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U of Digital Newsletter: January 24th-January 30th

Below is a roundup of last week’s notable industry news, with summaries and our opinions. Q4 earnings reports are here. Starting with Google.

Google Privacy Sandbox
Source: Various

 


Summary: All eyes are on the Privacy Sandbox now that Google has kicked off third-party cookie deprecation by turning off cookies for 1% of Chrome users. Companies across the ecosystem are testing the Privacy Sandbox APIs—and not always liking what they see. 

One Privacy Sandbox proposal gaining attention is Related Website Sets🔒. It allows publishers and brands to register up to five domains to rebuild (small) cross-site ad networks with tracking that works like third-party cookies. This would be permissible in cases where a brand or publisher owns several domains (like, say, Yahoo) and wants their users to log in only once to access the sites. Some argue it's too restrictive, while others worry it could be gamed by companies buying unrelated sites solely for cross-site tracking purposes. 

​​Another concern: Some Privacy Sandbox testing may be thrown off by alternative IDs🔒. Some may be using alternative IDs, such as LiveRamp’s RampID and The Trade Desk’s Unified ID 2.0, which may be based on fingerprinting and deterministic data such as email and IP address, while others are using Privacy Sandbox tools. As a result, there won't be a level playing field between the two, warns Lukasz Wlodarczyk, RTB House's VP of programmatic ecosystem growth and innovation. 

In Raptive's early testing results, it appears the Privacy Sandbox APIs are getting better at recovering performance loss, says CSO Paul Bannister. There are tons of caveats to these early findings, but they are promising nonetheless. 

Ironically, ad buyers say Google isn't making it easy to test the Sandbox APIs in its own demand side platform (DSP), Display & Video 360. Google isn't offering a user interface for direct testing. Other DSPs such as Adform, RTB House, and The Trade Desk are testing the Privacy Sandbox. Optable, a data management platform and clean room vendor, also launched an early access program to help advertisers get a handle on running Privacy Sandbox tests.

Opinion: So the entire industry is moving full-steam ahead of testing privacy sandbox APIs (even The Trade Desk, albeit begrudgingly) EXCEPT … Google? Kind of embarrassing, no?

Feeds into our (conspiracy) theory that:

  1. Google doesn’t care that much about DV360 anymore because it is a loss leader.

    1. Products like Google Search, YouTube, and PMax are way more lucrative.

  2. The government will demand that Google breaks up its ad tech monopoly, and Google will concede by spinning off DV360.

  3. Privacy Sandbox APIs are a means to kneecap addressability (and effectiveness) for open web ad tech companies (like an independent DV360).

    1. Remember: Google will still use its own deterministic ID for targeting / measurement across its own properties.

  4. If all of this goes down, Google (and other walled gardens) will steal a ton of share from the open web.


Google is playing chess while everyone is playing checkers. (OK, maybe Apple is playing chess too, but that’s for another edition.) 

While this all sounds scary (it is), there's a silver lining! Open web ad tech companies also have a shot at stealing market share from a spun-off, independent DV360. But you gotta start working on those narratives NOW!

 

That's it for this week's newsletter. Drop us a line with any questions / feedback.

The U of Digital Weekly Newsletter is intended for subscribers, but occasional forwarding is okay! 

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