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. Transcript Jason: [0:24] Welcome to the Jason and Scott show this is episode 257 being recorded on Wednesday March 17th 2021 I’m your host Jason retailgeek Goldberg and as usual I’m here with your co-host Scot Wingo. Scot: [0:41] Hey Jason and welcome back Jason Scott show listeners. Jason has you know when we look at our analytics and based on feedback we get from listeners some of our most popular shows over the years are where we get super-dee-duper geeky and we go really deep on one topic. We call those with what I think is a genius of marketing we call those deep Dives. Jason: [1:05] Jason and Scot show Deep dive. Scot: [1:18] So we have been I’ve been reading a ton about a big change coming to the overall ecosystem of advertising and it’s initiated by Apple and it’s called idfa. And as you know I read a lot of Wall Street stuff and some of the Wall Street folks are freaking out because they’re basically saying this is going to be big and the world’s not paying enough attention. And you know in my mind I’m kind of that sad world that doesn’t really impact e-commerce but then I started to see it getting really noisy around the impact to folks on the converse side too. So I looked around and called everyone I know and none of them were experts on the so I last ditch effort I said maybe my podcast co-host knows a little bit about this, seeing as he works for one of the world’s largest ad agencies and lo and behold I was right you do you are a Ninja on this. So I know enough about this topic to have a lot of questions but I have no answers so, we’re going to kind of flip it a li