Data: Advertising budgets impacted by privacy legislation & signal loss

Nearly all (95%) marketing professionals are expecting continued signal loss or privacy legislation this year and in the future, new data has revealed.

According to Interactive Advertising Bureau’s (IAB) ‘State of Data 2024: How the Digital Ad Industry is Adapting to the Privacy-by-Design Ecosystem‘, 82% of those surveyed revealed the makeup of their organisations has been impacted by signal loss.

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The findings also revealed ad spending that features first-party data and engages audiences at scale is being prioritised, with 89% of ad buyers reporting a shift in message personalisation strategies, ad investment costs (87%), and over three-in-four cite selection changes in media channels (81%) and KPIs (79%), along with more seller-direct deals.

The data added ad buyers are shifting budgets to connected TV, retail media, search, and social networks which rely less on cookies.

Instead, it provides access to first-party data and precise targeting containing embedded measurements.

This comes as 55% of those surveyed stated it to be harder to track conversions overall, post-view conversions (52%), attribute campaign/channel performance (55%), measure ROI (55%), make optimisations (50%), and measure frequency (50%) and reach (47%).

Additionally, the study found that 71% of marketers are currently or planning to grow their first-party datasets, nearly double the rate of just two years ago (41%).

IAB CEO, David Cohen, said: “The meaningful investments being made are proof positive of the industry’s commitment to a privacy-first orientation.

“Executives are taking notice and funding the right initiatives for the next stage of industry growth.”

IAB, VP Measurement, Addressability & Data Center, Angelina Eng, added: “To tackle data quality challenges, it’s crucial for brands, agencies, and publishers to continue to adopt innovative analytical methods including Artificial Intelligence (AI), machine learning, and media mix modelling that are less dependent on tracking signals and third-party cookies.

“The industry’s embrace of privacy-by-design is the right thing for the industry and consumers alike. But if small independent publishers aren’t protected, the vibrant, independent open web that consumers love is at serious risk.”