Adapex’s Forward-Thinking Approach to Google’s Latest Announcements
In a transformative move, Google has unveiled its phased plan to eliminate third-party cookies, set to commence in Q1 2024. The initiative starts with Chrome disabling third-party cookies for 1% of users, gradually reaching 100% by mid-Q3 2024.
Google’s Firm Timeline
This strategic approach is part of Google’s broader Privacy Sandbox initiative, providing a privacy-focused alternative to the current status quo. Rowan Merewood, developer relations for Privacy Sandbox, details the timeline and specific milestones in his team’s Cookie Countdown series, emphasizing the significance of this shift.
Preparing for the Cookieless Future
As the industry gears up for Google’s phased approach, publishers must act swiftly during the testing phase to evaluate solutions for the web without third-party cookies. Adapex strongly advises publishers to utilize this time effectively, testing and refining solutions to prepare for the cookieless future.
Adapex’s Visionary Cookieless Solution
Three years ago, Adapex anticipated the upcoming industry shift, inspiring the creation of a robust solution tailored specifically for publishers. Our practical approach effectively empowers publishers to leverage their first-party data, establishing a solid identity spine. With the help of our proprietary Magnify™ platform, publishers connected to Adapex can seamlessly provide advertisers with access to highly targeted audiences across three essential dimensions: contextual, addressable, and identifiable.
This foresight further drove a proactive research initiative. Between October 2022 and May 2023, Adapex conducted extensive A/B testing of various identity solutions across its vast network of over 1000 publishing sites. The goal was to assess the CPM lift effectively, validating the hypothesis and considering the approximately 4 billion bids processed monthly across the network. This rigorous testing provided a substantial dataset for evaluating the tangible impacts of identity solutions.
Results and Insights
The dual objectives of the research were to ascertain the efficacy of alternative identity solutions in identifying users on specific sites and to gauge the influence of employing privacy-compliant identity solutions on CPMs compared to traditional third-party cookies.
Adapex systematically tracked the identifiability of users across its publisher network websites using the six designated identity solutions. Through an A/B split test methodology, the company evaluated CPM fluctuations by transmitting user-identifying information to bidders in one scenario and withholding such information in another.
The research unveiled notable disparities in the effectiveness of identity solutions in user identification, contingent upon the browser and the specific identity solution employed. Coverage across the solutions exhibited a spectrum between 15% and 40% on cookieless browsers and a further range of 2% to 27% on Chrome, which relied on third-party cookies.
Given the variability in user identification based on the identity solution and browser, the significance of diversifying identity solutions becomes evident in maximizing CPMs. This becomes crucial as the advertising community continues to explore and consolidate around optimal alternative identifiers.
When aggregated, the CPM lifts collectively represent an increase of 2-16%. This strategic preparation gains even more urgency, with Chrome scheduled to depreciate third-party cookies next month. In practical terms, for a publisher with 1 million bids per month and an average bid of $0.60, these CPM lifts could signify revenue gains ranging between $12,000 and $60,000 monthly across the 12 identity solutions.
A Strategic Partnership for Publishers
As the industry faces this paradigm shift, Adapex reaffirms its commitment to publishers. The company’s ongoing research and proactive approach make it a valuable partner in navigating the evolving digital advertising landscape. Adapex encourages publishers to diversify identity solutions, maximizing CPMs as the industry adopts and agrees on the best alternatives.
As we embark on this transformative journey toward a cookieless future, Adapex is your steadfast ally, committed to guiding publishers through these dynamic changes. Together, let’s navigate the evolving tides of digital advertising, ensuring a seamless transition and continued success. Stay tuned for more updates, insights, and innovative solutions from Adapex.
Author’s Note: Since the completion of this research initiative, Adapex has further enhanced its capabilities. As of December, Adapex incorporates a comprehensive suite of 16 identity solutions as part of its Magnify Data Refinery solution. This expanded array of identity solutions continues to empower publishers with advanced tools for navigating the evolving landscape of digital advertising.