much more valuable consumer data than what Google or Meta have) that it uses for advertising to the tune of $58.5B/year (and "3rd largest ad company in the world" status).
Amazon has all the key ingredients to build a powerful, differentiated ID solution: massive scale of logged in users on web and on streaming, strong demand and pub-side ad tech to tap into the bidstream for probabilistic signals, the leading data cloud where many marketers already house their data, leading clean room technology to ensure data is stripped of PII and can be used in privacy-centric ways, and more online transaction data than anyone else. Oh and the most important thing: no one breathing down their neck about privacy. No other ID solution has all of these ingredients.
Cookie deprecation could be the perfect event for Amazon to create an awesome deterministic + probabilistic ID solution that they can use to give themselves a leg up in the ad revenue race!
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