Amazon’s search ads are quickly catching up to Google.
Gearing up for data protection laws in the U.S., the future of private marketplaces VS open exchanges, Wall Street’s letter to Silicon Valley on a regulated future, and the rebirth of contextual advertising.
Amazon’s advertising platform is now the second-biggest for search ads. While Google is still the leader in search, a forecast from eMarketer states the company’s share will fall to 71% by 2021. The threat to the Google and Facebook duopoly is evident as Amazon’s ad business keeps growing.
The implementation of GDPR in Europe showed how important it was for businesses to be compliant or else they would face legal consequences. Upcoming data regulations like California’s Consumer Privacy Act and New York’s SHIELD Act propose similar consequences— but less than half of the companies that operate or serve customers in the U.S. are prepared.
A recent report from eMarketer predicted that by next year the private marketplace will account for more dollar spend than in the open exchange. By 2021, advertisers will spend close to $16 billion on real-time display ads through PMPs. Some benefits of private marketplaces include access to inventory before it hits the open exchange, knowing where ads will appear, and less opportunities for fraudulent ad activity.
Before the regulation war on big tech, Wall Street faced a similar fate when tightened regulations were implemented in the financial services industry. As big tech navigates regulation changes, they can look to Wall Street as an example of being able to comply with new laws without going under.
As the cookie continues to crumble, Google has been working on new ways to reduce the impact this will have on advertising. One of Google’s methods that was recently launched was using machine learning to analyze traffic patterns for ad frequency control.
Publishers with affiliate revenue streams are seeing a negative impact on their business as browsers like Safari and Firefox continue to reduce user tracking. In the past, third-party cookies were used to attribute sales to a specific publisher. But now, publishers have to seek new solutions to earn their commission from retailers.
The ad tech industry is actively seeking third-party cookie alternatives and the solution might not be new technology. Contextual advertising is regaining popularity as browsers crack down on user tracking and new data privacy regulation pressures rise.