In a startling example of the Matthew effect of accumulated advantage, the incumbent advertising giants are actually being strengthened by legislation aimed to curb their influence. Because, of course.
For years, digital businesses relied on what is known as “third party” tracking. Companies such as Facebook and Google deployed technology to trail people everywhere they went online. If someone scrolled through Instagram and then browsed an online shoe store, marketers could use that information to target footwear ads to that person and reap a sale.
Now tracking has shifted to what is known as “first party” tracking. With this method, people are not being trailed from app to app or site to site. But companies are still gathering information on what people are doing on their specific site or app, with users’ consent. This kind of tracking, which companies have practiced for years, is growing.
The rise of this tracking has implications for digital advertising, which has depended on user data to know where to aim promotions. It tilts the playing field toward large digital ecosystems such as Google, Snap, TikTok, Amazon and Pinterest, which have millions of their own users and have amassed information on them. Smaller brands have to turn to those platforms if they want to advertise to find new customers.