Using Stanza to Thrive in a Post Third-Party Cookie World
Google recently announced they’re doing away with third-party cookies in their flagship browser Chrome and — gasp — it’s gonna happen before 2021. Chrome is following in the footsteps of Safari and Firefox to close a massive loophole around user privacy. None of this is surprising given the scrutiny user data (and privacy) has come under since the 2016 election.
Cookies are how advertisers buy ad inventory programmatically. For years, third-party cookies served as the workhorse of the ad tech system outside of Facebook, Google and Amazon. This is a decades-old innovation that streamlined the digital advertising process, from the planning and activation of ads to the measurement of how they perform.
While the move away from third-party data solidifies the walled gardens (Facebook, Google, Amazon), it leaves many independent publishers questioning how they’ll pay their bills in the near future.
Who survives and how?
Not surprisingly, the biggest hit here will be taken by local newspapers and independent mom and pop media shops. They have the lowest margins and the least available resources to invest in finding a solution (more on this below) in a timely manner.
For everyone else — premium publishers like Time Inc., advertisers like American Express and ad tech vendors such as Index Exchange — it’s a race to find the right value exchange to create a logged-in user base (aka first-party user data) that is a viable alternative to third-party cookies.
Two words: Value Exchange
In the words of Paul Graham, “make something people want.”
Building a first-party audience is all about building a product and experience that people actually want to come back to. There are two ways that media companies are tackling this problem today:
- Premium written content: The New York Times turned the model of free content on its head by having readers pay for access to premium content, which in turn requires them to create a profile.
- Other premium content (audio/video): Companies are considering giving away their streaming or podcast services ($70–100/year) for free if users create a profile. Peacock is leading the charge here with a free ad-supported product.
We believe there’s a third option: Premium Services
That’s where Stanza comes in.
While the NY Times has had considerable success with the paid premium model, the majority of content globally remains free, making it more likely that a logged-in or paying user base will remain small.
In a world where there is arguably too much content, we believe the value for users is how and where the content is accessed. For Stanza, this is where the calendar comes in.
Other examples of services where there is a clear value exchange for the user:
- Recommendations & personalization: The Skimm offers readers a free newsletter but charges for a calendar app that provides curated world events.
- Convenience: AllTrails offers readers hiking trails globally but charges for an upgrade that allows users to download those trails with unlimited offline access.
- Save money: Time Out offers readers events with a login-free experience. Time Out More is a subscription service that gives exclusive access to discounts, offers and benefits at participating venues.
At Stanza, we’re in the business of helping millions of people add events they care about to their calendars. The service we offer them (in exchange for logging in) is making sure their calendars are always up-to-date.
However, with great access comes great responsibility. Our optimistic view of the world is that market forces will require publishers to invest in and create delightful content and services that add immense value for users. And in some cases, enough value that users are even willing to pay for it, opening up a new business model for legacy publishers.
// Contact us at learnmore@stanza.co if you’re looking to build out a first-party audience.
