Google's Cookie Monster: Why The Tech Giant's U-Turn Is Making Waves In Ad Industry
Portfolio Pulse from Surbhi Jain
Alphabet Inc (GOOG) has decided to retain third-party cookies in its Chrome browser, reversing its previous stance on phasing them out. This decision has significant implications for the digital advertising industry, particularly benefiting companies like The Trade Desk Inc (TTD), Criteo SA (CRTO), and PubMatic Inc (PUBM). The move is seen as a strategic effort to maintain Google's dominant position in the digital ad market while addressing regulatory and user privacy concerns.
July 23, 2024 | 3:46 pm
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Criteo SA (CRTO) saw its stock jump 9% following Google's decision to retain third-party cookies. This move alleviates concerns about a potential $140-$160 million revenue hit in 2025 from the anticipated cookie phase-out.
Retaining third-party cookies alleviates significant revenue concerns for CRTO, which had been preparing for a cookie-less future.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc (GOOG) has decided to retain third-party cookies in its Chrome browser, reversing its previous stance. This move is seen as a strategic effort to maintain its dominant position in the digital ad market while addressing regulatory and user privacy concerns.
Retaining third-party cookies helps Google maintain its dominant position in the digital ad market, which is crucial for its $237 billion ad revenue. This decision also aligns with its broader strategic objectives.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
PubMatic Inc (PUBM) is positively impacted by Google's decision to retain third-party cookies, as it removes uncertainty and allows the company to continue leveraging third-party data for ad targeting.
The decision to retain third-party cookies removes uncertainty for PUBM, allowing it to continue leveraging third-party data for ad targeting.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
The Trade Desk Inc (TTD) saw a modest 1% increase in its stock price following Google's decision to retain third-party cookies. While this removes a market overhang, it also diminishes the potential upside from TTD's first-party data-based common ID system.
The removal of the cookie-related overhang is positive for TTD, but it also reduces the potential upside from its first-party data-based common ID system.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70