Observed Signal · Aug 8, 2019 · Policy Update · Source: OnlineMarketing.de · Impact: 4/5 · Sentiment: Neutral
Twitter blocks third-party data for ads
Twitter announced it will remove third-party data providers from its advertising system, requiring advertisers to rely on first-party data for targeting on the platform. The move, slated to take effect as of 2020, means brands will need to acquire customer-segment data from sources outside Twitter to target users within Twitter’s ecosystem. Twitter says the decision is not connected to recent data leaks that exposed user information. Twitter executives emphasized the goal of delivering the best possible experience for advertisers, agencies and marketers. Merkle, a Dentsu Aegis agency, criticized the shift as part of a broader industry trend toward reducing reliance on third-party data in favor of first-party data and accountability for data provenance. Advertisers are still responsible for the data they upload and use for targeting on Twitter, and many already depend on their own datasets to inform campaigns.
Policy update by a major platform (Twitter) affecting data usage and targeting in advertising.
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Key Takeaways & Evidence Grounding
- Twitter will block third-party data providers from its advertising system starting in 2020.
- Advertisers will need to acquire data about customer segments outside Twitter to target on Twitter.
- Twitter states the move is not linked to recent data leaks.
- Most advertisers reportedly already rely on their own first-party data for ad targeting.
- Merkle commented that platforms are moving away from third-party data to address risks and ensure data provenance.
Connected Companies & Entities
1 Entity mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
AI challenges in-house marketing model's value
Marketing is entering its third major push toward in-housing, driven by AI's promise of efficiency and cost savings. However, the article warns that history shows such moves often fail without proper culture, standing, and true total cost management. This time, the challenge is proving performance. Surveys indicate high AI adoption but low confidence in ROI: Duke University's CMO Survey shows no martech activity scored above 5 on a 7-point scale, and Comviva's survey reveals only 16% of marketing leaders feel confident defending AI spending. MIT NANDA reports 95% of organizations see no measurable return from enterprise genAI. The author argues that the third wave will be judged on proof, not just efficiency.
FTC Sues Amazon Over Alleged Ad Auction Manipulation
The FTC and 22 state attorneys general have sued Amazon in the Western District of Washington, alleging that its Sponsored Products ad platform secretly used 'soft reserve prices' to inflate advertising costs, converting second-price auctions into de facto first-price ones. The FTC claims this overcharged over 1.2 million advertisers—including 500,000 small businesses—generating over $20 billion in excess revenue from Amazon's $68 billion ad business. By 2024, 80% of winning advertisers paid near their maximum bids, up from 30–40% in 2021. Amazon denies the allegations, asserting that soft reserve prices are standard industry practice, its auctions remain second-price, average winning bids fell 50%, and advertisers saved $8 billion from 2021–2025. The case applies only to Sponsored Products via Amazon Ad Console, not Amazon DSP. Retail media expert Kiri Masters suggests advertiser trust may be damaged but Amazon's ad revenue is unlikely to decline significantly, while competitors could leverage transparency as a differentiator. This landmark case could set precedents for digital ad marketplaces.
German Federal Court Hears Cookie Storage Liability Case
Germany's Federal Court of Justice (BGH) is hearing a case on whether a technology and analytics company is liable for storing cookies on users' devices without consent on third-party websites. The plaintiff seeks damages, with lower courts awarding €1,500 and then €100. The case centers on the interpretation of the TDDDG. A ruling is not expected immediately. Legal experts say a BGH confirmation of the lower court's view would require companies to implement technical and organizational measures beyond contractual assurances to prevent unauthorized cookie placement. Meanwhile, the EU Commission proposed in November 2025 to reduce cookie banner pop-ups by allowing users to store preferences on their devices. The proposal faces scrutiny in the European Parliament and Council, with consumer advocates concerned about member states' resistance.
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