The digital advertising landscape is undergoing a significant transformation as publishers and media owners adapt to the loss of third-party data signals. A recent State of the Industry report, sponsored by Optable, highlights the critical steps being taken to enhance data monetization strategies amidst evolving privacy regulations and the need for advanced targeting capabilities.
According to the report, which surveyed 97 media owners and publishers, a staggering 66% of respondents identified the lack of reliable cookie-based third-party audience data as a primary challenge. Furthermore, 61% pointed to signal decline and its impact on campaign measurement as a growing concern. This situation represents a pivotal moment on the supply side, as traditional targeting tools become less effective.
Mathieu Roche, CEO and co-founder of ID5, emphasized the necessity for publishers to rethink their approach to data. "Publishers have traditionally operated on a principle that if they publish great content, people will come," Roche stated. "Today, if publishers want to monetize, they need to increase their customer relationship practices to build up their data assets. I’d say we’re one-third to halfway there in terms of publishers adopting that way of thinking." This sentiment reflects a broader recognition that the digital advertising ecosystem is shifting rapidly.
Despite ongoing industry shifts toward privacy-compliant solutions, a notable 74% of survey respondents described themselves as "mostly reliant" on cookies and other third-party identifiers, underscoring the significant risks they face as these signals phase out. Bennett Crumbling, head of marketing at Optable, noted, "We’re seeing a shrinking of the audience that used to be addressable via third-party signals like cookies. That’s going to change buyer habits, and the forward-looking publishers know that." This shift is prompting many publishers to reevaluate their data strategies.
As the landscape evolves, the report indicates that 79% of respondents estimate that first-party data represents 40% or less of their audience data. Only 4% of publishers report that more than half of their audience data is first-party, revealing a slow transition toward self-sustained data strategies. In response to these challenges, 70% of digital publishers are prioritizing contextual and on-page signals, while 64% are upgrading attribution, measurement, and optimization tools.
Moreover, nearly six in ten (59%) publishers are using third-party insights to enrich audience data, and 57% have adopted universal IDs to enable privacy-compliant partnerships. However, the report highlights that only 34% of publishers currently use data clean rooms to engage with partners, even though 82% consider data collaboration important. This indicates a growing recognition of the strategic value of clean rooms, despite the need for further adoption.
When it comes to managing data, analytics platforms (76%) are the top tool for publishers, followed closely by data warehouses (70%) and mobile app analytics platforms (66%). This underscores the industry’s focus on robust data management and first-party data insights. In contrast, more publishers are turning to Customer Data Platforms (CDPs) for greater flexibility in first-party data activation and privacy-safe audience targeting.
As publishers grapple with the complexities of managing multiple platforms, an overwhelming majority (82%) of them say reducing costs tied to audience tech vendors is a key priority for 2025. Nearly half (45%) plan to negotiate better pricing from their vendors, often through long-term contracts or bundled services. This push for cost efficiency is crucial as publishers seek to avoid vendor lock-in and streamline their operations.
In light of these evolving dynamics, the report reveals that 78% of respondents are either actively using or in the process of building an identity graph, a database linking multiple user identifiers across devices, channels, and platforms. This suggests a growing consensus that identity graphs are a foundational element of a long-term audience strategy. Paul Bannister, Chief Strategy Officer at Raptive, stated, "By taking control of identity yourself — and not relying on browser-based cookies — publishers are better set up for the future." This proactive approach is essential for publishers looking to thrive in a changing environment.
However, the implementation of these strategies is not without challenges. More than half of publishers (51%) cite decentralized data as a major hurdle, while 21% say maintaining data accuracy and consistency is a key barrier. Roche remarked, "All the ingredients are publisher-based — they have the customer relationship, the signals, and the consent. But they need the tech support to refine it and make it usable." This highlights the need for technological advancements to support publishers in their data efforts.
The report also underscores the importance of third-party data in monetization strategies, with 90% of respondents either strongly agreeing or somewhat agreeing that it plays a crucial role. As publishers work with providers to integrate third-party data into their first-party datasets, they aim to improve targeting, expand reach, and drive new revenue opportunities.
Looking ahead, 81% of publishers anticipate higher yields from programmatic advertising in 2025, reflecting a renewed optimism in this revenue stream. However, 73% of respondents expect direct-sold advertising revenue to remain the same, suggesting that publishers need to align their monetization strategies with the evolving advertising ecosystem.
As the industry shifts away from third-party identifiers, digital publishers are actively reimagining how they collect, manage, and monetize audience data. While the transition to first-party strategies and privacy-safe solutions is still underway, it’s clear that momentum is building around identity graphs, alternative IDs, and direct collaboration with advertisers. The survey responses reveal that while no single solution has emerged, publishers are investing in a composable mix of tools that support addressability, measurement, and privacy compliance.
In this rapidly changing landscape, those publishers that embrace these changes and future-proof their infrastructure will be best positioned to maintain advertiser trust, unlock new revenue streams, and compete in the next era of digital advertising.
