The consequences of Google’s decision to discontinue the use of third-party tracking cookies on its Chrome internet browser, as well as similar moves by Apple to remove automatic tracking on its iOS operating software, are subject to some speculation.
For investors looking for ways to play potential angles, Bango PLC (LON:BGO), YouGov PLC (LON:YOU) and other third-party data providers are likely to be among the main beneficiaries, analysts at Liberum have suggested.
In a note on Wednesday, the broker said the decision by the tech giants will “force brands previously dependent on targeted advertising via exchanges to reassess their media strategy”, resulting in increased use of both first and third-party data for targeted marketing campaigns.
READ: Bango and NTT DATA enter partnership to expand payments across Asia
“Some marketers have been over-reliant on third-party cookies and advertising exchanges to run targeted campaigns at scale; thus marketer habits will change dramatically as they are forced to adapt”, the broker said.
“Brands that hold a rich library of first/third-party data stand to gain from continued targeting”, Liberum said, adding that those facilitating the use of first-party data and third-party data providers “should thrive”.
Liberum added that other groups that could benefit from the shift include marketing consultancy firms such as M&C Saatchi PLC (LON:SAA) and Kin + Carta PLC (LON:KCT), which they expected to see “Increased volumes of data consulting contracts from the disruption”.
Other firms highlighted as potential beneficiaries of the changes included retail software firm Eagle Eye Solutions Group PLC (LON:EYE), cloud marketing software specialist DotDigital Group PLC (LON:DOTD) and Martin Sorrell's new media agency S4 Capital PLC (LON:SFOR).
Shares in Bango were up 0.3% at 215.6p in late morning trading, while YouGov jumped 1.2% to 1,097p, M&C rose 0.4% to 131.5p and Kin + Carta fell 0.6% to 174p.