Advertisers don't want to overpay for publisher audience data

The process of rejecting third-party cookies is in full swing, and advertisers have already expressed their unwillingness to purchase user data that publishers are willing to share. One of the publishers, speaking on condition of anonymity, stated that they typically add a two-dollar premium to their regular CPM for using their own user data or the option of contextual targeting. However, it is currently extremely difficult to sell inventory with such a markup. Digiday notes that this is slightly higher than a year ago when a similar markup was one and a half dollars.

«We believe that due to the rejection of third-party cookies, premiums for 1p cookies or contextual targeting should not increase. The premium has always ranged from 0 to 10%. We see no reason to change the established policy» - said an anonymous source on the side of the advertising agency.

«It's foolish to spend more money on targeting and data than the cost of placing the ad itself», said Holly Dunn, executive vice president of procurement at Havas agency.

Dunn noted that a $2 markup to CPM could be too high for certain categories of advertisers. The procurement team on the agency side typically sets baseline levels for such expenses in media planning.

An anonymous publisher revealed that their platform is trying to move away from CPM-based pricing. If an advertiser is only concerned about achieving their KPI, then targeting such an audience will be expensive. According to the publisher, the advertiser will then pay more than $2. Applying new tools to segment such an audience is indeed expensive, but such data is usually accurate enough to increase its value.

A representative of one of the AdTech companies stated that such an approach makes sense: «Publishers are concerned about how much they can earn from advertising without harming the user experience». In such a case, additional audience data that helps sell regular ads for more makes sense.

However, Dunn (representative of the advertising agency) said that her team would not consider data from the publisher's side, as its use requires integration costs. Agencies already have ready-made industrial solutions for such segmentation.

Not all publishers increase their CPM for user data and contextual targeting. Some believe that such «bonuses» are an advantage that allows them to attract more ad buyers. Especially at the initial stages of traffic sales.