{"id":3185,"date":"2020-07-26T10:05:11","date_gmt":"2020-07-26T14:05:11","guid":{"rendered":"https:\/\/new.jeffgreenfield.com\/?p=3185"},"modified":"2020-07-26T16:31:38","modified_gmt":"2020-07-26T20:31:38","slug":"susquehanna-securities-ccpa-google-chrome-privacy-briefing","status":"publish","type":"post","link":"https:\/\/jeffgreenfield.com\/susquehanna-securities-ccpa-google-chrome-privacy-briefing\/","title":{"rendered":"Susquehanna Securities &#8211; CCPA &#038; Google Chrome Privacy Briefing"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kd35wobv-d0f8d732644466cf71dad084cd74275a\">\n#top .av-special-heading.av-kd35wobv-d0f8d732644466cf71dad084cd74275a{\npadding-bottom:20px;\n}\nbody .av-special-heading.av-kd35wobv-d0f8d732644466cf71dad084cd74275a .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kd35wobv-d0f8d732644466cf71dad084cd74275a .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kd35wobv-d0f8d732644466cf71dad084cd74275a av-special-heading-h2  avia-builder-el-0  el_before_av_textblock  avia-builder-el-first '><h2 class='av-special-heading-tag'  itemprop=\"headline\"  >Susquehanna Securities &#8211; CCPA <span class='special_amp'>&amp;<\/span> Google Chrome Privacy Briefing<\/h2><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-4t8zs1-2f9cf6cfb7c3479884f43032c4ad5f4e\">\n#top .av_textblock_section.av-4t8zs1-2f9cf6cfb7c3479884f43032c4ad5f4e .avia_textblock{\nfont-size:16px;\n}\n<\/style>\n<section  class='av_textblock_section av-4t8zs1-2f9cf6cfb7c3479884f43032c4ad5f4e '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>Google\u2019s recent data privacy changes and the potential impact to ad tech was the topic of a conference call held with Shyam Patil, Senior Equity Analyst, Susquehanna Securities and C3 Metrics Co-Founder, Jeff Greenfield.<\/p>\n<p>These changes actually started on April 16, 2016, when the General Data Protection Regulation (\u201cGDPR\u201d) was born. GDPR is a regulation in EU law on data protection and privacy for all individual citizens of the European Union (EU) and the European Economic Area (EEA). When implemented on May 25, 2018, GDPR required significant changes by both Google and Apple to comply.<\/p>\n<p>Google first made privacy changes by eliminating their unique identifier from all data feeds and removal of all third-party tags from YouTube. This change was not a problem for C3 Metrics, as Google and C3 Metrics have been partners since 2010. Google created a privacy-safe solution called Ads Data Hub (ADH) and asked C3 Metrics to become the first attribution vendor certified. The C3 Metrics direct integration with ADH began shortly after GDPR was enacted in late 2016 and to this date, C3 Metrics is the only independent attribution vendor certified worldwide. Apple made changes to the Safari desktop browser called \u201cITP\u201d. The result of this change was to block the use of all third-party cookies, which essentially would stop ad targeting. This change was not a problem for C3 Metrics, as C3 Metrics does not target users for advertising, has never relied upon third-party cookies and migrated towards a proprietary, cookie-less, non-fingerprint solution several years prior.<\/p>\n<p>Unlike Apple, Google was unable eliminate all third-party cookies, as their revenue is 95% dependent on advertising. Google recently announced that Chrome browser users will now have the ability to control privacy settings. Chrome users will have an interface to manage and remove cookies, but only if they want to. Based on industry experience, when a user is given the ability to control cookies, very few actually make changes or opt out. Google also discussed the removal of the ability to fingerprint. There are a number of companies who were pushing the envelope in the way they extract data from Google and utilize it for targeting. This change was not a problem for C3 Metrics and will not change our ability to perform attribution services.<\/p>\n<p>Overall, this is a very positive change for C3 Metrics and the industry. Google is a valued partner of C3 Metrics and we applaud their efforts towards protecting both consumer privacy and digital advertising.<\/p>\n<\/div><\/section>\n<div id=\"av_player-1\" class=\"av-player av-player-container av-kd35saef-95b079c56dbf5f654aba974ec99305bc avia-playerstyle-classic av_player-1  avia-builder-el-2  el_after_av_textblock  el_before_av_textblock  av-player-hide-playlist first avia-playlist-hide-cover\"><div class=\"av-player-player-container\"><!--[if lt IE 9]><script>document.createElement('audio');<\/script><![endif]-->\n\t<div class=\"wp-playlist wp-audio-playlist wp-playlist-light\">\n\t\t\t<div class=\"wp-playlist-current-item\"><\/div>\n\t\t<audio controls=\"controls\" preload=\"none\" width=\"1478\"\n\t\t\t><\/audio>\n\t<div class=\"wp-playlist-next\"><\/div>\n\t<div class=\"wp-playlist-prev\"><\/div>\n\t<noscript>\n\t<ol>\n\t\t<li><a href='https:\/\/jeffgreenfield.com\/wp-content\/uploads\/2020\/07\/Susquehanna_Q12019_Conference_Call.mp3'>Internet Analyst Shyam Patil Q1 2019 Conference Call<\/a><\/li>\t<\/ol>\n\t<\/noscript>\n\t<script type=\"application\/json\" class=\"wp-playlist-script\">{\"type\":\"audio\",\"tracklist\":true,\"tracknumbers\":true,\"images\":false,\"artists\":true,\"tracks\":[{\"src\":\"https:\\\/\\\/jeffgreenfield.com\\\/wp-content\\\/uploads\\\/2020\\\/07\\\/Susquehanna_Q12019_Conference_Call.mp3\",\"type\":\"audio\\\/mpeg\",\"title\":\"Internet Analyst Shyam Patil Q1 2019 Conference Call\",\"caption\":\"\",\"description\":\"\\\"Internet Analyst Shyam Patil Q1 2019 Conference Call\\\" by SIG Susquehanna. Released: 2019.\",\"meta\":{\"artist\":\"SIG Susquehanna\",\"year\":\"2019\",\"length_formatted\":\"1:03:00\"}}]}<\/script>\n<\/div>\n\t<\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kd35tj57-4385a84137494a89e733b0d108343806\">\n#top .av_textblock_section.av-kd35tj57-4385a84137494a89e733b0d108343806 .avia_textblock{\nfont-size:16px;\n}\n<\/style>\n<section  class='av_textblock_section av-kd35tj57-4385a84137494a89e733b0d108343806 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>Shyam Patil<br \/>\nHello, Good afternoon everyone. I\u2019m Shyam Patil, the Internet Analyst at Susquehanna. Welcome to our conference call with Jeff Greenfield, Founder and COO at C3 Metrics. To talk about Google\u2019s recent data privacy related changes and the potential impact to ad tech. Thanks Jeff for joining us today. We\u2019re going to go through a series of questions for about 45 minutes to an hour. If anyone in the audience has any questions, please feel free to email them over to me during the call and we\u2019ll do our best to address them.<\/p>\n<p>Shyam Patil<br \/>\nJeff, before we get into the questions, could you provide just a quick intro of C3 Metrics and where you guys fit into the overall advertising ecosystem?<\/p>\n<p>Jeff Greenfield<br \/>\nYeah, thank you so much. At C3 Metrics we sit kind of in the middle of everything. We\u2019re essentially Switzerland. Because we live in the measurement space and we\u2019re one of the few remaining independent measurement companies. The way that I kind of look at what we do and the way we explain it to folks is that we\u2019re kind of like very sophisticated auditors. We come in almost like the FBI at first and we tap all the communication lines. And so we hook up our technology where we\u2019re capturing data in real time on the digital side. We\u2019re capturing all of the spend that an advertiser will do, and then any type of CRM files that go back and forth. So we\u2019re capturing all of this data, we start collecting it.<\/p>\n<p>Jeff Greenfield<br \/>\nWe then go in and purify it in our own data cloud and then we apply machine learning and then we\u2019re able to look backwards and tell an advertiser specifically what they did, where they over-invested and areas where they under-invested. Where they could\u2019ve gotten more bang for their buck. More ROI. But unlike an audit where you can only look backwards, once the technology is hooked up and ready to roll, then a marketer and finance can log into a dashboard environment. Where they can look every single day, every single week, and see how their current marketing campaigns are progressing. Are they on plan, are they where they over-invested, where they under-invested. How did that direct mail campaign work. How did our TV campaign work, we\u2019re running three different TV spots. Which one is having the biggest impact on revenue, and most importantly in finance, what is our velocity to revenue like currently compared to where it was last year and what do we need to change to get more revenue right now, in order to hit our numbers.