Amazon (NASDAQ:AMZN) has entered into a partnership with Reach, a U.K.-based publisher, to obtain customer data to enhance online advertising. The deal comes in reaction to Google’s (GOOGL) decision to eliminate third-party cookies from its browser.
Under the deal, Reach will provide Amazon with first-party data, such as information about the articles that users read. AMZN will then leverage this data to deliver more relevant and effective advertising on Reach’s sites. The financial terms of the agreement have not been publicly disclosed.
Third-Party Cookies Crackdown
A third-party cookie tracks the user’s browsing history and enables personalized ads based on their activities. In addition to Google, these cookies were disabled in Apple’s (AAPL) Safari browser. The continued utilization of third-party cookies has facilitated the cross-site tracking of user activity on browsers. Recognizing the privacy concerns associated with this practice, tech companies are removing this tracking capability.
The potential loss of cookies could pose a challenge for advertising companies, as it limits their ability to identify and target internet users. Thus, media companies are exploring ways to obtain customer information, such as email addresses and logins, through registration pages.
Is Amazon a Buy, Sell, or Hold?
With 39 unanimous Buy recommendations, AMZN stock has a Strong Buy consensus rating. Analysts’ average price target of $208.58 implies 22.5% upside potential over the next 12 months. Shares of the company have declined by over 66% over the past year.
