The digital advertising landscape is once again at a crossroads. Google’s recent decision to delay the phasing out of third-party cookies and ongoing discussions around privacy are stirring the pot for advertisers, with many seeing the recent announcement as confirmation that the search giant’s Privacy Sandbox is not fit for purpose.

Understanding Google’s Decision

“Google has finally acknowledged what the advertising industry has been saying for years: Privacy Sandbox is not a good product and doesn’t sufficiently protect consumers' privacy or empower advertisers.”—Jeff Green, founder and CEO of The Trade Desk.

While some view these changes as a setback, many, including Anthony Katsur, CEO of the IAB Tech Lab, believe this presents the industry with an opportunity to do things right and build solutions that “work for everyone versus Google’s initial approach, which, until recently, was developed with minimal industry input. The industry should continue working toward a vision of a privacy-centric world without third-party cookies.” 

With the amount of coverage and attention the cookie's demise has garnered over the years, you’d assume that advertisers would have moved on to find alternatives and workarounds. Although a lot of work has been done in this area, cookie reliance is still massive. Statista reports that nearly 83% of marketers rely on data gathered by third-party cookies to inform their campaigns and advertising, and Adobe reports that 45% of marketers spend at least half their budgets on campaigns and other activations based on third-party cookies.

The Resilience of In-Game Advertising

The cookie conundrum is less of a hurdle for in-game advertising. Unlike cookie-dependent models, intrinsic in-game advertising operates in a cookie-free environment, as video game engines do not use cookie-based tracking like web browsers. Instead, data solutions for in-game advertising leverage alternative identifiers and contextual targeting to align ads with the gaming environment. This approach not only navigates the cookie debate but also demonstrates how in-game advertising can flourish in a digital landscape increasingly centered on privacy and relevance.

In a recent interview with ad measurement platform Incrmntal about the impact the demise of the cookie might have on in-game advertising, Anzu’s Co-Founder and CPO Ben Fenster said, “In-game advertising offers advertisers several solutions that provide audience targeting across platforms and devices without using persistent user identifiers, allowing users to retain their privacy. Solutions include contextual targeting, targeting using statistical demographic data, and targeting using information players provide when they sign up for specific games.”

To allow advertisers to hone in on their target audience even further, Anzu has partnered with numerous targeting vendors across markets which, rather than relying on third-party cookies, use identity graphs (a system that links together different identifiers and data points associated with an individual customer across devices and channels), allowing brands to reach audiences based on factors like age, gender, household income, employment status, and geo.

Emerging Opportunities for PC Game-Based Campaigns

As browser-based advertising encounters challenges due to cookie deprecation, PC game advertising continues to emerge as a compelling alternative. The PC gaming community experienced significant growth in 2020, with over 200 million new players joining during the global pandemic. Since then, the popularity of PC gaming has continued to rise, and the number of PC gamers is projected to reach approximately 1.86 billion by the end of this year, further amplifying this opportunity for advertisers.

In-game advertising on PC also allows brands to engage with a rapidly growing market, offering substantial scale and interaction that traditional web-based ads can’t match. This approach avoids privacy concerns and seamlessly integrates with the gaming experience. At Anzu, we’re witnessing an increasing number of brands leveraging in-game ads to connect with a highly engaged and affluent audience. For example, Vodafone successfully used this method and saw huge boosts across brand consideration, brand awareness, and ad awareness.

Embracing The Future

Google’s decision to delay phasing out third-party cookies underscores the urgent need for advertisers to seek innovative solutions that prioritize privacy and contextual relevance. While many in the industry grapple with this transition, in-game advertising emerges as a leading alternative. 
 
By leveraging contextual targeting and avoiding the pitfalls of cookie dependency, in-game ads offer a more immersive and less intrusive user experience. This approach not only aligns with the industry’s shift towards a privacy-centric model but also capitalizes on the rapid growth of the gaming audience, which currently stands at 3.3 billion globally.

To find out more about the opportunities that intrinsic in-game offers, leave us your details and we'll be in touch.