The migration towards independent adtech

It would be difficult to argue that adtech isn’t going through major changes

From the antitrust investigations and ever-evolving rules and regulations that are rife among GAFA, the interest and migration towards independent tech are on the rise. The phase-out of third-party cookies by Google has helped bolster this, but concerns over anti-competitive practices and the desire to take back control have also inspired industry players to begin weighing their options.

This is particularly true for publishers looking beyond the walled gardens to take back control of their data assets and inventory; the ongoing changes in the adtech ecosystem have impacted their core business. From Apple’s ATT framework released last year to stricter enforcement of GDPR, it's safe to say it hasn’t always been easy for publishers. These events have left them with little choice but to adapt and give up some control.

However, there is a growing consideration among the entire industry about migrating towards independent adtech. The implementation of independent providers as the secondary adserver of Régie 366 and Le Monde is a good indication of this.

Weighing up the cost of big tech

There is no question that dominant tech actors have a certain level of control over the programmatic ecosystem. Ownership of browsers, buy-side and sell-side technologies, and other vital platforms make them indispensable in many cases. So when they are in trouble or decide to make changes, it affects everyone. While this dependency gives a cushion of convenience, it also stripped many industry players of flexibility and control over their assets.

We can circle back to Apple’s ATT Framework for iOS which changes the way applications collect and share data. This heavily impacted tracking and led to a decrease in publisher revenue from iOS users. This was a major move that no doubt caused waves in the industry.

Another reason players are really weighing the cost of big tech can be attributed to the ongoing legal battles Google is facing - such as the antitrust lawsuit out of the US and the large fines from the French Competition Authority due to non-compliance. This has led to further depreciation of publisher patience and trust.

One of the biggest and most impactful changes to the ecosystem is of course Google’s decision to eliminate third-party cookies. While the industry has time to find alternatives, Google also confirmed it wouldn’t support alternative IDs and cross-site tracking, and has continued to change its solutions, most recently announcing the shift from FloC to Topics. This has left many in a state of flux and uncertainty.

With the continued unease over these issues with big tech, many industry actors have begun to weigh the cost their walled gardens ultimately bring to the ecosystem. It is becoming increasingly clear that taking back control of their technology may be key to publisher success in the future. Unfair practices and compensation have led to a climate of uncertainty, and many publishers are looking for more transparent, reliable solutions.

Enter independent adtech

To achieve this success, publishers have begun to embrace transparent, flexible, and independent technologies to help leverage their first-party audience data, contextual capabilities, and alternative IDs in the face of the ever-moving parts of big tech. Thanks to all of the independent players on the scene right now, they have never been in a better position to do it.

For example, the publisher Vocento recently placed an entirely independent adserver with a natively integrated SSP at the heart of their advertising strategy. This approach gives them full control over data ownership and revenue streams, without the murkiness of the walled gardens. They can monetize their ad inventory and make full use of their first-party data while benefiting from the enhanced transparency independent actors provide.

Publishers who adopt this approach can more accurately pinpoint the value for their buyers, and price their inventory accordingly. Independent tools also allow for a clearer understanding of pricing, which is crucial in the face of walled gardens that continue to be faulted for concealing true costs. Overall, the level of transparency independent solutions provide strengthens the effectiveness of their monetization strategies.

While this may not be feasible for all publishers, implementing an independent adtech stack as a secondary option is also a reliable solution for those who want to diversify in order to mitigate risk and protect revenue. This is especially true in the instances where walled gardens have acted as an adblocker when it comes to non-consented traffic. Independent players help unlock additional value by providing buyers a path to targeting non-consented traffic through performance and contextual targeting, which help ensure ad delivery.

Overall, the shift towards independent adtech provides hope and encouragement that the industry is moving closer towards a better environment that fosters transparency, efficiency, and flexibility, and where all parties get their fair share.