In near future, there is going to be drastic change in the digital advertising market. As we know, there are algorithms to track the behaviour and surfing history of the users. Google intends to stop such tracking by 2022. It is a pre-emptive move to address the increasing privacy concerns. As we know, the global advertising market is shared by Google and Facebook. This move of Google is likely to exert pressure on Facebook to follow suit.
In addition, the duopoly of Google and Facebook are inclined to share the revenues with publishers.
Google intends to block all third party cookies in Chrome, its popular browser on desk tops (not on mobile). These cookies are the usual means of tracking the internet users. They record the data about surfers tastes and interests. It enables the customisation of ads.
Facebook too uses third party cookies and plans to shift to other means. Firefox and Opera browsers block third party cookies by default. Apple has Intelligent Tracking Prevention Feature. It too blocks cookies. Thus Google may also be trying to retain traffic on its browser Chrome.
Another way of tracking surfers is the use of fingerprinting. Here every surfer is identified by a detailed analysis of the browser and OS. Facebook has shifted to Facebook Pixel. It is a first party cookie. It sends back data if the user clicks on ad while on Facebook. Google would also use similar first party means on its search engine and YouTube platforms.
Business is interested in targeting ads to clusters of consumers with similar interests — a type of segmentation. Google is studying this. It has developed FLOC or Federal Leasing of Cohorts to track clusters, rather than individuals. Thus the individual privacy gets protected behind a cluster or a crowd. Further extrapolation by algorithms could lead to predictions of other interests.
Digital advertising thrives by being contextual which print and conventional advertising cannot. Though there is going to be paradigm shift, it may not affect the duopoly as the other players have no capacity to access first party information that these two possess.