Rise in CPMs for cookieless advertising inventory – competitive dynamics redefining the market.

Peter Day, CTO of Quantcast, reveals insightful data from the latest tests on cookieless advertising inventory, conducted in collaboration with leading advertisers. The analysis shows that the prices of these resources have increased by 40% year-over-year, indicating a significant shift in the perception and valuation of cookieless advertising space.

Quantcast, a global leader in adtech with a programmatic DSP driven by AI that can predict the audiences most likely to make purchases, noted that cookieless resources, which were 14 times cheaper a year ago, are now only 2.4 times cheaper compared to traditional cookie-based resources. This signifies a dynamic increase in the interest and value of these resources in the market.

Almost half of the advertisers working with Quantcast use cookieless resources in over 20% of their advertising purchases, demonstrating widespread adoption and integration of this form into marketing strategies. These campaigns, based on the analysis of over 6,000 cases, reflect a changing approach to advertising investments.

Quantcast’s initial tests with clients began 18 months ago, with the first six months dedicated to educating and adapting advertisers to the new reality. “We are observing a rise in CPMs, but it should be noted that initially, the level was very low. Starting a year ago, the price for high-quality exposure was extremely attractive due to limited competition,” Day emphasizes. This phenomenon is changing with the intensifying competition for advertising space, although competition in the cookieless segment is still less than in traditional cookie-based resources.

When asked about the possibility of reducing CPMs, Day points out that it is a process requiring time, with a key factor being building publishers’ trust in new methods of measuring effectiveness. “Testing and learning through short-term conversion cycles is our path to better understanding and optimization,” says Day. “We have extensive CPA data for short conversion cycles, which gives us unique insights into campaign effectiveness across various sectors.”

The cookieless advertising market shows potential to be the second most effective method of reaching audiences, thanks to lower competition and the ability to purchase resources at lower prices. Nevertheless, cookies remain the most effective form.

Day highlights the potential for further development and optimization, mentioning a 13% increase in efficiency following the introduction of an updated model in November. “We expect the upward trend to continue over the next six to twelve months,” he predicts.

The conclusion of the Yokohama Tire case study analysis, where significant reductions in CPA and increased efficiency were achieved through a cookieless campaign, demonstrates that the adoption of new technologies and strategies can bring measurable benefits. The introduction and optimization of cookieless resources are key strategic elements in the evolving advertising space, enabling brands to reach their audiences more effectively and maximize ROI.