<\/p>\n<p>Jeff Greenfield<br \/>\nThat\u2019s essentially what C3 does and we work across all of the different ecosystems. What\u2019s unique to this world of measurement is that there\u2019s always been holes. There\u2019s always been things that you can\u2019t measure. But because of the changes that have occurred in terms of how consumers look at media, interact with media, with all these digital footprints, you\u2019re able to, even for things you can\u2019t measure, you can see little imprints of it. And then you can use that to accurately determine what the overall impact is to revenue.<\/p>\n<p>Shyam Patil<br \/>\nExcellent, okay. Great. Very helpful. And just, which ecosystems do you measure across. I imagine you guys touch Google, Facebook \u2026 I guess who do you touch or is there anyone that you don\u2019t touch or have visibility into?<\/p>\n<p>Jeff Greenfield<br \/>\nNo, we have visibility into everyone. And the reason for that is we come at it from unlike a provider that\u2019s just collecting data, where our job is to sell data. We come at it as an extension of the advertiser themselves. Since we come in from the purview of the advertiser, we start with what they call their KPI\u2019s, their key performance indicators. Whether they\u2019re sales online, leads online or sales in stores. We can get that final action which is hidden from many people in the data world and then we can look at those little footprints. Those clicks that come to their website, the impressions that happens in the ads. So in that instance we\u2019re able to look across the entire digital ecosystem and also the entire traditional ecosystem as well too.<\/p>\n<p>Jeff Greenfield<br \/>\nSo there\u2019s nothing that\u2019s missed because we fit into that kind of independent perspective and work on their behalf.<\/p>\n<p>Shyam Patil<br \/>\nExcellent, great. That\u2019s very helpful. So I guess we can jump into the questions now. I guess with, we can start with just Google and GDPR. Just from your standpoint, from what you\u2019ve seen, what have been the key changes Google\u2019s made in response to GDPR. And what\u2019s been the impact thus far?<\/p>\n<p>Jeff Greenfield<br \/>\nWell the biggest change that they made and they let everyone know about this, probably about it\u2019s going on a little over a year now. That they were going to be eliminating third party tags from part of their ecosystem. Initially it was going to be YouTube. So what that means is, is that in order for us as an independent provider of measurement to be able to tell when a YouTube video is actually viewed, and someone interacts with it. A number of years ago when YouTube first came out, we provided Google with a tag, essentially a piece of code that would essentially ride piggy backs. Anytime an ad would run on behalf of one of our advertisers, a piece of code would show up from C3 Metrics so we could accurately measure it.<\/p>\n<p>Jeff Greenfield<br \/>\nBut what\u2019s happened over a period of years is that the number of people that are consuming YouTube inventory on mobile, has gone up dramatically. And mobile always provides somewhat of a difficulty in terms of keeping that consumer journey intact. The change that Google made was to remove third party tags, so no third party tags, no independent measurement at all on YouTube. And what they did is they created an alternative environment called ads data hub. What that means is that we\u2019re able to get the same data that we had before, the only difference is, is that instead of our tags being out there we now have to query Google after the fact in order to get at that data.<\/p>\n<p>Jeff Greenfield<br \/>\nSo it created a scenario where we had to put resources to be able to get the same data that we\u2019ve always been able to get. It was a significant shift that occurred there. That was one change, was getting that data into ads data hub from YouTube. The other change was that Google provides unlike Facebook, where Facebook only has ads on Facebook, the ads that Google has is across pretty much the entire digital ecosystem. Through their Google display network that they have. Also on top of that, a significant, in fact I would say the majority of advertisers are utilizing Google\u2019s ad tech products, specifically their ad server and in some instances their DSP, or their trading desk to actually purchase ads.<\/p>\n<p>Jeff Greenfield<br \/>\nPart of that, and that\u2019s the whole double click environment. So what\u2019s been happening throughout a number of years is that whenever you buy an ad and you\u2019re using one of these double click ad tech products, there\u2019s an identifier that goes out, called the double click ID. And so essentially what you could do is if you\u2019re an advertiser, an agency, you could buy ads, you\u2019d see a double click ID and then when somebody when does a conversion or a KPI on the advertiser\u2019s website, you can have another double click tag there and it would let you know which of those people that got exposed to an ad, actually did that conversion event that you wanted them to do. So if you show, if an ad got exposed to someone with a double click ID of 1-2-3-4. You could then run a double click report, a conversion report that would say, 1-2-3-4, get a conversion on this date and time.<\/p>\n<p>Jeff Greenfield<br \/>\nWell that all of sudden changed come May because what Google realized is that by giving out those double click ID\u2019s, that would somewhat be in violation of GDPR because the advertiser knows how they\u2019re targeting people and then if they know who\u2019s converting that couldn\u2019t be traced back and that would be in violation. What happened is, is that at some point in the middle of May, I think it was around May 21st, when advertisers and agencies and other companies went to pull their double click reports to look at those double click ID\u2019s, instead of double click ID\u2019s they were all zeros. So the other change that Google made in response to GDPR was that double click ID\u2019s would no longer be available for any users of any of their ad technology. They removed it completely because it could put them in jeopardy in terms of GDPR.<\/p>\n<p>Jeff Greenfield<br \/>\nThose are the two key changes that they\u2019ve made in response. From an impact, it\u2019s been very significant. For a lot of advertisers, especially on the YouTube change when they rolled out this ads data hub, and remember you\u2019re going back over a year. It was a year ago that they said to everyone, \u201cHey, we\u2019re making this change. It\u2019s not going to be any YouTube videos.\u201d Then they came back again last November and said, \u201cWe\u2019re serious.\u201d And at first they told us the change was going to happen in March but they didn\u2019t get enough compliance so they pushed it up til May. You see they wanted to make this happen months before GDPR came in. But there wasn\u2019t enough people that were getting on board with it. And so what they made announcement was I think in April, was that any new ads starting May 1st that were going to be submitted to Google for YouTube that had these third party tags in them, if it was a new advertisement, they were not going to accept it. That was the first thing.<\/p>\n<p>Jeff Greenfield<br \/>\nAnd then the second thing was that May 21st, so remember GDPR went into effect May 25th. May 21st, any ads that were currently running with third party tags would be stopped. And then May 25th is when GDPR happened. And so when that announcement started in the beginning of May, most people in the ad tech community started freaking out, \u201cwell what do you mean you\u2019re going to stop taking the tags.\u201d And it\u2019s like, Google\u2019s like, \u201cHey, we\u2019ve been telling everybody and all our partners about this for a year.