The state of audience data monetization: Evolving strategies for identity, privacy and revenue

Digital publishers and media owners are responding by taking critical steps to collect and organize audience data to meet advertiser demand for new audience insights, prepare for new technology and seize this rare opportunity to build new revenue streams and grow existing ones. The way publishers structure their data today will directly impact their ability to collaborate with advertisers and monetize audience data in the future.

“Publishers have traditionally operated on a principle that if they publish great content, people will come,” said Mathieu Roche, CEO and co-founder of ID5, a technology company providing user identification solutions. “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.”

In this State of the Industry report, Digiday and Optable surveyed 97 media owners and publishers to understand how they are collecting, organizing and monetizing audience data as they work to build the new backbone of digital advertising.

Two of the top three market shifts impacting publishers’ audience monetization strategies are tied to the growing unreliability of third-party data linked to cookies. Sixty-six percent of survey respondents identified the lack of reliable cookie-based third-party audience data as a primary challenge, meanwhile 61% pointed to signal decline and its impact on campaign measurement.

Together, these findings represent a pivotal moment on the supply side. As third-party signals degrade, publishers are finding it increasingly difficult to connect with vendors and advertisers — diminishing the effectiveness of traditional targeting tools

The most common response — cited by 70% of respondents — was the lack of identity data management solutions. This likely reflects digital publishers’ ongoing struggle to connect a fragmented ecosystem of tools and platforms and the absence of a single, flexible solution built for a cookieless future.

“We’re seeing a shrinking of the audience that used to be addressable via third-party signals like cookies,” said Bennett Crumbling, head of marketing at Optable. “That’s going to change buyer habits, and the forward-looking publishers know that. Big media spend will shift more budget into places where media owners are prepared and can meet those addressability needs.”

Despite ongoing industry shifts toward privacy-compliant solutions, digital publishers and media owners remain heavily dependent on third-party data for revenue. Seventy-four percent of those surveyed describe themselves as “mostly reliant” on cookies and other third-party identifiers, highlighting the significant risk they face as these signals phase out.

“There’s so much built on [third-party cookies] that unless publishers really have to change, many will default to the old way of doing things,” said Roche. “There is a lack of incentive to make significant changes until the other side moves first.”

The data suggests there is still considerable work to be done on the supply side as the industry moves toward privacy-safe targeting and measurement. Seventy-nine percent of respondents estimate that first-party data represents 40% or less of their audience data, underscoring the ongoing reliance on third-party signals. 

“There’s a natural divide that stems from the evolution around the monetization stack,” said Crumbling. “Some publishers are investing in first-party data for improved collaborations and better integration into buying platforms. Others will relinquish some control and choose revenue share partnerships. It depends on the strategy and the weight publishers place on first-party data as a core part of their business. Many publishers are choosing to invest in it, though, as a way of future-proofing monetization.”

Only 4% report that more than half of their audience data is first-party, revealing a slow transition toward self-sustained data strategies. Additionally, with 42% of respondents stating that just 21-30% of their audience data is first-party, it’s clear that most publishers are still in the early stages of fully leveraging authenticated user data.

Although a perfect solution has yet to emerge, digital publishers are adapting to compensate for the diminishing returns of the third-party data ecosystem. The right approach depends on each publisher’s unique business model, but the most widely adopted strategies are leveraging the assets within a publisher’s direct control. 

Survey results show that most digital publishers (70%) are prioritizing contextual and on-page signals, while 64% are upgrading attribution, measurement and optimization tools. This points to a growing focus on strengthening audience data and in-house capabilities.

Beyond these internal efforts, publishers are turning to external solutions to strengthen their data offerings. Nearly six in ten (59%) are using third-party insights to enrich audience data, and 57% have adopted universal IDs to enable privacy-compliant partnerships.

Notably, collaboration via data clean rooms remains an emerging practice. While only 34% of publishers currently use them to engage with partners, later survey results show that 82% consider data collaboration important. This signals growing recognition of the strategic value of clean rooms, even as adoption continues to trail other, more familiar audience-building tactics.

“There’s more awareness and trust in clean rooms now than ever before,” said Roche. “However it’s still early and it has to be proven out. Publishers want to collaborate, but they also want to protect what they have.”

