The Future of Digital Advertising

Are you prepared for an identity-constrained future?

The Situation

The digital landscape is changing to increase
consumer privacy and data control.

The Impact

This will massively alter how advertisers target,
measure and optimize campaigns.

Advertisers want to identify their audience across devices and channels to deliver relevant experiences.

But in a way that respects consumer privacy and choice.

82%

of consumers are concerned about how companies are gathering and using their personal data.

BuT

83%

understand that sharing their data has perceived benefits.

IPG, The Person Behind the Data, Global, 2022.

The Good News

What's good for consumers is good for advertisers.

The industry is moving towards a more
privacy-centric approach through:

1

Global Privacy Laws

2

TECHNOLOGY CHANGES

Cookies are just the half of it.

Global Privacy Laws

Growing regulation is changing the way data can be collected and used, with governments worldwide taking action to protect consumer privacy.

Laws in effect

2018 Europe

General Data Protection Regulation (GDPR)

2020 California

California Consumer Privacy Act (CCPA)

2020 Brazil

Brazilian General Data Protection Law (LGPD)

2023 USA

California Privacy Rights Act (CPRA), along with other state privacy laws (VA, CO, CT, UT) takes effect.

Future Laws

Legislation is being discussed in OH, MA, MI, NJ, and PA. APAC is coalescing around GDPR ideas, and enforcement is increasing.

Platform Changes

Limiting user tracking across browsers

Safari

Deprecated cookies in

2018

Current market share

18%

Firefox

Deprecated cookies in

2019

Current market share

3%

Microsoft Edge

Deprecated cookies in

2020

Current market share

5%

Chrome

Plan to offer more privacy controls in

2025

Current market share

65%

Source: https://gs.statcounter.com/browser-market-share#monthly-202407-202407-bar

Platform Changes

App tracking transparency

Apple's iOS 14.5 privacy updates enable consumer to opt-out of tracking across apps and websites.

2021

Apple’s iOS 14.5 privacy update gave consumers more control over which apps use their data.

~75%

of iOS users have opted out from app tracking in the U.S. (no IDFA available).

1 https://www.businessofapps.com/data/att-opt-in-rates/

20??

Google will follow in Apple’s footsteps and roll out its “Privacy Sandbox” to Android, eliminating cross-app tracking.

What this means for you

Global privacy laws and platform changes disrupt one-to-one targeting, frequency capping and user-level measurement across digital environments.

With change comes opportunity. Are you prepared?

The decline of addressable audiences

The future of advertising will see the majority of supply become “non-addressable” due to lack of identifiers or consent.

Known

Addressable

Digital environments where we can apply ID solutions to recognize the user on a one-to-one basis.

Unknown

Non-addressable

Digital environments where we can’t recognize the user on one-to-one basis due to a lack of user identifiers (because of privacy laws e.g. user consent, or technology changes).

Ad opportunities without identity

TODAY

30%

of inventory is
non-addressable.

By 2025,

60%

of inventory will be
non-addressable.

Estimation based on iOS 14.5 data and web browsers market share.

Market Dynamics

Addressable is not the be all, end all

As addressable supply shrinks, competition will increase. In turn, prices will go up and ROI will go down.

Non-addressable offers competitive advantage

With more supply, prices are lower, meaning greater ROI.

A single ID is not enough. Prepare with an integrated approach.

Solutions that advertisers should incorporate in their strategy based on inventory.

By 2025, marketers will need to combine a range of solutions across targeting, activation and measurement to reach the full potential of their media strategy.

TARGETING

ADDRESSABLE Inventory

Solutions based on persistent identifiers: user‑level targeting

NON-ADDRESSABLE Inventory

Contextual targeting

Ad delivery based on the website’s content, not the audience.

Platform solutions

Advanced targeting solutions based on browsers and platforms e.g. Google Topics.

Seller defined audiences (IAB)

Publishers’ first-party data matched against advertisers’ for targeting without needing a unique identifier.

Modeled audiences

Inferred audiences in ID-less environments leveraging machine learning and known users.

Activation

ADDRESSABLE Inventory

Solutions based on persistent identifiers: omnichannel, user-level frequency capping

NON-ADDRESSABLE Inventory

Modeled frequency capping

Trained frequency models applied to “unknown” audiences to mitigate ad overexposure and respect frequency settings.

Publisher-level frequency capping

Management and control of frequency capping on a publisher-level.

Measurement

ADDRESSABLE Inventory

Solutions based on persistent identifiers: Omnichannel attribution and user-level measurement

NON-ADDRESSABLE Inventory

Modeled measurement

Inferred conversions in ID-less environments leveraging machine learning and known audiences.

Platform solutions

Advanced targeting solutions based on browsers and platforms: SKAdnetwork.

Future-proof your business with Yahoo

Our integrated approach to identity enables you to deliver relevant experiences across every consumer's screen, no matter how the industry changes.

Yahoo
ConnectID

Addressable

Identity-based

Yahoo ConnectID uses consent-based, first-party data to bring audiences to life in a world without cookies.

Next-Gen
Solutions

Non-addressable

Identity-less

When identity isn't available, our Next-Gen Solutions leverage billions of real-time signals to infer high-quality audiences.

Contact Us

We're here to help. Tell us what you need and we'll connect you with the right people.

Yahoo has partnered with Programmatic Mechanics to offer the Yahoo DSP as a managed service solution to clients. The Programmatic Mechanics team can provide you access to your account and ensure you are able to take advantage of the powerful targeting and inventory solutions available via the Yahoo DSP. We encourage you to provide further information at the link below and a representative will contact you soon.

Get in touch

MIQ

Yahoo has partnered with MiQ to provide best-in-class managed services to clients. MiQ has deep expertise in activating all of the features and benefits of the Yahoo DSP and its unique capabilities. We encourage you to provide further information at the link below and a representative will contact you soon.

Get in touch

Now, you can access Yahoo’s high-quality ad supply in Taboola Ads, Taboola’s industry leading, AI-powered advertising platform.

Get in touch
*Required
Shield

Successful

Oops! Something went wrong while submitting the form.