Digital Advertising's Future in a Cookie-less World

Changes in Data Collection Methods

Companies are enhancing data collection methods by leveraging advanced technologies. Amazon's AWS improves market survey efficiency and reduces errors, while Apple's on-device intelligence avoids personal data collection. Meta faces challenges due to Apple's data use policy changes, and Salesforce emphasizes the need for continuous data connection and reconciliation.

"We expect that this data processing application will increase the efficiency of our market survey collection and distribution process by 20% and cut down on 98% of the human errors associated with manual data entry." --- (AMZN, press release, 2024/07/10)

"For example, in 2021, Apple made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and other iOS developers' ability to target and measure advertising, which has negatively impacted, and we expect will continue to negatively impact, the size of the budgets marketers are willing to commit to us and other advertising platforms." --- (META, sec filing, 2024/Q1)

"Businesses need to build and maintain the connection, then reconcile data changes over time." --- (CRM, press release, 2024/04/25)

"So it's aware of your personal data without collecting your personal data. This is only possible through our unique integration of hardware and software and our years long investment in building advanced silicon for on device intelligence." --- (AAPL, event transcript, 2024/06/10)

"By leveraging the AWS cloud infrastructure, businesses can manage their targeted data collection activities seamlessly, allowing for faster extraction of critical information and ultimately deeper insights into corporate digital investigations and e-discovery." --- (AMZN, press release, 2024/06/26)

Effectiveness of Alternative Tracking Technologies

AI-driven technologies like smart bidding, Broad Match, and AI-based content recommendations are proving effective in targeting potential customers and improving ad performance, offering viable alternatives to traditional cookie-based tracking. These advancements enhance ad relevance, quality, and engagement, driving better results for advertisers.

"Right now, we already have AI systems that are basically effective enough at finding the right potential customers for an advertiser that we generally recommend that advertisers don't restrict how we can target ads, because we believe that we can basically, in most cases, deliver better results than the advertiser will be able to find themselves.But today, advertisers still need to produce their own creative and images and text. So I think that we're moving towards a world where advertisers one" --- (META, event transcript, 2024/05/29)

"We've talked about how solutions like smart bidding use AI to predict future ad conversions and their value in helping businesses stay agile and responsive to rapid shifts in demand, and how products like Broad Match leverage LLMs to match ads to relevant searches and help advertisers respond to what millions of people are searching for." --- (GOOG, earning call, 2024/Q1)

"The company's aggressive push into AI is not just about keeping up with technological advancements but is aimed at fundamentally transforming how users interact with its platforms, thereby driving future revenue growth through enhanced engagement and superior ad targeting. For investors, the key will be patience." --- (META, press release, 2024/05/10)

"rate at nearly a quarter of the cost. In addition to strengthening our ads products for customers, we continue to evolve our existing systems and products with improved models delivering further performance gains. In just six months, AI-driven improvements to quality, relevance, and language understanding have improved Broad Match performance by 10% for advertisers using Smart Bidding." --- (GOOG, earning call, 2024/Q2)

"With that said, we expect to see good opportunities to continue growing engagement across our products driven by the investments we made in AI based content recommendations, our ongoing video work and we also expect that we will continue to drive ads performance gains and continue to make our ads sort of more effective and deliver increasing value to advertisers." --- (META, earning call, 2024/Q1)

Role of Artificial Intelligence in Ad Targeting

AI is revolutionizing ad targeting by enabling advertisers to deliver results based on business objectives, engage customers across platforms, and improve ad performance through advanced targeting and measurement tools. Visual recognition technology and real-time ad adjustments based on user interest further enhance targeting precision and customer engagement.

"So I think that we're moving towards a world where advertisers one day are just going to give us a business objective and we'll just be able to go deliver results for them by creating the creative, finding the right customers, putting the messages in front of people and just end to end delivering results." --- (META, event transcript, 2024/05/29)

"And then there's Demand Gen. Advertisers are loving its ability to engage new and existing customers and drive purchase consideration across our most immersive and visual touch points like YouTube, Shorts, Gmail, and Discover." --- (GOOG, earning call, 2024/Q1)

"The increase in average price per ad was driven by an increase in advertising demand which we believe is primarily due to ongoing improvements to our ad performance from our ad targeting and measurement tools." --- (META, sec filing, 2024/Q1)

"By leveraging visual recognition technology, companies can create highly targeted and engaging ads, maximizing return on ad spend and driving customer engagement to new heights." --- (META, press release, 2024/05/08)

"For example, we are getting better at adjusting the placement and number of ads in real time based on our perception of a user's interest in ad content and to minimize disruption from ads as well as innovating on new and creative ad formats." --- (META, earning call, 2024/Q1)