Dive Brief:
- Google is preparing for the death of cookies by developing "universal IDs," which would track users across multiple devices.
- Smaller agencies and ad tech firms worry that the loss of cookies as a tool would put them at a disadvantage to bigger firms with a wealth of first-party data, like Google, Facebook, Twitter or Yahoo. Google is positioned particularly well to hold a monopoly over their data.
- Smaller agencies like trading desk Xaxis are working to develop a statistical ID which could become the industry standard.
Dive Insight:
The fear held by smaller firms depending on third-party data for ad placement is real. They are facing a clear disadvantage if the industry moves towards first-party data, especially given the tracking capabilities of Google. When smaller companies are at the mercy of a monopoly, it always sets the industry up for failure because it slows innovation and creates opportunities for corruption.
