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If digital ad performance is already dwindling, if these major entities are forced to divest their subsidiaries, brands are in for a rude awakening. Digital ad dollars were worth their buck not just because brands could cross-polinate between platforms with the same owner (like Instagram and Facebook), but because by paying for one, they can reach consumers across multiple platforms (and gather data accordingly). Technology’s major players created a digital web of sorts: what you search on Google informs the ads you see on Instagram. If Meta and Google have to sell off their parts, this web will break. “Breaking them apart limits the overlapping data and would likely mean less granular targeting options for media buyers,” Amperity’s Slager says.Drake Drake Maye Maye Shirt
Campbell calls the current tracking abilities across platforms “creepy but effective”. “You Google a jacket, and suddenly it’s following you on Instagram. If that pipeline between companies is gone, retargeting gets a lot messier,” he says. Of course, consumers have long flagged issues with this ‘creepy’ pipeline, hence why many are now habitually clearing cookies and turning off tracking. “In more recent months, the digital advertising landscape has definitely become more competitive and less efficient.” Given this, it’s not as if the web hasn’t been broken already by the technology changes of recent years, Slager flags. The loss of third-party cookies and tracking limitations like Apple’s App Tracking Transparency framework disrupted brands’ abilities to maximise investment. The corporations, too, have scaled back the level of data they release to brands. “Even in today’s world and with the power these entities have, there are limits to how willing they are to release control over their ownership of the consumer and its data,” Slager says. Freja’s Lei still believes in the power of paid advertising. “I hear often that paid ads are getting super saturated and while that’s true, it doesn’t mean they’re ineffective,” she says. The barrier to entry is low enough that Lei believes, even with more competition, it’s still a more consistent channel than most in terms of revenue, once you nail it. “Paid is still our main acquisition channel to this day, although it took me almost two years to start seeing good results,” she says.
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