The Digiday Podcast: What Happened to the Post-Cookie Era with IAB Tech Lab’s Anthony Katsur

Release Date: January 28, 2025

In this insightful episode of The Digiday Podcast, hosts Kameka McCoy and Tim Peterson delve into the tumultuous landscape of digital advertising as brands, agencies, and publishers navigate the ongoing transition to a post-cookie world. Featuring a compelling conversation with Tony Katzer, CEO of IAB Tech Lab, the episode explores the current state of third-party cookies, identity solutions, and broader industry shifts affecting the digital advertising ecosystem.

1. Current Industry Highlights

Before welcoming their guest, McCoy and Peterson cover several pressing topics that have been shaping the digital landscape at the dawn of 2025.

TikTok Ban Extended and Potential Acquisition

• Kameka McCoy introduces the recent developments regarding the TikTok ban, which was unexpectedly lifted after a 75-day extension under the new administration.
• Tim Peterson discusses President Donald Trump's proposal to have the U.S. government acquire 50% ownership of TikTok, potentially partnering with tech giants like Oracle or Elon Musk's ventures. This surprising turn reflects the unpredictable nature of tech regulation and its impact on global platforms.

  “Maybe at the end of this, the US government owns TikTok, which just feels almost unthinkable.” [04:13]

Executive Orders on Diversity, Equity, and Inclusion (DE&I)

• The hosts address President Trump's executive orders that roll back DE&I initiatives on a federal level. This action aligns with similar moves by major corporations like Walmart, Amazon, and McDonald's, prompting questions about the future commitment of brands to these values.

  “Does this set a new precedent? Does this set a new standard for how committed these brands have to be?” [07:57]

CNN’s Digital Pivot

• Tim Peterson highlights CNN’s strategic shift from traditional TV, including the elimination of 200 jobs in the TV department while hiring an equal number for digital roles. This move is part of a broader trend where legacy media companies are restructuring to prioritize digital content and streaming services.

  “CNN's gonna have a new streaming service because that was part of this announcement, too.” [10:56]

Netflix’s Earnings and Strategic Moves

• The conversation touches on Netflix’s impressive subscriber base of over 300 million, with a global reach of 700 million people. Despite price hikes for both ad-supported and ad-free tiers, Netflix plans to diversify into the restaurant business with its Live Experiences initiative in Las Vegas.

  “Netflix reported earnings and it closed the year with more than 300 million subscribers.” [11:32]

2. In-Depth Interview with Tony Katzer

The heart of the episode features an extensive discussion with Tony Katzer, focusing on the longevity of third-party cookies and the future of digital identity solutions.

The Status of Third-Party Cookies

• Tim Peterson sets the stage by questioning the anticipated demise of third-party cookies, which were expected to be deprecated by Google Chrome in 2025. Contrary to expectations, Google has paused the phase-out, maintaining support for third-party cookies and even endorsing IP address tracking as part of fingerprinting.

  “It feels like the idea of a post-cookie future is kind of dead at the moment.” [16:43]

• Tony Katzer responds by emphasizing that while third-party cookies are still in use, this delay provides the industry with additional time to develop and adopt alternative identity solutions.

  “The good news is that it’s given the industry time to move on from it and look at alternative forms of addressability and identity.” [16:43]

Google’s Role and Consumer Consent Mechanisms

• The discussion delves into Google's collaboration with the Competition and Markets Authority (CMA) in the UK to establish a new consent-based approach for cookies. Katzer expresses concerns about potential consumer confusion from multiple consent prompts across websites and browsers.

  “If there’s wild amounts of opt out, then the cookie is effectively dead.” [22:46]

• Katzer advocates for maintaining third-party cookies, attributing blame for privacy issues to bad actors rather than the cookies themselves. He suggests that stronger enforcement and penalties for misuse would be a better solution.

  “I would rather see stiffer penalties for bad actors than destroy a token that has supported interoperability across the web for 30 years.” [23:04]

Emerging Identity Solutions and Industry Adoption

• Katzer outlines the importance of adopting new identity frameworks such as the Ad Creative ID (ACID) framework, designed to enhance frequency management and reach without relying on IP addresses. However, he acknowledges the slow adoption rate within the industry, likening the transition to the long evolution of mobile technology.

  “Ad ID is not... It’s a 10 year trajectory we’re on.” [41:07]

• The conversation highlights the challenges of implementing ID-based solutions in a landscape still reliant on traditional methods. Katzer underscores the need for widespread adoption and industry cooperation to phase out outdated tracking mechanisms effectively.

  “We’re looking at this like oil and water. It’s going to be a decade-long shift.” [40:57]

Future Outlook and Regulatory Impact

• The hosts and Katzer agree that significant changes to digital identity and tracking will unfold over the next decade, driven by regulatory pressures and technological advancements. Katzer predicts a continued split between ID-based and ID-less solutions, depending on the size and capacity of the organization.

  “We mutually have our hands full for the next seven to ten years.” [42:02]

3. Conclusion

This episode of The Digiday Podcast offers a comprehensive examination of the current state and future trajectory of digital advertising in the post-cookie era. Through the expertise of Tony Katzer, listeners gain a deeper understanding of the complexities surrounding third-party cookies, the emergence of new identity solutions, and the broader implications of regulatory changes. As the industry stands at this crossroads, the insights provided underscore the need for collaboration, innovation, and strategic adaptation to navigate the evolving digital landscape.

Notable Quotes with Timestamps:

• “Maybe at the end of this, the US government owns TikTok, which just feels almost unthinkable.” – Tim Peterson [04:13]

• “Does this set a new precedent? Does this set a new standard for how committed these brands have to be?” – Kameka McCoy [07:57]

• “CNN's gonna have a new streaming service because that was part of this announcement, too.” – Tim Peterson [10:56]

• “The good news is that it’s given the industry time to move on from it and look at alternative forms of addressability and identity.” – Tony Katzer [16:43]

• “If there’s wild amounts of opt out, then the cookie is effectively dead.” – Tony Katzer [22:46]

• “I would rather see stiffer penalties for bad actors than destroy a token that has supported interoperability across the web for 30 years.” – Tony Katzer [23:04]

• “We mutually have our hands full for the next seven to ten years.” – Tony Katzer [42:02]

For those navigating the digital advertising realm, this episode provides essential perspectives on the enduring legacy of third-party cookies and the innovative pathways being forged towards a more privacy-centric future.