Cookie Cutoff Could Mean Publisher Layoffs

Lotame’s latest “Beyond the Cookie” report is out.

Part one focused on the future of advertising for marketers and publishers and part two looks at identity solution adoption and testing among marketers and publishers. Two hundred digital media and marketing execs were surveyed in September following Google’s announcement to delay cookie deprecation until 2023.

There’s so much uncertainty and concern is high on all levels. Key reports findings include: Forty-eight percent of publishers predict having to downsize their workforce driven by the third-party cookie deprecation and the expected drop in revenue that it will bring. Sixty percent of pubs expect at least a 10-25% drop, while 31% are less optimistic, thinking revenues will drop 26-50%.

As well, both buyers and sellers were clear that they want multiple ID solutions as alternatives to the third-party cookie. Thirty-three percent of marketers said they would use three ID solutions or that they were “open to using any number.” Similarly, 33% of publishers said they were “open to using any number,” followed by two (28%).

Test Identity Solutions Now

“A cookieless future is closer on the horizon and whether or not the industry ‘feels prepared,’ the end result is inevitable,” said Andy Monfried, Founder & CEO of Lotame. “Digital advertising is changing, and identity solutions will be part of that new future. Addressability and connectivity are at greatest threat in the post-cookie world. Testing identity solutions now can not only soften the blow of a cookieless landscape but future proof a business’s ability to connect with consumers in meaningful and respectful ways.”

Marketers are all onboard to lean into identity solutions, but for varying reasons. “While marketers say their primary reason for adopting new identity solutions is to support audience targeting (52%), for publishers, the central reason is data privacy (59%).” Overall, marketers are feeling more pressure to start testing identity solutions now than pubs. Three in four marketers said that they were likely to test new or further identity partners in the near future.

In addition, Google’s cookie deprecation delay has publishers concerned about the motives behind it. Forty-seven percent were “glad because we needed more time to prepare,” 42% said “I was expecting them to delay” but 40% also said, “I’m suspicious of the reasoning behind it.”

The same goes for Apple. Its privacy stance has publishers questioning how they will be able to produce email revenue. Forty-one percent of all respondents said they were “concerned for the impact on email hash identifiers,” while the same number said they were “concerned for our ability to monetize our email channel.”