May 19, 2020 - Technology

Exclusive: New York Times phasing out all 3rd-party advertising data

The New York Times building. Photo: Eduardo MunozAlvarez/VIEWpress/Corbis via Getty Images

The New York Times will no longer use 3rd-party data to target ads come 2021, executives tell Axios, and it is building out a proprietary first-party data platform.

Why it matters: Third-party data, which is collected from consumers on other websites, is being phased out of the ad ecosystem because it's not considered privacy-friendly.

  • This has forced several big publications to rely on their own first-party data, or data that they collect directly from their users.

Beginning in July, The Times will begin to offer clients 45 new proprietary first-party audience segments to target ads.

  • Those segments are broken up into 6 categories: age (age ranges, generation), income (HHI, investable assets, etc.), business (level, industry, retirement, etc.), demo (gender, education, marital status, etc.) and interest (fashion, etc.)
  • By the second half of the year, The Times plans to introduce at least 30 more interest segments.

"This can only work because we have 6 million subscribers and millions more registered users that we can identify and because we have a breadth of content," says Allison Murphy, Senior Vice President of Ad Innovation.

  • Murphy notes that the company has invested significantly in building out the proprietary targeting solution. "We hired a large team specifically to support this year of a dozen people. The effort has touched at least 50 people and many more in every part of company to get this to work."

Between the lines: The effort is part of a greater push to a privacy-friendly experience from The New York Times.

  • Last year, Axios reported that the company's marketing team will no longer use tracking pixels from Facebook and Twitter to track its users' browser history.

The big picture: Many online publishers still use third-party data, which is collected from consumers on other websites using tracking tools, to target consumers with ads.

Yes, but: Not all publishers have the scale, or user trust, to build out their own first-party data sets.

  • Murphy notes: "While a differentiator and I'm thrilled about it, this isn't a path available for every publishers, especially not local who don’t have the scale of resources for building from scratch.."

Be smart: Other publishers like Vox Media and The Washington Post have also begun building out first-party data solutions in response to the growing industry backlash against using third-party data to target ads.

Go deeper

Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.