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Home Featured

Nearly 60% of Marketers Say the Loss of Cookies Could Reduce Revenue by as Much as 25%: Lotame Study

by Editorial
November 5, 2021
in Featured, Market Analysis
Reading Time: 2 mins read
Nearly 60% of Marketers Say the Loss of Cookies Could Reduce Revenue by as Much as 25%: Lotame Study
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Mumbai: Lotame (www.lotame.com), the only flexible data solutions provider to future proof connectivity and drive performance across all screens, today announced findings from part two of its “Beyond the Cookie” report.

Part one, “Beyond the Cookie: The Future of Advertising for Marketers and Publishers,” was released in February and examined how organizations are beginning to plan for the phase-out of third-party cookies. For part two, “Beyond the Cookie: Identity Solution Adoption & Testing Among Marketers and Publishers,” Lotame surveyed 200 Indian senior decision-makers in digital media and marketing to evaluate identity solution adoption amid the flurry of data privacy changes reshaping the open web. Respondents were polled in September 2021, after Google revealed another delay to deprecating third-party cookies to 2023.

Key findings from the report include:

  • Marketers Hurt, Publishers Helped – 53% of marketers say the loss of cookies will reduce ad-targeting opportunities, with nearly 60% (57%) expecting a 10-25% drop of revenue, as a result. Meanwhile, publishers expect cookie deprecation to be positive, with 43% saying it will increase their direct-sold business and 36% saying it will increase revenue overall.
  • Explaining Identity Solution Adoption – For marketers, their primary reason for adopting new identity solutions is to support data privacy (50%). For publishers, 63% said both “browsers blocking cookies” and “Google Chrome’s cookie deadline.”
  • Marketers & Publishers Want Multiple IDs – When asked what the optimal number of ID solutions was, 42% of marketers said three, followed by 20% who were “open to using any number.” Meanwhile, 34% of publishers said two, and 23% said three.
  • Google Cookie Delay Welcomed & Expected – Across all respondents when asked to react to Google’s decision to delay the end of third-party cookies, 60% said they were “glad because we needed more time to prepare,” while 47% said “I was expecting them to delay.” However, 58% also said “I’m suspicious of the reasoning behind it” and publishers (70%) significantly more suspicious than marketers
  • Industry Concerned by Apple’s Take on Privacy – In reaction to Apple’s Privacy Relay, 58% of all respondents said “I’m concerned for the impact on email hash identifiers,” while 51% said, “I’m concerned for our ability to monetize our email channel.” Relatedly, email-based identity solutions (69%) were the most popular choice when asked what types of ID solutions marketers and publishers were planning to test in the next six months to one year. Contextual (57%) was in second place, followed by cohorts (45%) and probabilistic (39%).
Gaurav Seth
Gaurav Seth

“A cookieless future is closer on the horizon and whether or not the industry ‘feels prepared,’ the end result is inevitable,”  said Gaurav Seth, Managing Director – India at 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.”

In October 2020, Lotame launched Lotame Panorama ID, the only enriched privacy-first global solution bringing identity to open web traffic. As the delivery mechanism for an extraordinary depth of rich, pseudonymized data, the average Panorama ID carries 200+ behavioral attributes.

Tags: Beyond the CookieGaurav SethLotame

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