Why Blocking Third-Party Cookies Could Boost Paid Search Ads

Why Blocking Third-Party Cookies Could Boost Paid Search Ads
SHARE
THIS



With Google set to discontinue its support of third-party cookies, the entire online advertising ecosystem is bracing for a period of significant reform.

While most are prepared to develop ways to continue to serve relevant and targeted ads without third-party cookies, the change could see fundamental shifts in where online advertisers spend their money.

According to Charles Sturt University professor in information technology Yeslam Al-Saggaf, Search advertising could see a renaissance of sorts in the post-third-party cookies world.

“Because Google is planning to discontinue supporting third-party cookies, those websites that rely on advertisements will struggle to make an income,” he said.

“So in that sense, they might turn to Google to advertise their services on their behalf.”

Al-Saggaf pointed to recent studies by Google that found revenue for publishers drops by 52 per cent on average when advertising is made less relevant by removing cookies.

“However, it is not clear if this is what Google wants to achieve from discontinuing support for third-party cookies, in an attempt to force web publishers to use the more profitable (for Google) Search ads,” he said.

Google’s recent financial results revealed Search sales rose 15 per cent in 2019, which was slightly below the 22 per cent growth posted the previous year.

Al-Saggaf said he predicts any downward trend in Search to be reversed on the back of blocking third-party cookies.

Similar to Al-Saggaf’s hypothesis on third-party-cookies and Search ads, Criteo CTO Diarmuid Gill has suggested walled gardens such as Google and Facebook stand to benefit in a cookieless ecosystem.

“Another unintended consequence might be that after this transition, more advertisers may turn to walled gardens simply because they think it’s easier to address audiences,” he said in a blog.

“If this happens, prices will rise on those platforms due to the increased demand and will drop elsewhere (as overall budgets are unlikely to increase).”

what the future looks like

For Google, the ‘Privacy Sandbox’ is an integral part of the future online advertising ecosystem.

Announced in August last year, the solution promises to be a way to protect user privacy while still giving advertisers the ability to effectively target.

While this solution is still being developed, Al-Saggaf predicted machine learning and AI to play a significant role in the future of online advertising.

“Machine learning is a gamechanger in this space, it’s becoming very accurate. Third-party cookies or cookies in general may no longer be needed,” he said.

“[Machine learning] enables the extraction of patterns about people’s behaviours and characteristics and their previous purchases from historical data.

“With machine learning targeted advertising, you will now receive ads for products and services that even you don’t know at the time that you desperately need.”

Al-Saggaf also cited the continued rise of mobile as part of the case against cookies.

 

Please login with linkedin to comment

Google third-party cookies

Latest News

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
  • Advertising
  • Media

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off

Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]

Industry’s Gamers Unite For UnLtd’s Virtual Rocket League Comp
  • Advertising
  • Marketing
  • Media

Industry’s Gamers Unite For UnLtd’s Virtual Rocket League Comp

Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]

Sam Worthington And Phoebe Tonkin To Star In New Stan Original Film ‘Transfusion’
  • Media

Sam Worthington And Phoebe Tonkin To Star In New Stan Original Film ‘Transfusion’

Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]

COVID-19 Saw Stock Imagery Return To Harmful Gender Stereotypes
  • Advertising
  • Marketing

COVID-19 Saw Stock Imagery Return To Harmful Gender Stereotypes

According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]

by B&T Magazine

B&T Magazine
Maddison Connaughton Ends Time As Editor Of The Saturday Paper
  • Media

Maddison Connaughton Ends Time As Editor Of The Saturday Paper

Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]

Teenage boy wearing headphones works at desk in his bedroom
  • Media

New Research Names Olivia Rodrigo And BTS The Most Popular Study Music

Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]

Happy woman drinking tea and waving to someone while having video call over desktop PC in the evening at home.
  • Marketing
  • Opinion

Building A Successful Remote Marketing Team

Dayna Stewart is the Business Director – Digital Marketing, Media & Creative Services at The Nudge Group. Here, she discusses the challenges that come with building a successful marketing team when working remotely. Before COVID-19 changed the way businesses work, most marketing teams spent their days together in a meeting room collaborating on the next […]

Opinion

by B&T Magazine

B&T Magazine
Australia’s The Kid LAROI Joins Billie Eilish, Dua Lipa, Olivia Rodrigo And More In iHeartRadio Festival Line-Up
  • Media

Australia’s The Kid LAROI Joins Billie Eilish, Dua Lipa, Olivia Rodrigo And More In iHeartRadio Festival Line-Up

The line-up for the 2021 iHeartRadio Music Festival has been announced as the legendary event returns live in Las Vegas in September. This year, the epic two-day lineup for the iHeartRadio Music Festival main stage will feature performances by Billie Eilish, Cheap Trick, Coldplay, Dua Lipa, Florida Georgia Line, Journey, Khalid, Lil Baby, Maroon 5, Nelly, […]

Shop! ANZ Calls On Industry To Participate In ANZ Shopper And Retail Marketing Industry Survey
  • Marketing

Shop! ANZ Calls On Industry To Participate In ANZ Shopper And Retail Marketing Industry Survey

Shop! ANZ is calling on shopper and retail marketing professionals from all retail related disciplines to participate in the first ANZ Shopper and Retail Marketing Industry Survey in four years. This important research provides a guide of where the retail marketing industry in Australia and New Zealand has come from and what is anticipated to […]