🌯 Google Hits Pause on Cookie Ban—but the Industry’s Moving On

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This Week
November 04, 2024
Google Hasn't Ditched Cookies, but the Industry Has
DV Uncovers Ad Fraud in White Noise Apps
OpenAI ChatGPT Search Launches
IAS Raises Brand Safety Prices
Image sourced from Shutterstock
The cookie may not be crumbling on Chrome precisely as we thought, but many people are still tossing cookies out in the garbage.

ID5 published its 2024 State of Digital Identity Report, offering a detailed look into how the industry is adapting to Google’s recent pivot on cookies. The report captures insights from 202 global respondents across sectors, including advertisers, publishers, and ad tech platforms.

This year’s report highlights the industry’s reaction when Google shocked the world and announced that it would allow users to opt out of third-party cookies instead of eliminating them. Findings reveal that most respondents attribute Google’s change in strategy to issues with Privacy Sandbox and ongoing scrutiny from the UK’s Competition and Markets Authority.

Despite Google’s rationale, 75% of respondents reported they remain committed to moving beyond cookies. With 76% already implementing cookieless solutions and another 15% planning to, universal IDs emerged as the top choice, with 85% using them for cookieless traffic.

But Scott Messer, Principal and Founder, Messer Media, said it best in our reaction piece to Google’s announcement back in July: “With at least 60% of the web being unaddressable by cookies at the moment, the focus should be on solutions that work for cookieless environments.”

He adds that he advises his clients to stay the course and continue weaning into a cookieless future. The sandbox will be an important part of the ecosystem in the future, but the short-term focus should be on more tangible solutions beyond it. – AB
White Noise or White Lies? Unmasking Ad Fraud in Sleep and Relaxation Apps
White noise apps, popular for sleep and relaxation, are experiencing rapid growth, but this surge has attracted fraudsters who exploit the audio streaming industry. Bad actors somehow found a way to use white noise apps as a trojan horse. Unfortunately, they get more creative by the day.

DoubleVerify (DV) recently identified a troubling trend: certain white noise apps are inflating ad impressions, diverting ad dollars through fake audio streams. DV's analysis revealed two major fraud schemes—BeatSting and FM Scam—that fabricate audio traffic via specialized servers, causing advertisers to lose over a million dollars each month due to unprotected ad placements.

To execute these schemes, fraudsters use techniques like spoofing IP addresses and setting up fake servers to mimic legitimate apps, such as "Deep Sleep" and "Deep Sleep Kids." These apps appear trustworthy with high ratings and downloads, but DV found that they use server-side ad insertion (SSAI) tactics to create fake audio impressions, draining ad budgets on non-existent opportunities. Signs of this fraud include unusual traffic spikes during the day, as seen in fraudulent apps, contrasting with the nighttime patterns typical of genuine white noise apps.

Detecting these schemes is challenging, as fraudsters increasingly use advanced methods to mask fake activity. With streaming fraud on the rise, DV stresses the importance of robust verification for advertisers to protect their budgets while ensuring that users and honest developers do not suffer from misplaced trust and wasted resources.

The most important thing is to keep trust with your consumers. As Ann Tarasewicz, CEO of Axis said, “With AI-powered detection tools, strengthened verification standards, and cross-industry collaborations, ad tech platforms are building a more resilient front line. Fraud prevention is no longer just about mitigating loss; it's about rebuilding trust and ensuring every dollar spent works toward authentic, meaningful engagement.” – AB
OpenAI’s new ChatGPT Search feature is stepping into the ring with Google, sparking a mix of excitement and wariness among publishers. With licensing deals from major players like News Corp, Le Monde, and Axel Springer, OpenAI aims to serve up more timely answers backed by real sources. But for some, this feels like another chapter in the ongoing AI tug-of-war over visibility and revenue. After all, while OpenAI has promised neutrality, not favoring partners over other media companies, there’s still that ever-present question: will this actually drive more traffic to publisher sites, or just keep it on OpenAI's turf?

For context, Google’s AI summaries have already raised alarm bells. Their latest AI-powered tweaks claim to benefit content discovery, but publishers worry they’ll take a big hit on clicks and ad dollars as users increasingly find what they need at the top of the page. It’s not just a hypothetical concern—companies like The New York Times and Alden Global Capital are actively suing AI companies like OpenAI and Perplexity for using their content without permission. Meanwhile, Raptive’s CEO recently warned that AI-driven search could cut publisher traffic by up to 50%, a significant revenue threat for an industry already walking a financial tightrope.

OpenAI’s entry comes with assurances that its approach will be collaborative, and it has actively sought feedback from partners on aspects like source attribution and content relevance. Yet, as AI models continue to evolve, there’s a lingering worry among publishers that “zero-click” is becoming the new norm, with AI summaries handling everything without funneling users back to the source. This zero-click issue has been a growing challenge with Google’s shifts in recent years, where publishers have adapted by finding new traffic sources or focusing on direct audience connections.

So, while the AI search train has indeed left the station, publishers are watching closely, balancing optimism with caution. OpenAI’s ChatGPT Search could bring a fresh wave of users—if it plays fair with referral traffic. But whether it boosts or bites into publishers' revenue models is still an open question and one we’ll have to watch as these new AI-powered tools find their footing in the wild. – LdJ
IAS Raises Prices Amid Federal Scrutiny: What This Means for Publishers
Integral Ad Science (IAS) is raising its brand safety prices by one to three cents per CPM, a move confirmed by Adweek and reportedly delivered through Yahoo’s DSP. The timing is striking, especially as IAS, alongside DoubleVerify (DV) and Google, faces a federal investigation into brand safety practices and potential conflicts of interest. The DOJ and NCIS are questioning how taxpayer dollars, including those from the U.S. military, ended up on restricted foreign sites despite brand safety assurances. With IAS rumored to be weighing a sale, this spotlight couldn’t come at a worse time.

For advertisers, this price bump is more than a few cents, potentially impacting publishers down the line. As advertisers shoulder these increased costs for brand safety, some of that strain could trickle down to publishers, especially if it influences broader spend dynamics in the programmatic ecosystem. Laura Boodram, CRO of FatTail suggests a simpler solution for brands: sidestep the middleman and go direct with premium publishers, potentially saving on tech fees that don’t always deliver as promised.

Still, the need for verification isn’t going away. Brand safety tools like those from IAS and DV can provide value in a complex and fast-changing programmatic ecosystem, but as prices rise, publishers and advertisers will be asking tougher questions about their effectiveness and accountability—especially when ad dollars are at stake. — LdJ
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