\u201d And then they announced that every partner had an opportunity to participate in this ad data hub. It turned out that in May, worldwide, there\u2019s only five partners that participated in ads data hub. I think it\u2019s now up to seven. So were almost a month into this and there\u2019s still only seven partners.<\/p>\n<p>Jeff Greenfield<br \/>\nC3 Metrics was one of the first five, in fact we\u2019re the only independent measurement company that\u2019s involved in ads data hub. And the reason that, you would think that after such a drastic change when you think about the amount of inventory that trades on YouTube, you would think like, \u201cWhy all of a sudden isn\u2019t like every ad tech company, every measurement company jumping on board on this?\u201d And the reason for that is because it is a significant shift in terms of how you get your data. It requires a change in work flow and requires significant resources both on our side and then also on the Google side.<\/p>\n<p>Jeff Greenfield<br \/>\nLuckily for us we responded to Google very early on. They provided us with a dedicated team and we\u2019ve been meeting with them every week now for almost a year. And there\u2019s still work that is to be done. Every week to keep this going. It\u2019s a significant amount of work, that\u2019s why people haven\u2019t jumped on board. Right now you have I would say the majority, a significant number of advertisers if they\u2019re not in the Google ecosystem and they were measuring another way with YouTube, they\u2019re completely running blind right now. That\u2019s one big change. The other big change on the double click ID side, is that a significant number of ad agencies were utilizing double click ID\u2019s as a way to report back to their advertisers on the effectiveness of media.<\/p>\n<p>Jeff Greenfield<br \/>\nYou see this idea of independent measurement has been around for a long time but agencies represent that they\u2019re doing best practices. And advertisers expect that that\u2019s kind of built into the price that you pay. You\u2019re paying for this media, we expect that you\u2019re going to do what\u2019s best because they have a fiduciary duty to spend the money the best way. A lot of agencies have been utilizing these double click ID\u2019s, they have an internal advance analytics team that are helping them do that. In fact a lot of advertisers have their own analytics team that have been leveraging double click and these double click ID\u2019s to build out incredible reports and all of a sudden in May, they were caught dead in their tracks. So there\u2019s a lot of marketers out there that here we are, we\u2019re about three to four weeks in, it\u2019ll be four weeks in the end of this week, that don\u2019t have reporting.<\/p>\n<p>Jeff Greenfield<br \/>\nThat\u2019s pretty significant especially as we approach the end of the month because come the beginning of July, Finance is going to wanna know how did we look in June and a lot of folks are not going to have any answers. And their excuse is going to be, \u201cWell, you know those changes in Google.\u201d So it\u2019s going to be interesting to see the changes that happen as a result of that.<\/p>\n<p>Shyam Patil:<br \/>\nGreat. That was very helpful and thorough. I guess I have some follow up questions on ads data hub and the double click ID. On that ads data hub, I know you\u2019re still working to extract all the data efficiently. But is there any less data available or will there be any less data available to measure ROI and effectiveness of ads once everything is set up properly?<\/p>\n<p>Jeff Greenfield:<br \/>\nWell, you know I mean, yes and no. So here\u2019s the thing is that when you start looking at independent measurement overall, there\u2019s kind of and I\u2019m going to give you kind of walk around to get you specifically to your answer. So you go back 15 years ago, the way that measurement was done on the marketing side of things is something known as a marketing mix model. Which today is known as a top down model. That\u2019s where you look at big, broad strokes. You look at in the world of TV, how many impressions or how many GRP\u2019s did we buy in a specific month, week or day. How much did we spend. You look at what the sales results are and then what happened is, is that digital became more and more a component of the marketing mix because you go back 15 years ago, 20 years ago, digital was very, very, very small. It was like less than 5%.<\/p>\n<p>Jeff Greenfield:<br \/>\nAnd it worked out okay because you look at these broad strokes, you can look at correlation, you can layer in some causation you can even run machine learning on this type of data to see, \u201cHey, you know direct mail is not as effective as it is.\u201d But the problem is, is that when you layer in the digital data all you\u2019re really looking at was total number of impressions. There is a difference between a TV impression and a digital impression. There\u2019s differences in sides, you can layer in activity, there\u2019s all sorts of things. So what happened is that is digital started to grow up over the last 10 to 15 years. Came the concept of really mapping out the entire customer journey, to where you could look at every single click, every single impression, and then layer that in all the way through an entire journey.<\/p>\n<p>Jeff Greenfield:<br \/>\nThrough this data what we\u2019ve been able to learn is really incredible. That we know that the average consumer journey, and this is across all sectors and all industries, is about 32 days. With about 22 individual brand exposures of touchpoints. Now that\u2019s all sectors. But where it gets really, really fascinating and is interesting is when you get into other sectors like auto. Like auto has this journey which has two different journeys. There\u2019s a short journey when a consumer gets in an auto wreck. And it\u2019s about an 8 day journey, meaning you\u2019re driving to work one day, you don\u2019t expect you\u2019re going to a need a new car and all of a sudden you do. You\u2019re car gets totaled, you wait for the insurance to total it and boom you\u2019re going to buy a car. That\u2019s 8 days.<\/p>\n<p>Jeff Greenfield:<br \/>\nBut the normal journey for everyone else is about eight months. Think about it, if you\u2019re on a lease you get a lease, they try to buy you out of your lease like 8 months before your lease is expired and that\u2019s a really long journey. So that can have hundreds and hundreds of touchpoints. So that\u2019s what we learned from this kind of, what\u2019s called today multi-touch attribution, this consumer journey mapping. And that\u2019s what you call bottom up, where you get very, very, very granular and you kind of move your way on up. You start at an individual digital tiny little touchpoint, and you move your way all the way up, all the way up, all the way up, and now you\u2019re at this kind of channel level where you can evaluate YouTube on its own and you can evaluate YouTube in relationship to something like a Criteo. Or YouTube in relationship to a trade desk or YouTube in relationship to buying television on NBC.<\/p>\n<p>Jeff Greenfield:<br \/>\nAnd so there\u2019s that top down and there\u2019s that bottom up. So 10 years ago as digital started to become more and more important part of the ecosystem, there was this big push for just multi-touch attribution and everything has to be incredibly, incredibly granular. But of course, the problem with granular data is that it can point you in an incorrect direction. \u2018Cause when you\u2019re analyzing all of this data at a very granular level, if it looked like for example like at that point 95% of your data is impression-based data. And we know because of the problem in the digital ecosystem that half of all digital ads are never seen. So as a result, you could, you didn\u2019t know which ads were seen and which ones were not seen. You could actually, even when you model the data you could be pointed in a wrong direction but with that top down modeling, that marketing mix you\u2019re never pointed in that wrong direction. But the problem with top down is it doesn\u2019t give you the granularity that you want.