Identity fuels the AdTech ecosystem, allowing user individualisation to remain at the heart of digital advertising. The ability to have an ID means we can cross-connect devices, while linking online and offline user profiles and behaviours (onboarding) through Ad-Tracking. Unless you happen to be a digital advertising giant like Facebook or Google, access to this identity is given through third-party cookies and mobile advertising IDs.
Cookies- fragments of code that track and store online customer journeys- allow advertisers to target users with personalised ads based on previously collected data. So, what happens to the not-so-giant industry players when privacy clamps down and restrictions tighten their grip? Google’s decision to remove third-party cookies from Chrome was the ultimate threat. How can small advertisers remain intact as we watch the cookie crumble?
The cookie-monster’s tracks have paved a path towards partnership. The current situation calls for collaboration to keep the ecosystem healthy for the far side of the pandemic.
The demise of third-party cookies
In a strive to generate relevant online consumer experiences, advertisers increasingly depended on data collection through cookies, identifying valuable audiences to target. Advancements in programmatic advertising and technology triggered the adoption and application of identity solutions. Progressively, privacy concerns deepened, with consumers rightfully demanding control and consent. Online users were no longer prepared to have their browsing histories and journeys watched like a hawk. So, the cookie-pocolypse commenced.
Of course, tailored digital advertising will continue. The removal of third-party cookies, combined with the tightening of GDPR privacy regulations, is set to bring about better transparency and control in the industry as a whole. Hopefully, the future of the digital advertising space will place privacy and trust at the top of the hierarchy.
Shared identity solutions
So, what are agencies, marketing teams, publishers, ad tech, and ad platforms doing to replace cookie-based marketing?
Universal ID’s have been signalled as the top solution to manage identity and online targeting as third-party cookies decline. Essentially, Universal IDs are identifiers used by parties for both identification and targeting. The solutions can make it easier to identify the same user across various platforms. For marketers and brands operating in the programmatic advertising space, there are thousands of providers with their own cookie and device-based IDs. A Universal ID solution allows these to be matched with other providers to identify the same user in order for the entire digital marketing ecosystem to function successfully.
Essentially, these new universal IDs are ‘shared identity solutions’ without the need for a third-party software to sync information and data like it has done in the past. The ultimate purpose is for the same ID to be shared between publishers and advertisers, providing a common advertising technology language that can be understood by all those involved.
The importance of collaborating with the right partners is critical for the future of advertising technology. The chance for synergy allows for a collective industry shift, focusing on transparency, honesty and privacy-compliant practices. Now, more than ever, partnerships form a path to mutual success.
Impacts on the loyalty loop
The current spike in online traffic offers a golden opportunity for calls to action- such as getting customers to sign-up to newsletters or follow social media channels. This can increase lifetime value for publishers through taking care of audiences and ensuring that they remain loyal.
More than ever, publishers swing their focus to gaining loyal audiences. Publishers have a safe space to store their audience’s data and information. The new environment will demand high levels of data control, with programmatic safe havens becoming a necessity. Modern consumers value personalised brand experiences, and with access to data and information, publishers and advertisers can provide this. What the modern consumer also wants is transparency. Many are happy to consent to providing and sharing their data, but in return companies need to be open and honest as to how this information will be stored and used.
Advice moving forward
Currently, publishers and advertisers alike are struggling with huge shifts in the industry, with closures and high furlough causing a struggle for many. Remember, crisis is a catalyst for change, and this occasion should be used to take care of audiences through using data in a non-abrasive, mutually beneficial way. The lifetime value of customers is becoming increasingly important, with the opportunity for publishers and advertisers to have a resurgence and form allegiance. Now is the time to shine.