Facebook should just start charging users that don't consent to tracking for targeted advertising. Etc. Problem solved, and we, the shareholders, will hopefully be happy too. It's been truly shit to own Facebook stock the last year.. Let's end this now and get back to writing the growth story. Please.
I doubt that works economically. The money advertisers can pay Facebook is, essentially, a percentage of all consumer spending. A percentage of the money you pay for toilet paper, dish soap, groceries, car insurance, credit cards, etc is funding the advertising budgets of those companies. The money consumers can pay Facebook is, at most, some portion of their discretionary spending budget. What's left over after buyi…
If nobody is allowed to build a demographic profile for cross-site cookies, the biggest negative impact will be to small sites. Previously their ad inventory could be relatively high value because it could be assigned targeted ads at scale, without site-specific work or having to trust the site itself. Now the site will at best self-report their user demographics. (1) they probably have poor visibility into their customer demo without something like Google Analytics to guide them and (2) it's difficult for a third party to verify any demographic composition they claim.
Ad targeting on these will likely be content based. I suspect this inventory mostly won't be eligible for lucrative display advertising anymore, if it was before.