As digital advertising undergoes significant transformations, portals, SSPs, and networks are finding new ways to leverage 1st party data and take control of the advertising ecosystem. This shift not only brings back transparency and control over campaigns but also enables more precise targeting and a safer environment for brands. The role of DSPs, which previously held considerable control over ad budget allocation, is gradually diminishing, making way for new business models that favor publishers and advertisers.
The Challenge of 3rd Party Cookies and the Invisible Audience
Although Google recently announced that 3rd party cookies will remain for some time, our measurements show that over 60% of users are already without 3rd party cookies. This presents a challenge for advertisers as a larger portion of the target audience becomes invisible. This audience, like iPhone users, is no less valuable, and research shows that advertisers are willing to pay 2.8 times more for data-driven campaigns compared to those without data. However, reaching only 30% of the audience is not acceptable for serious advertisers.
The Ad Tech Ecosystem Vacuum and the Opportunity for Portals
This situation creates a vacuum in the ad tech ecosystem. DSPs, which relied on 3rd party data, face limitations, while SSPs, networks, and portals benefit from direct contact with users and can independently collect 1st party data. In the past, DSPs dominated digital advertising, controlling communication with advertisers and their budgets, often reducing transparency and limiting publishers’ opportunities.
New Business Models: Tailored Offerings
In this new context, business models are evolving, reshaping the dynamics of the ad tech ecosystem. Tailored offerings are becoming a key strategy, allowing SSPs, networks, or groups of portals to communicate directly with advertisers. By bundling offers that utilize 1st party data, they can enable more precise targeting and reach 100% of the target audience with reliable data. Increased transparency also ensures a safer inventory for brands.
Taking Control: Strategies for Portals
For portals, this moment represents a unique opportunity to take control and increase revenue. The key is to start collecting 1st party data. Using IAB audience taxonomy as a foundation makes it easy to propagate data to various DSPs. The IAB audience taxonomy serves as the basis for sending data into Google Ad Manager through Publisher provided signals and into Prebid via Seller-Defined Audience. This approach ensures the compatibility of portal data with different platforms and tools used by advertisers.
In addition to standard taxonomies, portals can analyze their audience to identify additional custom segments. By collecting these “custom” audiences, they can create unique packages that cater to specific advertiser needs. This allows for even more precise targeting and market differentiation. By creating these tailored offerings, portals increase the value of their inventory and strengthen relationships with advertisers.
Developing their own technology stack, which supports not only the collection of 1st party data but also “tailored offerings,” becomes crucial. In this way, portals not only enhance the effectiveness of campaigns but also create a safer and more controlled ad space for brands.
Conclusion: The Future of Advertising in the Hands of Portals
Changes in digital advertising present challenges but also significant opportunities for portals. By leveraging 1st party data and adopting new business models, portals can take on a more active role in the ecosystem, delivering greater value to both advertisers and users. In a world where user privacy is increasingly important and 3rd party cookies are becoming obsolete, portals that adapt will be the ones shaping the future of digital advertising.
