Walled Gardens, YouTube, and PAAPI

Welcome to The Refresh, a weekly newsletter from AdTechGod and Marketecture. Every Thursday we’ll bring you the latest advertising news, commentary, and memes.

• Project Jarvis: Google is reportedly developing a ‘computer-using agent’ AI system (TheVerge)

• Adland on alert as LinkedIn & Pinterest come under legal fire for ad tracking practices (The Drum)

• Former Hearst employee accuses publisher of wrongful termination after reporting fraud (The Wrap)

• Integral Ad Science explores potential sale (Bloomberg)

• Who is @digital_chadvertising, the ad industry’s self-appointed memelord? (The Drum)

• Meta strikes multi-year AI deal with Reuters (AXIOS)

• From print to pixels (Linkedin Post + Chartr)

NEWS: Did you hear that Ad Tech Explained has joined the Marketecture family? It’s an amazing monthly newsletter that goes DEEP into one subject explaining exactly how it works and why it matters. Subscribe right below 👇️ 

Walled Gardens VS Open Web

This LinkedIn poll by AdTechGod shows a clear trend: most people think walled gardens mean “less transparency and less choice.” A solid 73% picked that option, seeing these closed platforms as limiting visibility and freedom for both users and advertisers.

It brings up a big question: by giving so much power to a few big players, are we losing control and transparency?

The open web offers more flexibility and openness, while walled gardens feel more closed off. This taps into a common industry concern: are we moving toward a digital world controlled by a handful of powerful companies, sacrificing openness and choice along the way?

Aris’ View: It’s the flip side of performance. By controlling everything you get transparency, but at what cost?

YouTube and Social Media Overtake Traditional TV as America’s Go-To Screens

This shift means big challenges for linear TV!

As more people flock to YouTube and social media, traditional TV is losing its once-central role in people’s daily media habits. Advertisers will continue to pull budgets from linear in favor of digital platforms, drawn by the massive and highly engaged audiences now found online.

But what does this mean for other streaming apps and channels? Simply put… pressure and a massive opportunity! While competing with YouTube’s scale is tough, there’s huge potential for niche streaming services and ad-supported platforms. Content and user experience will be key, given YouTube's stickiness and its extensive library of professional content, short-form videos, and more. Competing will be tough unless you go all in. So, go all in.

Ari’s view: In other news YouTube crossed $50 billion in revenue. Insane. Outside of sports the traditional model is dead.

Can Chrome’s PAAPI Bridge the Cookie Gap? New Study Says It’s Closer Than You Think

Research from Boston University shows that Chrome’s Protected Audiences API (PAAPI) might be a solid privacy-friendly replacement for third-party cookies. Tested with different Chrome user groups, PAAPI retargeting hit 86% of cookie-based ad effectiveness when ad spend was factored in. Yet, adoption is low, supply is limited, and there are some technical hiccups like latency. Stopgap fixes like ID bridging work for now but aren’t long-term solutions, making PAAPI look like a decent bet if the industry gets on board. With enough support, PAAPI could help fill the gap in our cookieless future.

Ari’s View: It always seemed to me like Pappi was built for retargeting, but not for the rest of audience-centric buying. It isn’t surprising that they could optimize retargeting to within an acceptable outcome.

The Return to the Golden Era of Madison Ave event is over but there is more to come.

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