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The Jason & Scot Show - E-Commerce And Retail News

Join hosts Jason “Retailgeek” Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Founder and Executive Chairman of Channel Advisor, as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.
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Mar 18, 2021

EP257 - Cookies, IDFA, and Commerce Deep Dive

Changes in mobile tracking (IDFA), and browser tracking (third party cookies) are likely to disrupt digital commerce. Here is everything you need to know.

Background

Privacy Law Changes

  • California Consumer Privacy Act of 2020 (CPRA)
  • California Consumer Privacy Act of 2018 (CCPA)
  • EU General Data Protection Regulation (GDPR)

Third Party Cookies

  • Safari (19% share) 3P cookies blocked as of March 2020
  • Firefox (4% share) 3P blocked as of Sept 2019
  • Chrome (64% share) will block 3P January 2022

Mobile Tracking (Digital License Plates for Mobile Users)

  • Apple Identifier for Advertisers (IDFA) – Goes from Opt Out to Opt In  Q1 2021
  • Google Play Services ID for Android (GPS ADID) – Still Opt Out

Use Cases that are impacted by IDFA/3P changes

  • Audience Activation and Retargeting
  • Frequency Capping and Suppression
  • Media Attribution
  • Audience Insights and Segmentation
  • Personalization

Alternative Solutions

  • 1P Walled Gardens (Facebook, Google, Amazon)
  • Real ID Systems (Trade Desk, Liveramp, Epsilon)
  • Clean Rooms
  • Cohorts – Google Privacy Sandbox: FloC (Federated Learning of Cohorts)

Impacted Businesses

  • Google – Biggest winner, built a business based on relaxed privacy standards, now pulling the ladder up behind them
  • Apple – See Google, but with a smaller share of browser market
  • Facebook – Lose ground to Google/Apple but gain on everyone else
  • Amazon – Winner. Forcing more ad dollars to Amazon walled garden
  • Shopify – Loser. Forcing Facebook to capture more commerce instead of referring to Shopify sites.
  • Publishers – Loser. Harder to make ad model work
  • Other Retailers – Loser for customer acquisition, slight benefit for retail media networks

Conclusion

Advertising rates go down which depreciates ad based business models (content sites and games). More businesses pivot from ad based to paywalls. Greater focus on Customer Lifetime Value (via subscription and platform approaches), more cleanrooms. Much harder for new businesses to challenge incumbent walled gardens.

Episode 257 of the Jason & Scot show was recorded live on Wednesday March 17, 2021.

http://jasonandscot.com

Join your hosts Jason "Retailgeek" Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Co-Founder of ChannelAdvisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.

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