<\/p>\n<p>Jeff Greenfield:<br \/>\nThe future of independent measurement today is what Forrester is calling a unified measurement model. Where we take the best of both worlds. Where we\u2019re able to use this granular data where it\u2019s available and where take that top down approach where it\u2019s available as well because some marketers come to you with a brand new brand and they don\u2019t have any historical data. But where there is historical data you want it \u2019cause it helps inform the future. So today, most clients today and most marketers today are looking at both, they\u2019re using as much granular data as possible in order to stay on plan and on touch. But they\u2019re using that top down to kind of keep them in alignment as well.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo, with that in mind, changes like GDPR are always going to end up in regulatory changes and the changes that we see go on with like the Cambridge Analytica and all of these things. There\u2019s going to be reckoning and even with all the location data that gets leaked out through apps that consumers aren\u2019t even aware of. I think that there\u2019s going to be a reckoning that the digital ecosystem is going to have, and it\u2019s already starting now. But it\u2019s going to happen over the next 24 to 36 months. What the result is going to be is there\u2019s going to be less availability of data, and it\u2019s going to be restricted, but it\u2019s going to be restricted down to a level that it\u2019s not going to impact independent measurement. Because of where we sit, and we sit on the side of the advertiser, we\u2019re living in a world where we have access to the advertiser\u2019s first party data. So even though Google may constrain their data ever so slightly, just like Facebook will, we still have the bird\u2019s eye view of looking at it from that advertiser\u2019s perspective. So even if there are holes and there are gaps, which there\u2019s always going to be. I mean Amazon is a huge hole for a lot of folks, same thing is true with Ebay, but yet we\u2019re still able to see around it, especially if we\u2019re sitting at the perspective of the advertiser.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo, that was a roundabout way of saying, that Google did constrict the data ever so slightly, so they could comply with GDPR, but from a measurement perspective, marketers that are utilizing independent measurement, they\u2019re not going to be missing out on anything.<\/p>\n<p>Shyam Patil:<br \/>\nGreat. And moving over to the Double Click Id, you talked about the change, what the ID was used for, why Google made the change, what they changed. Can you talk about what the impact has been thus far from this change? So if advertisers and agencies were using the ID, essentially to measure the effectiveness of digital campaigns, and now they\u2019re zeroed out, what are agencies and advertisers doing, how are they reacting to this?<\/p>\n<p>Jeff Greenfield:<br \/>\nI mean, they\u2019re scared out of their minds. I mean they have a duty to produce reports to their clients every single month, to let them know how the campaigns are progressing. You know, are we on plan? What\u2019s our ROI looking like? You know, not what is our total ROI, that\u2019s easy for the advertiser to do. The advertiser simply looks at what sales were this month, and how much we spent. That\u2019s my cost per action, or that\u2019s my return on ad spend, row ads as they call it. In our world, we call it AVSR, which stands for Attributed Value to Spend Ratio. So AVSR is the new way of looking at things, and the reason you have a new perspective on it is because, when you walk into an organization where the return on ad spend for someone like Criteo used to be incredible, and then all of a sudden, under this new lens of management it looks really bad.<\/p>\n<p>Jeff Greenfield:<br \/>\nPeople freak out when their row ad numbers change significantly. So independent measurement always comes in and says, \u201cHey, this is a different number with a different acronym.\u201d It\u2019s a way of kind of building consensus over time, but I gotta tell you for those folks that were utilizing Double Click IDs, but were not on a Google stack already, meaning they\u2019re on a Google stack, but they\u2019re not using Google Analytics 360, because remember they \u2026 most of these folks are running GA, you know Google Analytics for free. But the agencies didn\u2019t wanna spend the 200 grand for Google Analytics 360. They didn\u2019t want to spend even more money for independent measurement, because they\u2019ve got a team in the house that can do it.<\/p>\n<p>Jeff Greenfield:<br \/>\nAnd they\u2019ve got all the data, we\u2019re just pulling these Double Click IDs. We\u2019re running them in Excel and reports, and we\u2019re putting in in visualization software. And even the client has overall row ads, I can now give them row ads by tactic, and strategy, and by partner. I can tell them how YouTube did, I can tell them how Criteo did, I can tell them how all this thing did, because we ran everything through DCM, Google\u2019s ad server and I have complete visualization of what happened. Well, I tell you for some of them, I don\u2019t even think they pulled the reports yet because you know how it is, it\u2019s not the end of June yet. And what\u2019s going to happen is, at the end of June, they\u2019re going to pull their reports, and they\u2019re going to have this oh shit moment, they\u2019re going to be like, \u201cWhat are we going to do?\u201d And that\u2019s what\u2019s going to happen. It\u2019s going to be a bunch of late nights, and they\u2019re going to have to all of a sudden, come up with an answer for their client and it\u2019s going to be a huge, huge reckoning.<\/p>\n<p>Jeff Greenfield:<br \/>\nWe\u2019ve already had some very upset calls, not just from advertisers but from marketers themselves, meaning internal teams that have a BI team, where they have built an incredible BI stack, where they are getting these feeds that are coming in automatically. They\u2019re getting pushed into their, what they call their data leg, and they\u2019re running all of this analysis. But unless they\u2019re really up to speed, most of them are probably only running these reports once a month, and they\u2019re not going to know what happened until it all happens, until the end of this month. And there\u2019s going to be, there\u2019s been a big freak out right now, if you read somewhat in the press. There have been a bunch of folks calling, telling Google it\u2019s unfair what they\u2019re doing, it\u2019s not right, and it\u2019s like, \u201cHey listen. This is Google\u2019s company, they can go what they want, they write the rules on this type of stuff, and their legal teams have determined that giving out these IDs violates GDPR, and they can\u2019t.\u201d<\/p>\n<p>Jeff Greenfield:<br \/>\nYou know, there\u2019s already reports of problems that are going on, and we all knew that stuff like that was going to happen, but they don\u2019t want to put themselves further into jeopardy, and I don\u2019t blame them, so there\u2019s solutions that are out there. An advertiser or marketer can sign on the dotted line with Google, be part of the Google stack. Of course the problem with that is, that once you sign up on that Google stack, you are now entrusting that row ads, or what ad call that AVSR, that Attributed Value to Spend Ratio, you are entrusting that Google is going to give you the right number. That they\u2019re going to give you the right breakdown between Google inventory, and Criteo inventory, and PV and all of that stuff.<\/p>\n<p>Jeff Greenfield:<br \/>\nNow here\u2019s the thing that I honestly believe a 100%, that Google\u2019s numbers are completely independent, that they are completely on their own, that there is a \u2026 like in research organizations. You know like Gartner\u2019s got the sell side and the research side, the same with Forester, and there\u2019s this wall that\u2019s up between those two. And I\u2019m 100% of the belief that there\u2019s a wall up between Google Analytics measurement, and Google Analytics on the sell side. The company\u2019s huge, of course there\u2019s a separation there. But the problem is, the optics. And this is where you get into difficulty, because when you\u2019re talking about divisions and splitting up budgets between different partners, tactics, strategies, and channels, and you\u2019re talking about measurement, there\u2019s always winners and there\u2019s always losers. And it goes deeper than that, because in many instances, there\u2019s not just one agency.