The Myth of Microtargeting

Publishers moving to a contextual-only ad model are experiencing better sales and revenue. Will eliminating third-party cookies make the internet experience better?

Dr. Augustine Fou returns to the podcast to explore recent events surrounding third-party cookies.  These cookies enable the ad-tech industry to programmatically pinpoint an audience by collecting massive amounts of customer data.

But how effective is microtargeting based on this data?

Early this year, Dutch publisher Nederlandse Publieke Omroep stopped using third-party cookies and went to contextual-only advertising on their network of websites.  In doing so, they saw a 62% increase in ad revenue compared to the prior year! Even with their network not dominating their industries, the switch to contextual has created more revenue, more sales, and better clickthrough rates on the ads.

Is the narrative of highly targeted advertising a bunch of overpromised wishes? It seems so.  Eliminating the “mystery meat” in the middle and working closely with advertisers, publishers (and their advertisers) have seen much better results. Dr. Fou walks us through this trend and how returning to this model can save the ad tech industry.