The digital advertising landscape is in a state of flux. Remember the panic around the demise of third-party cookies? It seemed like the sky was falling: advertisers feared losing vital targeting data, CPMs were expected to plummet, and publishers braced for a significant hit to ad revenue.
But as the dust settled, many publishers noticed that the catastrophic decline never quite materialized. The industry adapted, and life went on. However, beneath the surface, significant shifts have been occurring—changes that publishers need to be aware of to stay ahead.
As third-party cookies phase out, a new system has emerged to fill the void. This system revolves around first-party data and hashed email identities. Advertisers and ad tech partners have innovated rapidly, developing mature solutions that not only replace third-party cookies but often outperform them. These advancements have streamlined the advertising supply chain, reducing middlemen and giving publishers more negotiating power.
Yet, many publishers are lagging in two critical areas:
The shift away from third-party cookies began in earnest when Apple announced it would block them on Safari for mobile devices. This move caused widespread concern as CPMs on Apple mobile traffic noticeably dropped. The fear was that once third-party cookies were blocked universally, CPMs would decline across all platforms.
Fast forward to today, and mobile has become the proving ground for solutions replacing third-party cookies. First-party data and modern identity solutions have not only filled the gap but have also demonstrated superior performance in terms of data integrity and CPMs.
Publishers implementing identity solutions to anonymize and share data with advertisers aren't just maintaining their ad revenue—they're increasing it. 🚀 According to Ezoic data, domains utilizing identity solutions have experienced significant boosts in ad fill rates and user engagement. More importantly, they've attracted greater competition from ad bidders, directly leading to higher CPMs.
This isn't just a marginal gain; it's a substantial increase that can significantly impact a publisher's bottom line.
Why is this so crucial? Mobile traffic now accounts for over 60% of global web traffic. However, mobile browsers have traditionally been harder to monetize due to stricter third-party tracking restrictions. This challenge makes mobile the perfect environment for identity solutions to demonstrate their value.
The data is clear: mobile browsers, despite their limitations, offer some of the greatest opportunities for publishers who correctly apply identity solutions. It's not just about achieving higher CPMs; it's about enabling better targeting and more efficient ad placements that benefit both advertisers and publishers.
If you're a publisher who hasn't yet focused on implementing identity solutions—especially for mobile traffic—the time to act is now. The digital advertising market is shifting rapidly, and those who adapt will not just survive but thrive in this new environment.
Historically, early adopters who embrace change are the ones who reap the most significant rewards. There's no reason to believe this situation will be any different.
Key Takeaways for Publishers:
By taking these steps, publishers can unlock higher CPMs on mobile traffic and position themselves for sustained success in a post-cookie world.
Written By: Tyler Bishop
Tyler has been a digital publisher for over 20 years and is the CMO of Ezoic. He has written articles on web trends and innovation for for the Harvard Business Review, ESPN, Forbes, and AdWeek. He's a popular industry speaker and partnered with Google in 2016 to start Pubtelligence; the first major publishing event held at Google offices.
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