<\/p>\n<p>Jeff Greenfield:<br \/>\nThere\u2019s multiple agencies and everybody is fighting for budget, and if there\u2019s a report that comes out that shows that Google search is doing better than a certain tactic or channel, you got to believe that those folks on those tactics and channels are going to point fingers and say, \u201cOf course, Google is saying that Google search is doing better.\u201d Now even though, it\u2019s completely independent, those types of optics cause problems in an organization and prevent that organization from moving forward, because there is no independent voice. It is impossible for Google to come in with an independent voice when they\u2019re selling media themselves.<\/p>\n<p>Jeff Greenfield:<br \/>\nIn fact, there\u2019s now being calls made that Nielsen, because of their eXelate purchase that they sell data, they\u2019re selling targeted pieces of data, that it is impossible for them to provide an independent voice. And this is Nielsen, whose been the voice of reason in terms of TV for many years, but some advertisers are saying that they\u2019re not even trusting Nielsen data because they\u2019re not completely independent. And that\u2019s the problem, is that when there\u2019s the appearance of not being independent, that can cause ripples and problems within an organization. And that\u2019s the long term impact here.<\/p>\n<p>Shyam Patil:<br \/>\nThis is all great points, and just following up. So, if agencies are going to be smart enough not to trust Google to grade its own homework, what do they do? Do they move spend to another platform? Are you seeing sale cycles from this from larger brands? I guess what, it doesn\u2019t seem like agencies and maps are going to trust Google to provide them the ROI without being able to independently measure it. So what are you seeing right now, what are the agencies doing or contemplating? What do you think ends up happening?<\/p>\n<p>Jeff Greenfield:<br \/>\nWell in January, most large holding companies and agencies were doing the same type of spend that they were doing over the last couple of years which is, we\u2019re creating our own measurement. And their way of creating their own measurement was to leverage those Double Click IDs. That\u2019s what it was. They were building out their own independent measurement using Double Click IDs, which was awesome, until this all went away. So right now, they\u2019re kind of spinning and they\u2019re doing a lot of discussions with folks like us. And there\u2019s not many others that are out there like us.<\/p>\n<p>Jeff Greenfield:<br \/>\nWhat we\u2019re now hearing, literally in the last three weeks is, that all of a sudden, a lot of the consulting firms are now getting into measurement. They\u2019ve always provided accounting advice. Some recently in the press are now saying that they\u2019re starting their own programmatic desk, and now they\u2019re getting into measurement. And again, that creates its own issue, very similar to the Google issue, which is how can you come in and audit all of our programmatic, and then also tell us you sell programmatic services and also measure. And that\u2019s being a problem right there.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo a lot of the agencies right now are trying to figure out, what are we going to do? And here\u2019s the issue. It\u2019s not like clicking a button, and switching over to a new platform, and the reason for that is that, if they\u2019re part of that Google stack which many of them are, switching off of the Google ad server to another. And there are some other great solutions out there. I mean it used to be that it was primarily DCM, which is Google\u2019s ad server, and it used to be Atlas. And then there was a kind of tertiary ad server, called Seismic. And that was pretty much it. And Atlas back in the day was, Microsoft\u2019s kind of ad server measurement solution. Microsoft kind of shut that down and Facebook bought it, like three years ago. It was very exciting.<\/p>\n<p>Jeff Greenfield:<br \/>\nFacebook is going to provide an ad server, advertisers are going to have access to Facebook inventory and insights in there, and it was great. And a lot of really forward thinking marketers jumped ship from Google to go to Facebook, because it\u2019s like, \u201cHey, we\u2019re spending a significant amount of our spend in Facebook, let\u2019s go over here.\u201d But what they found out very quickly is that, yes it was Atlas by Facebook, but it was still the kluge old style interface and it just didn\u2019t work that well. And there were lots of problems.<\/p>\n<p>Jeff Greenfield:<br \/>\nAnd right around that time, this was about a year and a half, two years ago, Double Click did a whole rebranding and cleaned up DCM, and it looked great. It looked incredible, so a lot of advertisers are stuck there. They\u2019re in these contracts, and switching over to another ad server is a lot of work. Now in the meantime, Seismic has gone out and has expanded. They\u2019ve acquired Rocket Fuel. And the nice thing about Seismic is, they\u2019ve got a huge massive international footprint. But so I think a lot of the advertisers and a lot of the holding companies are going to sit back and re-evaluate. \u201cOkay, here are, it\u2019s summer. I don\u2019t wanna make a change now, because if I make a change now it\u2019s going to impact Q4.\u201d And Q4 for most brands is a big, big season for them.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo really, if they\u2019re smart, they\u2019re going to make plans for the transition that they\u2019re going to make in Q1. But now, besides having Seismic available, Atlas is gone, there\u2019s a lot of other alternatives out there. Because most of them are not just looking at ad serving capabilities, they\u2019re also looking at trading test capabilities, because a lot of them are hooked in with DCM, and then also the Double Click Bid Manager. So, now there\u2019s also the possibility of MediaMath, is a great solution, which also has large international presence. Obviously there\u2019s The Trade Desk, which continues to pick up steam, and continues to be a powerhouse. And then there\u2019s also, so we talked about Seismic, there\u2019s MediaMath, there\u2019s Data Zoo as well. Another Boston company here, as well.<\/p>\n<p>Jeff Greenfield:<br \/>\nAnd what I\u2019m expecting is, I\u2019m expecting a lot of them will see this as an opportunity to say, \u201cHey, if we can add a very simple nice layer, that\u2019s a very simple layer for agencies to load up creative and make things easy,\u201d because most of these trading desks are set up to work in conjunction with DCM. I don\u2019t think many of them ever anticipated a future where maybe DCM and Google would be completely gone, and I think that\u2019s where things may be headed. So it opens up a really unique opportunity for a lot of these players.<\/p>\n<p>Jeff Greenfield:<br \/>\nBut I think that what most marketers, if they\u2019re smart, they\u2019re going to try to hack something together between now and the end of the year because they have to, but they\u2019re not going to make such a significant shift. What they may do is start testing, like now, and maybe move over a couple of campaigns at a time, and maybe if they can do that. It really depends on the size of the client. Some of these clients are just so large, it\u2019d have to all be done at once, and it\u2019s just a kind of real major effort.<\/p>\n<p>Shyam Patil:<br \/>\nThat\u2019s helpful. And you\u2019re talking mostly about, at this point, the larger more sophisticated advertisers, correct? The small to mid-size ones will probably be okay with Google grading their homework because they probably prefer it that way, anyways. Is that a fair tech relation?<\/p>\n<p>Jeff Greenfield:<br \/>\nYeah, if a brand, if an advertiser is spending, let\u2019s say below three million dollars a year, most of their measurement is probably going to be on Google or Facebook. They\u2019re not large enough yet where they\u2019re branching out into TV, and so the Google solution, and someone in house will be able to take the Google data, hack it together with some of the Facebook data, and you know, put it in an Excel spreadsheet, and do some R square analysis and figure out how to kind of guide the ship.