The Interactive Advertising Bureau is warning that the digital ad business could face a measurement blackout because while most of the industry is aware that third-party cookies are going away, there is no consensus about what to do next.
The findings were part of the IAB's State of Data report released Tuesday.
“If we don't diversify our approach to the market, soon we’ll be operating by the equivalent of candlelight.” said Angelina Eng, VP, measurement and attribution, Programmatic+Data Center, IAB. “The industry risks losing $10 billion in annual sales without a serious plan for what happens when everyone’s in the dark.”
Also: Advertisers to FTC: Banning Targeted Ads Threatens Trillions in GDP
The report is based on a study that found that nearly 60% of what it described as industry leaders said that they expect ad campaign measurement to be impacted by the loss of third-party cookies.
But when it came to alternatives for identifying consumers, targeting ads and measuring campaigns, there wasn’t a lot of familiarity with potential alternatives.
Also: IAB: New Surveillance Ad Bill Is Devastating
The study found that just 46% of those surveyed understood Google’s Privacy Sandbox. The Trade Desk’s Unified ID 2.0 and Microsoft’s Parakeet.
The study found that 66% are not adjusting their measurement strategies.
Just 15% of ad tech and publishers have adopted IAB’s Open Measurement SDK tech standard signal checks, which the trade group said are integral to standardized, privacy-compliant video and app measurement.
The study also found that despite a lot of talk about the importance of first-party data, the industry is increasing spending on third party data.
The report lays out three things the industry must do to avoid a measurement blackout. They are: develop a common language, universal standards, and universal KPIs; develop new privacy-centric solutions for addressability and measurement; and leverage existing tech standards and build on them in a cross-channel approach. ■