When it comes to managing data, analytics platforms (76%) are the top tool for publishers, followed 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.

The results also indicate a shift away from rigid CRMs (36%), which are primarily designed for managing known audiences. More publishers are turning to CDPs (52%), which offer greater flexibility for first-party data activation and privacy-safe audience targeting.

“There are things publishers can do now that move the needle — like integrating into UID 2.0 or Yahoo ConnectID — but the real strategy is longer-term,” said Crumbling. “Publishers need to be thinking about strategies ranging from audience enrichment to data collaboration, and how to structure their tech so it’s flexible across that range of solutions.”

With first-party data taking center stage, DMPs (26%) have predictably fallen out of favor, given their historical reliance on third-party cookies for audience segmentation. Data warehouses, however, remain critical for organizing and activating audience data — this highlights the growing importance of composable infrastructure in first-party data strategies.

Managing multiple platforms and integrating technologies also puts strain on budgets. An overwhelming majority (82%) of publishers 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. While these deals can lead to savings, publishers should also prioritize flexibility, data control and exit strategies to avoid vendor lock-in.

Concerned about overpaying for overlapping tools, more than a third of publishers (35%) are exploring cost-saving opportunities by consolidating platforms and eliminating redundancies.

With uncertainty still surrounding how advertisers and tech vendors will approach targeting and measurement, digital publishers are taking proactive steps to future-proof their data monetization strategies. 

One solution is the identity graph — a database that links multiple user identifiers across devices, channels and platforms. These graphs allow publishers to build more robust audience segments for targeting, personalization and monetization.

“By taking control of identity yourself — and not relying on browser-based cookies — publishers are better set up for the future,” said Paul Bannister, Chief Strategy Officer at Raptive. “You own more of the way you connect with partners.”

Survey results reflect strong momentum in this direction. Seventy-eight percent of respondents say they are either actively using or in the process of building an identity graph, while just 7% say they have no plans to develop one. This suggests a growing consensus that identity graphs are a foundational element of a long-term audience strategy.

Once an identity graph is established, some publishers are using a holistic identity framework to manage user identity across the digital ecosystem. It integrates multiple components — including the identity graph — to consistently and accurately recognize and engage with users across devices, channels and touchpoints. These frameworks unify all aspects of identity — from data collection and resolution to activation and privacy — under a single, interoperable strategy.

“Publishers and media owners that use holistic identity frameworks are well-positioned to continue to drive revenue growth in the wake of signal loss,” explained Crumbling. “By establishing an identity graph and then building audience strategies on top of it, they can better collaborate with advertising partners and enrich their first-party data in ways that prepare them for inevitable changes to audience targeting best practices.”

However, implementation 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.

“All the ingredients are publisher-based — they have the customer relationship, the signals and the consent,” said Roche. “But they need the tech support to refine it and make it usable.”

The vast majority of digital publishers recognize the value of enhancing identity graphs using third-party data. Ninety percent of respondents either strongly agree or somewhat agree that it plays an important role in their monetization strategy, as they work with providers to integrate third-party data into their own first-party datasets to improve targeting, expand reach and drive new revenue opportunities.

“Building an identity infrastructure rooted in first-party data — but also enriched with partner data — is now a key part of data strategy that really wasn’t there five years ago,” explained Crumbling.

Connecting with partners, vendors and advertisers in a privacy-safe way is where the rubber meets the road for data monetization. As identity strategies take on greater organizational importance, investment in data collaboration is a natural next step for many publishers.

While only 34% of respondents report using data clean rooms to build and target audiences, a larger share — 64% — say they actively collaborate with advertisers via clean rooms to plan and measure campaigns, with another 15% set to begin in 2025. This suggests that publishers and advertisers are still in the early stages of collaboration, not yet fully equipped to leverage clean rooms’ capabilities — potentially due to data preparedness challenges on both sides.

“The publishers investing in collaboration are the ones gaining steam,” said Crumbling. “They go to key advertisers, build custom plans from shared audience data and run campaigns with closed-loop measurement — it’s the same playbook big platforms like Facebook use.”