<\/p>\n<p>Jeff Greenfield:<br \/>\nBut what happens is, that once you start spending more money than that, you\u2019re now working across different channels, and now you\u2019re missing out, like for example, like the regular Google Analytics, the free solution which most people will use. The minute you go out of Google\u2019s ecosystem, and let\u2019s say you wanna try AdRoll for retargeting, a great retargeting solution. You\u2019re not going to be able to get the impression data into Google Analytics, you\u2019re going to be lost. So you\u2019re not going to be able to, the GDN retargeting that you\u2019re going to do through AdWords, is going to look five to a hundred times better than AdRoll will every single day of the week. And TV\u2019s not going to come into Google Analytics natural on its own, too.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo you\u2019re at the point where, that\u2019s going to work well for you, because the problem is that even to move up to that Google Analytics 360 layer, you\u2019re looking at a couple hundred grand a year, and that\u2019s tough for someone who\u2019s spending three million dollars a year, that\u2019s like five percent of their ad spend. That\u2019s tough for someone at that level to justify at this point. Once they start getting higher, they\u2019ll stick with that solution, but what\u2019s going to happen is they\u2019re going to find they\u2019re plateauing. They\u2019re spending more money but conversions and KPIs are not moving, they can\u2019t move the needle. And they can\u2019t figure out why, and it\u2019s because, the Google solution at that point is just going to keep saying the same thing, \u201cSpend more money with Google. Google stuff is working.\u201d And then at that point, that\u2019s where there say, \u201cHey, we need to really invest in an independent voice to tell us what\u2019s working and what\u2019s not.\u201d<\/p>\n<p>Shyam Patil:<br \/>\nExcellent. And just a quick follow-up, so maybe just honing in on the DSP commentary that you made, you know potentially Trade Desk, MediaMath, Data Zoo, could be beneficiaries. Hypothetical question. So a lot of agencies, for specific advertisers, for specific advertiser campaigns, will run multiple DSPs. So, if DBM is getting the lion\u2019s share of the spend for a particular advertiser, but that agency also has say, The Trade Desk, or MediaMath, or Data Zoo set up as secondary DSPs, is it a challenge to incrementally start shifting some campaigns over to these other DSPs because they\u2019re already set up? Is that something we could start to see now incrementally, and then more of a material shift next year? Would that be kind of what you would expect?<\/p>\n<p>Jeff Greenfield:<br \/>\nThey could do it, and they could do it now. The problem is, is that where\u2019s all that creative coming from? So you see, in that scenario, where you talk about DBM, Data Zoo, Mediamath, and Trade Desk, where you\u2019re running on four DSPs, you\u2019re running it all through a single ad server. So what that means is, I can upload one piece of creative into DCM, and then I divvy up code across all of them, and then I\u2019ve got a centralized repository for my creative. So if I wanna update creative, I just go in one place and do it. In fact what I could do is, I could just go and update that creative in DCM right now, and it would update the creative across everyone. That\u2019s the whole purpose behind an ad server.<\/p>\n<p>Jeff Greenfield:<br \/>\nMost people don\u2019t do that. They tend to reissue tags, but to manage each one of them individually, is a real pain. And so historically, what most marketers and the agencies have done, is they use that DCM as that central repository for reporting. So I could shift money over, as a way to tell DBM, and a way to tell Google I\u2019m unhappy, but at this point, if I\u2019m using those Double Click IDs to measure and I don\u2019t have them anymore, I\u2019m scared out of my mind. And so what we find happens when people are in the dark is, there\u2019s very \u2026 there tends to be no action at all. They\u2019re scared. They figure I\u2019m just going to keep doing what we\u2019ve been doing because it\u2019s been working, and no one\u2019s been complaining and so, until we have a better sense of what we should-we\u2019re just going to keep it at the same level. I think there\u2019s a huge opportunity for those DSPs to come in and say, \u201cHey, let\u2019s help you move.\u201d In fact, what I would do is that I would create a whole team and just go at it.<\/p>\n<p>Jeff Greenfield:<br \/>\nThis is a great marketing opportunity for them. Listen, at the end of the day, there is an ad tech team at Google that has a number to hit, but the reality is that when you look at the P&amp;L for Google, that the money amount of money that comes in to them through the people buying DCM is minuscule. The big numbers are their inventory.<\/p>\n<p>Jeff Greenfield:<br \/>\nAnd still, at the end of the day, that Google display network is great inventory. It performs really, really, really well. Whether someone is buying the Google inventory through DBM or DCM or through Trade Desk, Dataxu, or Media Mass, they\u2019re going to buy it no matter what because there\u2019s so much of it and it does perform well.<\/p>\n<p>Shyam Patil:<br \/>\nExcellent. If Google does start to realize share losses from this and you guys just touched on this jut now, would they, do you think, revert back to giving out the ID or do you think in a GDPR world, because this is not a material P&amp;L driver for them that they\u2019re unlikely to revert back and kind of live with the share losses? What is your view there?<\/p>\n<p>Jeff Greenfield:<br \/>\nI don\u2019t think there\u2019s going to be any share losses from Google in terms of monetary if people left DCM in droves. I think if it does happen, it\u2019s going to be a slow change because people \u2026 Remember DCM is a portal and is a simple way to buy their inventory, and that\u2019s really what they want. That\u2019s where they make the lion\u2019s share of their dollars.<\/p>\n<p>Jeff Greenfield:<br \/>\nStill, the one piece that we haven\u2019t talked about here is that a lot of the reason people are on DCM is because it ties in perfectly into what\u2019s called DS3, which is double click search. So that\u2019s another piece of the pie that is also being lost.<\/p>\n<p>Jeff Greenfield:<br \/>\nThese people that are on this whole double click stack, their using these double click IDs to also measure all of the search impact, as well. So this impacts search dramatically, as well, too. It all ties in together, but I don\u2019t see, based upon my history of seeing Google make changes based upon regulation or litigation since the founding of Google, I have never seen them revert back on any change. I just don\u2019t see it happening at all.<\/p>\n<p>Jeff Greenfield:<br \/>\nThe reason for that is that they have created an environment where if you want to get the data, it\u2019s available for you. You just gotta do some work to get there. Not some work, you have to do a lot of work to get there. Which means, the only people who are going to get it are the people that really need it and really want it, and are really doing a good service for their clients.<\/p>\n<p>Jeff Greenfield:<br \/>\nI don\u2019t see any shift back. I think if every client, if every advertiser who is using DCM left tomorrow, if Dataxu announced tomorrow that they have the best ad server in the business, and let\u2019s say it is, and everyone \u2026 There was a push button where they could click and export their data overnight, and everyone did it, guess what? People are still going to be buying Google\u2019s inventory.<\/p>\n<p>Jeff Greenfield:<br \/>\nI don\u2019t see any share loss for them, whatsoever. It\u2019s not like everybody, all of a sudden, moving overnight from AWS over to the Google Cloud. This is small numbers for them, at least from our perspective.<\/p>\n<p>Shyam Patil:<br \/>\nGot it. Okay. That\u2019s very helpful. But small numbers for Google could be material for some of these other DSPs that you cited. Correct?