The Market Report

This Week in Digital Marketing: Is It The End of Third-Party Cookies?

February 7, 2025

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The digital space continues to transform at a rapid pace. Third-party cookies could be dying, while TikTok’s fate in the US remains uncertain. On a lighter note, you can say goodbye to the hassles of making a phone call because AI can now ring up local businesses for you.

Here’s what you need to know this week.

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1. Google Updates Demand Gen Campaigns

After releasing updates for Performance Max, Google is also improving its Demand Gen campaigns, with feeds that allow users to scroll through full product details directly from ads. It’s akin to giving users the virtual window shopping experience, which does not require them to leave their current app.

The update also includes local inventory displays, expanded channel controls for ad placements (particularly in YouTube Shorts), and new reporting metrics that provide clearer comparisons between Demand Gen and paid social performance.

What this means for you:

The ability to showcase full product details without disrupting the user could yield great results for your ad conversion. So, consider this your cue to study these Demand Gen updates further and see how you can use them to improve your engagement rate.

On the other hand, the improved reporting could give you a clearer picture of what’s working so you don’t have to rely on guesswork.

2. New “Ask For Me” Lets AI Handle Business Enquiries for You

Good news for those who dread making phone calls! Google has been experimenting with a new tool called “Ask For Me,” which essentially lets AI make calls for you. This tool, currently available through Search Labs, calls local businesses like salons and auto shops to ask about pricing and availability, then relays the details back to you.

Built on Google’s Duplex tech, every call starts by clearly stating it’s an automated system calling on behalf of the user. That said, businesses can opt out if they prefer human interaction—which, let’s be honest, they probably will, but the potential virtues of this tool should not be disregarded.

Google also assures that “call quotas” are in place to prevent businesses from being bombarded with AI enquiries.

What this means for you:

As a customer, Google’s “Ask For Me” seems to offer a more efficient way to gather information from local businesses. It allows you to access key details without relying on time-consuming phone calls.

On the other hand, if you’re running a local business, opting into this service could help you capture more bookings, especially phone-averse customers who prefer quick, hassle-free interactions. And with AI handling the bulk of your enquiries, you can ensure prompt responses without being tied to the phone all day.

3. Perplexity AI Proposes TikTok Merger

In the wake of the widely discussed TikTok ban last month, Perplexity AI has made a rather interesting proposal: a merger with said platform’s US operations. To do this, the company has proposed the creation of a new entity, “NewCo,” wherein the US government could own up to 50% of shares—potentially valued at $300 billion—after an IPO.

Under this plan, ByteDance (the company that owns TikTok) would sell TikTok US to investors while keeping its core recommendation algorithm. As expected, this proposal has raised eyebrows; however, according to Reuters, Perplexity AI believes its bid will be a success, as the proposal is a merger rather than a sale.

What this means for you:

If the deal goes through, the merger could have significant implications, particularly if a new structure affects content moderation or transparency. Then, there’s the small matter about the US government gaining a stake, which could create a precedent for government ownership of social media platforms.

Until then, diversify your social media strategies and stay flexible—if there’s one thing we learned from this saga, it’s that the social media landscape we know today could drastically change tomorrow.

4. Beyond Cookies: Ad Targeting in 2025

This year, the demise of third-party cookies seems inevitable. Currently accounting for only 40% of open web impressions, this share could drop further to 10-20%, thanks to features like Apple’s ‘Ask Not to Track.’ Even alternative identifiers like emails or IP addresses are proving inadequate, as they lack scale and precision.

Enter ID-less advertising, which skips user ID matching and instead relies on real-time signals like geolocation and device-based data. If reports are reliable, this approach should give you access to an under-monetised territory and target a much larger share of the open web without violating privacy regulations.

This advertising shift mirrors what’s happening with SEO: traditional methods are still here, but their days are numbered. In this case, with privacy browsers becoming the norm, the transition to ID-less solutions is no longer a question of “if,” but “when.”

What this means for you:

While competitors are still utilising cookie alternatives, it might be a wise move to start testing ID-less solutions now. Focus on building campaigns that leverage real-time, non-ID signals like geolocation. Don’t forget to monitor the performance metrics of your current ID-based campaigns to compare them against the newer approach.

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