Amazon, Reach Partner To Utilize First-Party Data For Targeted Ads
Amazon has teamed up with Reach, the UK’s largest publisher, for a special deal to get customer data for ads. This move comes just after Google decided to stop using third-party cookies on Chrome, a decision similar to what Apple did with Safari.
Third-party cookies track what people do online and help show them ads based on that. Without cookies, Amazon and Reach will use first-party data, like what articles users like, to make ads on Reach’s websites more relevant.
This partnership is significant in Europe and was created to overcome the loss of cookies. The deal uses Mantis, originally made to keep ads away from inappropriate content, now for placing ads next to content matching user interests.
With fewer ways to identify users online, this poses a challenge for advertisers, making publisher’s ad space less valuable.
Amazon’s Frazer Locke says that using first-party data is important for giving advertisers useful insights without harming ad reach or performance.
The media world expects more deals like this, with publishers thinking of using registration pages or paywalls to collect data directly from users.
Reach is already trying to get more data from its readers, especially as it faces losses in ad revenue and job cuts.
Jon Steinberg, CEO of Future, another publisher, believes that the end of third-party cookies will lead to more cooperation between advertisers, agencies, and publishers.
Martin Sorrell, head of advertising firm S4 Capital, stresses the importance of getting “consented data” from users, especially for companies that don’t have their own data sources.
Meanwhile, the UK’s Competition and Markets Authority (CMA) has concerns about Google’s cookie removal. They say Google is following commitments, but some issues need fixing before cookies can be fully removed.
James Rosewell from Movement for an Open Web sees the CMA’s report as a big warning for Google, with many regulatory concerns to address before completely getting rid of third-party cookies.