The growing use of clean rooms points to a clear shift in industry priorities. What was once considered a niche tactic is now becoming a core strategy for publishers seeking stronger advertiser relationships, deeper audience insights and improved campaign performance. 

When asked about the importance of data collaboration investments in 2025, 77% of publishers and media owners labeled it as important, with an additional 5% calling it mission-critical.

Survey results also highlight the diverse ways publishers are using data collaboration to support their advertising goals. Enhancing attribution and measurement (29%) emerged as the top use case, followed by creating and activating high-value audience segments (26%). Additionally, 20% of respondents are enabling privacy-safe data licensing partnerships — signaling a more proactive approach to compliance and monetization.

Supply-side investments in data collection, measurement and connectivity are likely related to programmatic accounting for a larger and growing share of the total revenue publishers and media owners receive from advertising. 

“Advertising is a quantitative practice now. It’s built on the ability to recognize customers, understand who they are and package them to support brand outcomes,” said Roche. “You can’t prove you are reaching the right people without addressability and measurement. If you can’t prove those two things, the rest doesn’t matter.”

Despite many companies highlighting a decline in the programmatic “open marketplace” in the past, publishers and media owners now see programmatic advertising as a key driver of revenue growth, with 81% anticipating higher yields from programmatic in 2025. 

The survey also signals that revenue from direct-sold advertising may stagnate. When asked which revenue source they expect to remain the same, 73% stated direct-sold. This suggests publishers should be aligning their monetization strategies to an evolving advertising ecosystem.

“Direct sales is hard, but that doesn’t mean publishers shouldn’t do it,” said Crumbling. “Publishers need to invest in both direct sales and programmatic. Going forward, I believe we will see those departments work much more closely together and, in some cases, converge because historically, those teams rarely spoke to each other.”

The rise of alternative ID frameworks from major buy-side platforms is likely fueling this renewed optimism in programmatic. By integrating their first-party data, publishers gain stronger addressability, cross-platform consistency and improved privacy compliance.

Nearly all respondents (94%) at least somewhat agree that this type of integration is an essential part of their 2025 monetization strategy, underscoring the need for interoperability between identity solutions.

“Publishers should be selecting technology that helps media planners buy their inventory in the ways they are accustomed to buying,” said Bannister. “If the solution they are considering meets that criteria, or is backed by a big platform connected to buyers —  like UID2 or RampID — go for it. If it doesn’t, they should probably take a pass.”

The near-total consensus on the importance of alternative IDs — alongside lagging adoption — suggests that while publishers recognize their value, many are still working through the complexities of implementation. But regardless of the current barriers, the survey signals a clear industry-wide push toward collaborative identity solutions that support privacy-compliant targeting and measurement.

Digital publishers appear to be experimenting with a variety of tactics and technologies to activate first-party audiences as the industry adjusts to cookie deprecation. Direct integration with DSPs (69%) is the most favored method, offering access to broader demand, real-time bidding and improved data insights. However, other channels are gaining traction.

“In the past with cookies, publishers were giving their data out to everybody with no ability to control it,” explained Bannister. “In the future, you might be giving it out via UID2 or LiveRamp, but with a contractual relationship — and that gives publishers more control and makes them more compliant.”

Publishers placed nearly equal importance on activating audiences through direct-sold ad-serving solutions (59%), SSPs via the open market (55%) and data marketplaces (55%). These preferences suggest that publishers are anticipating a tougher ad market and are diversifying their strategies to maximize yield across channels.

Private marketplaces (16%) received the fewest votes, suggesting publishers are prioritizing scalable opportunities over those focused exclusively on premium inventory and open only to a limited number of approved buyers.

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. Publishers are prioritizing data quality, flexibility and interoperability — even as they face challenges related to tech complexity, organizational readiness and cost control.

The survey responses in this report reveal that while no single solution has emerged, publishers are investing in a composable mix of tools that support addressability, measurement and privacy compliance. Data collaboration, once considered niche, is quickly becoming a core component of monetization strategies. Those that embrace these changes — and future-proof their infrastructure accordingly — will be best positioned to maintain advertiser trust, unlock new revenue streams and compete in the next era of digital advertising.