<\/p>\n<p>Jeff Greenfield:<br \/>\nIt could be incredible numbers for them. Not only that, remember once you have them as a customer, and they\u2019re doing all of their buying through you, then what that means is, they\u2019re your trusted \u2026 It\u2019s totally different when you\u2019re Dataxu, and you\u2019re one DSP, when you\u2019re medium app, and you\u2019re one DSP out of five, you\u2019re part of the plan.<\/p>\n<p>Jeff Greenfield:<br \/>\nWhen the agency comes over and you are now serving everything, and everything is going through you, it\u2019s a completely different relationship. I wouldn\u2019t be surprised, and remember that one piece that we talked about with DS3? There\u2019s two pieces of technology out there that have just been sitting around for the longest time that are search management tools, Kenshoo and Marin Software.<\/p>\n<p>Jeff Greenfield:<br \/>\nThese companies have been largely ignored for a number of years. They\u2019ve done a really good job at incorporating Facebook data, making it easy for their clients to go in and purchase Facebook inventory. I would think that there\u2019s an opportunity here, if I was a trading desk, to team up with one of them and make a combined offering that could then be a click of a button away for advertisers to shift over where they would have all the IDs that they need.<\/p>\n<p>Jeff Greenfield:<br \/>\nThat could be something really, really interesting. It could be a powerhouse. That could be significant to one of those players. Very, very significant. Remember, like I said, when you\u2019re in that seat, you have a completely different relationship with the agency, you have a completely different relationship with the advertiser, and it creates other opportunities to sell them more services and more products.<\/p>\n<p>Shyam Patil:<br \/>\nThat\u2019s a great explanation. I had a question from the audience related to what we\u2019ve been talking about the past couple of questions.<\/p>\n<p>Shyam Patil:<br \/>\nYou talked about the double click ID impact to revenue for Google, it would likely be minimal for them, all it could be material for some of the other DSPs. How about the removal of the third-party tags? How impactful will that be to Google?<\/p>\n<p>Jeff Greenfield:<br \/>\nI think it will have zero impact. When you look at Ad Age and Adweek, and Broadcasting &amp; Cable, and you read all these magazines and industry news, all you hear about is how brands have been unhappy with Facebook and Google for the longest time.<\/p>\n<p>Jeff Greenfield:<br \/>\nIt\u2019s because you\u2019re living in the world of consumer generated content, which is not brand synced. It\u2019s the nice thing about television. Google talks about how YouTube is a great replacement for TV. Yeah, the only difference is that it\u2019s not produced. Now they\u2019re starting to come out with YouTube Red and these other products, but the majority of inventory on YouTube is all user generated content. You have no idea what\u2019s going to be there, and it\u2019s not brand saved.<\/p>\n<p>Jeff Greenfield:<br \/>\nThat\u2019s the biggest complaint of the P&amp;Gs of the world, not to mention all the fraud that\u2019s out there. Mark Pritchard at P&amp;G has been spouting for the last year or so that 75 cents of every dollar they\u2019ve spent in digital has not even been seen by a human, it\u2019s been completely fraudulent. It\u2019s just never ever seen.<\/p>\n<p>Jeff Greenfield:<br \/>\nBrands are always complaining. That\u2019s what you read about. What most people forget is that the majority, the vast majority of the ad purchasers on Google and on Facebook are SMBs. It\u2019s your local florist, your dentist, your chiropractor, your gym. The people that are buying local. Once every florist in a town start buying, what happens? These are all bid environments. The bids keep going up, and going up, and going up. That\u2019s why the CPM\u2019s keep going up every quarter.<\/p>\n<p>Jeff Greenfield:<br \/>\nGoogle and Facebook, their earnings keep going up, and going up, and going up. I honestly don\u2019t think that, even though Google and Facebook have set up these huge teams to take care of the big advertisers, they\u2019ll set up this massive team, they\u2019ll wine and dine them, they\u2019ll invite them out to the Google Campus. Facebook will do like a Facebook University to educate them. The marketers are all excited. They get to go to the Facebook Campus. I think I saw Zuckerberg across the hall wave to me. It\u2019s all very cool. It\u2019s all very exciting.<\/p>\n<p>Jeff Greenfield:<br \/>\nBut at the end of the day, even though that brand they represent $300 million a year that could come in to them, that\u2019s their total spend, let\u2019s say. Maybe they can get 35% of that. They still make more money from the SMBs. I think at the end of the day, that\u2019s who Google is catering to.<\/p>\n<p>Jeff Greenfield:<br \/>\nThe SMBs, their not spending enough money. I\u2019m an SMB. To me, I\u2019m spending a lot of money. I\u2019m spending $3,000 a month on Google for advertising. I\u2019m not going to spend $300,000 a year on independent measurement, or a million dollars a year. That\u2019s more than my advertising budget. I think the impact is going to be minimal to them. I think the other side of this is that when you talk about the fraud, and you talk about the brand safety aspect, the other piece to this we haven\u2019t even discussed is, what are brands going to do?<\/p>\n<p>Jeff Greenfield:<br \/>\nWhat is the potential, if you will, backlash, and we\u2019ve already started to see it, which is, if I\u2019m a brand, the biggest concern I have as a brand is not that I\u2019m not going to have enough sales, but if I\u2019m an international top 50 brand, my biggest number one concern and the concern of my board is ads that show up where they shouldn\u2019t be showing up.<\/p>\n<p>Jeff Greenfield:<br \/>\nAds that show up and stuff that\u2019s not brand safe. Still, to this day, I cannot trust that Facebook is not going to be brand safe. I cannot trust that YouTube is not brand safe. The things that I know are brand safe are television. I know that print is brand safe, and I know that premium advertisers are brand safe.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo things like the Financial Times, things like even the WWE. It may not be brand safe to some brands, but I know what it is because it\u2019s controlled. It\u2019s not user generated content. It\u2019s funny because the world is shifting. You go back to where things were seven, eight years ago, it was the emergence of programmatic.<\/p>\n<p>Jeff Greenfield:<br \/>\nAdvertising is taking off. We\u2019re trading. Digital advertising, just like the stock exchange. It\u2019s all this bid. The whole idea was a user goes to the New York Times, and the page loads. As the page is loading, it\u2019s a real time option. How much am I bid for this person? It\u2019s a male. Age is 34 to 55 coming from the Boston area, who just left BMW. How much am I bid, and boom, someone bids on it.<\/p>\n<p>Jeff Greenfield:<br \/>\nIt was a great way for premium brands to sell off some of their inventory, but guess what? If I\u2019m a brand, and I buy premium inventory through the ad exchange and it doesn\u2019t perform, I don\u2019t get a make good. I don\u2019t have a throat that I can choke. I don\u2019t have anyone to yell at except for my agency. But guess what? If I go do a direct buy with the New York Times, and they make guarantees \u2026 If I go do a direct buy with the Financial Times, or the WWE, not only can they give me great guarantees, but they can do customized content for me. If it doesn\u2019t perform, I\u2019ve got someone to yell and scream at, and I can get a make good.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo the other big winner in this are going to be those premium publishers, because you\u2019re going to see a return to the old days. You\u2019re going to see a return to the invoice days where it was actual invoices. That\u2019s what\u2019s coming next and that\u2019s what\u2019s coming back. That\u2019s the new world of media is that if I\u2019m a big brand, it\u2019s obvious to me that these ad tech companies and these social media companies don\u2019t really care about me as much as someone like the WWE does It sounds kind of funny saying that, but it\u2019s absolutely true.