The U.S. market for marketing-related identity data, platforms, and services will reach $4 billion in 2020 and grow nearly 20% per year to 2024, according to Winterberry Group. The report provides interesting details on pricing models and estimates for spending in Europe. Winterberry estimates U.S. spend on all third-party audience data and data activation solutions will total $21.9 billion.
Identity data is also on Facebook’s mind: the company said that revenue on its Audience Network could fall by more than 50% when Apple iOS 14 blocks access to IDFA device identifiers. Facebook said they might shutter the network entirely as a result. Audience Network runs ads on mobile apps other than Facebook itself. Cookie-blocking browsers apparently led Facebook to shut down the Web and in-stream video portions of Audience Network in April. Audience Network revenue is a small fraction of Facebook’s total business but can be significant for app publishers.
Whatever happens to Audience Network, Facebook is working hard to build its ecommerce business. Its latest step is Facebook Shop, a new section in its main app that lets users buy from multiple merchants. This is a big step up from the Facebook Shops that exist on merchants’ own pages. Raise your hand if you think becoming more dependent on Facebook is a good idea.
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