We have our unique interests. From the advertising point of view, the ads that can reach a specific target group mean a higher conversion rate. To describe this in the concept using the metaphor of washing elephant ears. To clean their ears by washing the whole body would serve the purpose, although it would use up more water in the process. However, if one would focus on cleaning only its head or ear areas, the result of effective resource utilisation is easy to see. To apply the same idea in advertising, user data is almost essential to narrow/track down the interest group, make a higher conversion and return in the money spent on promotion.


It has not been a secret, that the usage of individuals’ internet footprint had led to some privacy concerns. There have been several reports on the misuse of user data from corporates, let alone other cybersecurity and monitoring issues. Taking this into account, Google and Apple made changes in their rules regarding tracking user’s information from within their products to any third parties using their service platform. It’s been said, the website cookies that are used and generated by third parties will be blocked at the following updates. Now, every piece of user information will need to request permission from users. Moreover, for developers who want to track the activities of users, disclosure of the purpose of tracking will need to be addressed firmly and informative.


On the bright side, users will have more privacy as there will be fewer ads introducing your products or services related to what you just looked up on search engines. However, it will be harder for developers to create a programmatic advertisement that suits personal interests.


This means if users do not give tracking permission to third parties or Adtech companies, the advertiser will not be able to show ads based on the user’s behaviour. With the new directions large companies are going, first-party data will be even more valuable. Adtech companies that highly rely on third-party data have to shift their focus to first-party data. Less collected data might sound concerning but first-party data is more accurate, and there are ways to increase user data such as from membership or reward systems.


Besides big firms laying more importance on privacy, legislation of privacy regulation is being implemented in many countries such as GPDR (General Data Protection Regulation) in the EU or CCPA (California Consumer Privacy Act) in USA, California. It is anticipated that by the limitation of third-party cookies, raising brand awareness will be enhanced to acquire new customers and customer reengagement. Acquiring first-party data is crucial for Adtech companies, however, resourceful companies might not be willing to share those data. Adtech companies need to understand that the playing field can always change, keep learning and testing to fit the new playground.


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