<\/p>\n<p>Shyam Patil:<br \/>\nThat\u2019s a good point. That\u2019s a good point. I want to hit on a couple of more topics if we can get through these. Google. One of the other things that they\u2019ve done. I\u2019m not sure if this is a permanent change, [Marilee <span>[00:53:03]<\/span> said something in the near term. They\u2019ve limited their DBM purchases to their own network inventory where they can ensure compliance with their consent program. What kind of impact do you think that has had, or will have, to put us in the ecosystem, whether it\u2019s advertisers or publishers, ad tech companies?<\/p>\n<p>Jeff Greenfield:<br \/>\nI think it just forces folks to go and find alternatives. That\u2019s the biggest impact in terms of that. That\u2019s in terms of the long term. In the short term, just because, unless they\u2019re an in-house agency, so some of the larger brands, they have an in-house team running things. In that instance, they\u2019ve always been running DSPs.<\/p>\n<p>Jeff Greenfield:<br \/>\nSo, in the case that DBM is shut off certain providers, they\u2019ll just shift that money over there. That\u2019s fine because DBM, they were getting pennies on that anyway. But for a lot of the agencies who may be, and I hate to call them out, they may be lazy. They\u2019ll just shift that money over to Google. So, I think in the short-term Google may see a little bit of bump, and an increase in buys as a result of that. It may impact. Anybody who is going through an agency where everything\u2019s been going through DBM, because that\u2019s kind of the lazy person\u2019s way of doing things.<\/p>\n<p>Jeff Greenfield:<br \/>\nWe\u2019ve always been a big proponent of \u2026 Some of our clients are running 15 different partners against each other. The argument has always been, \u201cOh, you don\u2019t want to do that.\u201d They\u2019re all bidding against each other. It\u2019s like, \u201cHey, you know what my feeling is if I\u2019m the advertiser, whoever has the best strategy wins.\u201d I don\u2019t feel like I\u2019m wasting my money because I have independent measurement that\u2019s going to tell me who\u2019s actually doing a good job. I think what\u2019s going to happen is, in the short term, Google may be the winner in that race, but give it a couple of months, and I think tat people are going to see that the numbers aren\u2019t as good as they used to be.<\/p>\n<p>Shyam Patil:<br \/>\nOkay. That\u2019s great. Last question. Switching up a little bit to Facebook. What do you think have been their key changes, and what\u2019s been the impact thus far? If we can squeeze that in, in the next few minutes.<\/p>\n<p>Jeff Greenfield:<br \/>\nWell, I think that since Cambridge Analytica, Facebook has really shut down a lot of things. They\u2019ve started shutting down part of their app ecosystem. Listen, they can do whatever they want. We saw this happen \u2026 You go back to the history of Google, all the changes that are going on at Facebook, it\u2019s the same changes that Google went through. Albeit, just accelerated. It\u2019s been a compressed time frame. That\u2019s been kind of their first thing.<\/p>\n<p>Jeff Greenfield:<br \/>\nThe second thing that\u2019s happened is that they\u2019ve also shut off a lot of third-party measurement. You go back four years ago, they allowed a lot of independent measurement. Then they shut it down, because some independent measurement companies got acquired by some of their competitors. AOL acquired a competitor. AOL acquired one, Google acquired another, so they kind of shut things down. They\u2019ve been kind of playing both sides for a little while trying to figure out what they want to do.<\/p>\n<p>Jeff Greenfield:<br \/>\nBut still, at the end of the day, Facebook\u2019s number one focus is on the SMBs. That\u2019s their number one thing. I think they\u2019re really, really focused on those small bit players, and then maybe the medium sized players. The local companies that are spending $100,000 to $200,000 a year, and there\u2019s a lot of those.<\/p>\n<p>Jeff Greenfield:<br \/>\nThey want most of that share. That\u2019s what they want. Their big play is on most of those local markets. Those are things that really don\u2019t appeal to the larger brand advertisers. The larger brand advertisers, they want those kind of big picture things. Facebook has been playing in the game of \u2026 Remember earlier we talked about those two types of measurements, the old school way, which is that top down marketing mix, and then the bottom school, the newer way, which is that bottom up. The two kind of meet in the middle.<\/p>\n<p>Jeff Greenfield:<br \/>\nFacebook doesn\u2019t want them to meet in the middle. What Facebook has been doing is saying, \u201cHey, use us for that top down modeling, so you can see the great work we\u2019re doing.\u201d The only data that Facebook has allowed, thus far, is just been data on people that are successful. What we call converting people. Meaning, \u201cHey, you know, you showed an ad to a million people, 10,000 of them converted. Here\u2019s the data on those 10,000 people.\u201d<\/p>\n<p>Jeff Greenfield:<br \/>\nIt\u2019s like, \u201cWell, what about those other 990,000 non-converters. I\u2019d like to get data on those, so I can really go in and tweak the campaign, so I can turn this 10,000 into 50,000.\u201d Google, thus far, has said, \u201cNo. We\u2019re not going to give you that data,\u201d which means Google has kind of relegated to that kind of top down approach. Those have been their big changes. I think we\u2019re going to see them stay that way for a while, until this whole Cambridge Analytica cloud kind of moves on. It\u2019s going to take them a while. It seems like every time they take two steps forward and lately, five steps back.<\/p>\n<p>Jeff Greenfield:<br \/>\nIt\u2019s yet to be seen how that\u2019s going to shake out for them.<\/p>\n<p>Shyam Patil:<br \/>\nGreat. Well, this was extremely helpful, Jeff. Thanks so much for taking the time to walk us through such a complicated topic. Thank you everyone for listening in. With that, I\u2019ll turn it back over to Miles to conclude the call. Thanks everyone.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":3240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"audio","meta":{"footnotes":""},"categories":[246],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Susquehanna Securities - CCPA &amp; Google Chrome Privacy Briefing - Jeff Greenfield<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jeffgreenfield.com\/susquehanna-securities-ccpa-google-chrome-privacy-briefing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Susquehanna Securities - CCPA &amp; Google Chrome Privacy Briefing - Jeff Greenfield\" \/>\n<meta property=\"og:url\" content=\"https:\/\/jeffgreenfield.com\/susquehanna-securities-ccpa-google-chrome-privacy-briefing\/\" \/>\n<meta property=\"og:site_name\" content=\"Jeff Greenfield\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-26T14:05:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-26T20:31:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/jeffgreenfield.com\/wp-content\/uploads\/2020\/07\/privacy-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"260\" \/>\n\t<meta property=\"og:image:height\" content=\"185\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Jeff Greenfield\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@jeffgreenfield\" \/>\n<meta name=\"twitter:site\" content=\"@jeffgreenfield\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jeff Greenfield\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"55 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/jeffgreenfield.com\/susquehanna-securities-ccpa-google-chrome-privacy-briefing\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/jeffgreenfield.com\/susquehanna-securities-ccpa-google-chrome-privacy-briefing\/\"},\"author\":{\"name\":\"Jeff Greenfield\",\"@id\":\"https:\/\/jeffgreenfield.com\/#\/schema\/person\/549916ff13d8f26dd2f3bba0d8bd9dec\"},\"headline\":\"Susquehanna Securities &#8211; 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