>>mhm Yes. Welcome back to the Qantas industry summit on the demise of third party cookies, the cookie conundrum, a recipe for success. I'm john furrier host of the cube. The changing landscape of advertising is here and Chip Gupta, founder of you of digital is joining us Chip, thanks for coming on this segment. Really appreciate, I know you're busy, you've got two young kids as well as providing education to the digital industry. You got some kids to take care of and train them to. So welcome to the cube conversation here as part of the program. >>Yeah, thanks for having me excited to be here. >>So the house of the changing landscape of advertising really centers around the open to walled garden mindset of the web and the big power players. We know the big 34 tech players dominate the marketplace. So clearly in a major inflection point and we've seen this movie before Web mobile revolution, which was basically a reply platform NG of capabilities. But now we're in an error of re factoring the industry, not re platt forming a complete changing over of the value proposition. So a lot at stake here as this open web, open internet global internet evolved. What are your, what's your take on this, this industry proposals out there that are talking to this specific cookie issue? What does it mean? And what proposals are out there? >>Yeah, so, you know, I I really view the identity proposals and kind of to to kind of groups, two separate groups. So on one side you have what the walled gardens are doing and really that's being led by google. Right, so google um you know, introduce something called the privacy sandbox when they announced that they would be deprecating third party cookies uh as part of the privacy sandbox, they've had a number of proposals unfortunately, or you know, however you want to say they're all bird themed for some reason, I don't know why. Um but the one the bird theme proposal that they've chosen to move forward with is called flock, which stands for Federated learning of cohorts. And essentially what it all boils down to is google is moving forward with cohort level Learning and understanding of users in the future after 3rd party cookies, unlike what we've been accustomed to in this space, which is a user level understanding of people and what they're doing online for targeting tracking purposes. And so that's on one side of the equation, it's what google is doing with flock and privacy sandbox. Now On the other side is, you know, things like unified, I need to point or the work that 85 is doing around building new identity frameworks for the entire space, that actually can still get down to the user level. Right? And so again, unified I. d 2.0 comes to mind because it's the one that's probably got the most adoption in the space. It's an open source framework. So the idea is that it's free and pretty much publicly available to anybody that wants to use it and unified, I need to point out again is user level. So it's it's basically taking data that's authenticated data from users across various websites you know that are logging in and taking those authenticated users to create some kind of identity map. And so if you think about those two work streams right, you've got the walled gardens and or you know, google with flock on one side and then you've got unified I. D. Two point oh and other I. D. Frameworks for the open internet on the other side, you've got these two very differing type of approaches to identity in the future. Again on the google side it's cohort level, it's gonna be built into chrome. Um The idea is that you can pretty much do a lot of the things that we do with advertising today, but now you're just doing it at a group level so that you're protecting privacy whereas on the other side of the open internet you're still getting down to the user level. Um And that's pretty powerful. But the the issue there is scale, right? We know that a lot of people are not logged in on lots of websites. I think the stat that I saw is under five of all website traffic is authenticated. So really if you if you simplify things, you boil it all down, you have kind of these two very differing approaches. >>I guess the question it really comes down to what alternatives are out there for cookies, and which ones do you think will be more successful? Because I think, you know, the consensus is at least from my reporting in my view, is that the world agrees, Let's make it open, Which one is going to be better. >>Yeah, that's a great question, john So as I mentioned, right, we have we have to kind of work streams here, we've got the walled garden work work stream being led by google and their work around flock, and then we've got the open internet, right? Let's say unified I. D to kind of represents that. I personally don't believe that there is a right answer or an endgame here. I don't think that one of them wins over the other, frankly, I think that, you know, first of all, you have those two frameworks, neither of them are perfect, they're both flawed in their own ways. There are pros and cons to both of them. And so what we're starting to see now is you have other companies kind of coming in and building on top of both of them as kind of a hybrid solution. Right? So they're saying, hey, we use, you know, an open I. D. Framework in this way to get down to the user level and use that authenticated data and that's important. But we don't have all the scale. So now we go to google and we go to flock to kind of fill the scale. Oh and hey, by the way, we have some of our own special sauce, right? We have some of our own data, we have some of our own partnerships, we're gonna bring that in and layer it on top. Right? And so really where I think things are headed is the right answer, frankly, is not one or the other. It's a little mishmash of both. With a little extra something on top. I think that's, that's what we're starting to see out of a lot of companies in the space and I think that's frankly where we're headed. >>What do you think the industry will evolve to, in your opinion? Because I think this is gonna, you can't ignore the big guys on this, has these programmatic, you mentioned also the data is there. But what do you think the market will evolve to with this, with this conundrum? >>So, so I think john where we're headed? Um, you know, I think we're right now we're having this existential existential crisis, right? About identity in this industry, because our world is being turned upside down, all the mechanisms that we've used for years and years are being thrown out the window and we're being told that we're gonna have new mechanisms, right? So cookies are going away device IEDs are going away and now we got to come up with new things and so the world is being turned upside down and everything that you read about in the trades and you know, we're here talking about it, right? Like everyone's always talking about identity right now, where do I think this is going if I was to look into my crystal ball, you know, this is how I would kind of play this out. If you think about identity today, Right? Forget about all the changes. Just think about it now and maybe a few years before today, Identity for marketers in my opinion, has been a little bit of a checkbox activity. Right? It's been, hey, um, okay, uh, you know, ad tech company or media company, do you have an identity solution? Okay. Tell me a little bit more about it. Okay. Sounds good. That sounds good. Now can we move on and talk about my business and how are you going to drive meaningful outcomes or whatever for my business? And I believe the reason that is, is because identity is a little abstract, right? It's not something that you can actually get meaningful validation against. It's just something that, you know, Yes, you have it. Okay, great. Let's move on, type of thing. Right. And so that, that's, that's kind of where we've been now, all of a sudden the cookies are going away, the device IDs are going away. And so the world is turning upside down. We're in this crisis of how are we going to keep doing what we were doing for the last 10 years in the future. So everyone's talking about it and we're trying to re engineer right? The mechanisms now if I was to look into the crystal ball right two or three years from now where I think we're headed is not much is going to change. And what I mean by that john is um I think that marketers will still go to companies and say do you have an ID solution? Okay tell me more about it. Okay uh let me understand a little bit better. Okay you do it this way. Sounds good. Now the ways in which companies are going to do it will be different right now. It's flock and unified I. D. And this and that right. The ways the mechanisms will be a little bit different but the end state right? Like the actual way in which we operate as an industry and kind of like the view of the landscape, in my opinion will be very simple or very similar, right? Because marketers will still view it as a tell me you have an ID solution, Make me feel good about it. Help me check the box and let's move on and talk about my business and how you're going to solve for my needs. So I think that's where we're going. That is not by any means to discount this existential moment that we're in. This is a really important moment where we do have to talk about and figure out what we're gonna do in the future. My just my viewpoint is that the future will actually not look all that different than the present. >>And I'll say the user base is the audience. Their their data behind it helps create new experiences, machine learning and Ai are going to create those and we have the data. You have the sharing it or using it as we're finding shit. Gupta great insight dropping some nice gems here, Founder of You of Digital and also the Adjunct professor of Programmatic advertising at Levi School of Business and santa Clara University Professor. Thank you for coming, dropping the gems here and insight. Thank you. >>Thanks a lot for having me john really appreciate it. >>Thanks for watching the cooking 100 is the cube host Jon ferrier. Me. Thanks for watching. Yeah. Yeah.