We’re excited to introduce the next segment in our Q&A series, Ask the Expert! Ask the Expert features a series of conversations with product experts where we dive into the areas you care most about like identity resolution, targeting, attribution, and more. Our next segment features a conversation about sell-side targeting.
Mike Chowla, SVP of Product at OpenX joins us to chat with Experian’s SVP of Sales & Partnerships, Chris Feo. OpenX is the world’s leading sell-side platform for audience, data, and identity targeting. In their conversation, Mike and Chris review:
- The shift to targeting on the sell-side
- How first- and third-party data are being used on the sell-side
- How OpenX is thinking about alternative IDs
What is sell-side targeting?
Sell-side targeting optimizes the way buyers and supply-side platforms (SSPs) work together. This approach moves the responsibility of inventory and audience targeting from the demand-side platform (DSP) into the SSP, providing advertisers with increased reach and better performance.
With sell-side targeting, locating your target audience becomes easier as you have a more direct connection with publishers. This increases your ability to scale against a target audience. Specifically, the SSP directly matches the buyer’s audience or data segment to the publisher inventory and audience and automatically sends the impression to the buyer’s DSP of choice via a deal ID, providing advertisers with improved reach and performance metrics as well as control over their inventory. With more direct access, your budget can likely go further, and you can decrease your effective cost per mille (eCPM) and get more working media.
“Supply-side targeting is the next phase of how supply path optimization (SPO) and buyers will need to work more closely with SSPs.” – Mike Chowla, SVP, Product, OpenX
Buying on the sell-side vs. open exchange
When buying on the open exchange, you have access to a vast number of impressions. With sell-side targeting, you can apply your campaign targeting directly on the supply-side and activate those impressions through a deal ID. Sell-side targeting works across various formats including web display, mobile, in-app, and connected TV (CTV) for a seamless advertising experience.
OpenX offers the unique capability to match users using their device graph within their SSP. This means you can target users from traditional data sources such as cookies or mobile ad IDs (MAIDs) and reach them in CTV or app environments. This gives you even more reach and precision in your advertising efforts.
The role of first- and third-party data on the sell-side
Buyers are showing a keen interest in bringing their own first-party data into the process of sell-side targeting. Meanwhile, certain agencies have been actively involved in working with identity and data. OpenX is currently collaborating with several agency ID solutions such as Choreograph, Merkel, and Horizon.
Buyers are also purchasing third-party data and data segments from various providers through OpenX’s platform for sell-side targeting purposes. By utilizing this data on the supply side, buyers are able to increase the match rate against their first- and third-party data segments in all environments. This ultimately maximizes scale against these audiences and drives a more efficient CPM due to eliminating waste.
Measurement and attribution on the sell-side
In the current state of SSP advertising, there is more of an emphasis on targeting capabilities than measurement and attribution. That said, SSPs can provide granular log level reports that can be utilized for multi-touch attribution (MTA) or mixed media models (MMM). These granular insights not only inform measurement and attribution models, but they also provide valuable optimization insights such as clearing price.
Additionally, advertisers have all of the same reporting options that they’re used to getting through their DSP because their buys are activated via deal ID in the DSP of their choice.
What to consider when transitioning to sell-side targeting
There are two primary items you should consider when transitioning to sell-side targeting:
- Supply
- Reach
Reach
Collaborating with partners who have the right capabilities can greatly improve reach and audience extension across different devices. For instance, if you bring your first-party audience or a third-party audience and are identifying that consumer via a cookie or MAID, being able to extend that targeting segment to other devices and platforms can be highly beneficial.
Supply
It’s crucial to collaborate with partners who have the right access to supply and direct connections with publishers. While targeting is essential, it’s equally important to have high-quality supply to drive performance.
Reaching consumers in a cookieless future
Whether you’re targeting on the demand or sell-side, it always starts with the consumer and who you’re trying to reach.
Significant changes in the consumer privacy landscape are impacting advertisers’ ability to access various signals emitted by consumers through their devices and browsers. Recent developments from Apple and Google have further amplified this situation.
Alternative IDs as a solution to signal loss
In response, we’re seeing the emergence of alternative IDs like UID2, Ramp ID, and ID5. OpenX supports these types of IDs and considers them crucial for audience buying in a privacy-centric cookie-less future.
We are still in the early stages of this evolution. While some of the IDs have good coverage, cookies will continue to be the primary targeting method as long as they remain available.
Nevertheless, we see alternative IDs as one of several solutions that will become increasingly important as third-party cookies disappear. Contextual buying will also emerge, and a set of solutions will come together to enable advertisers to keep finding their audience in a cookie-less world.
Overcoming signal loss with identity resolution
Looking ahead, as we continue to lose signals due to the evolving consumer privacy landscape, we will witness two things:
- Continued fragmentation
- A wide variety of identifiers
Content will continue to be available on various devices. We’re currently experiencing the emergence of connected TV, but who knows what other devices will surface over the next five to ten years. As cookies disappear, which have been the primary identifier, and alternative IDs are introduced, the wide variety of identifiers will create further fragmentation. This highlights the need for identity in the future.
Identity resolution at Experian matches fragmented identifiers to a single profile to create a unified, cross-channel view of your consumers. Our identity resolution solutions can help future-proof your marketing strategies.
How Experian and OpenX work together
Experian is a key player in OpenX’s OpenAudience solution and helps to power many of their data segments as well as their identity graph. While OpenX collaborates with a variety of providers and operates a fully interoperable platform, Experian remains valuable to the core technology within OpenX’s SSP.
“Experian powers a lot of the data segments and identity graph that OpenX has in our OpenAudience capabilities as part of our SSP.” – Mike Chowla, SVP, Product, OpenX
Watch the full Q&A
Visit our Ask the Expert content hub to watch Mike and Chris’s full conversation on sell-side targeting. In the Q&A, Mike and Chris also share their thoughts on the impact artificial intelligence (AI) will have on the AdTech industry and their go-to sources for staying up to date on all things AdTech.
About our experts
Mike Chowla, SVP, Product, OpenX
Mike Chowla is the SVP of Product at OpenX where he leads product development and innovation, from customer discovery and user research to the development, delivery, and support of a market-leading product suite. Chowla holds a BS in Engineering from the University of Southern California, and an MBA from The University of Pennsylvania.
Chris Feo, Chief Business Officer, Experian
As SVP of Sales & Partnerships, Chris has over a decade of experience across identity, data, and programmatic. Chris joined Experian during the Tapad acquisition in November 2020. He joined Tapad with less than 10 employees and has been part of the executive team through both the Telenor and Experian acquisitions. He’s an active advisor, board member, and investor within the AdTech ecosystem. Outside of work, he’s a die-hard golfer, frequent traveler, and husband to his wife, two dogs, and two goats!
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The cookieless future is here, and it's time to start thinking about how you will adapt your strategies to this new reality. In a cookieless world, you will need to find new ways to identify and track users across devices. This will require reliance on first-party data, contextual advertising, and alternative identifiers that respect user privacy. To shed light on this topic, we hosted a panel discussion at Cannes, featuring industry leaders from Cint, Direct Digital Holdings, the IAB, MiQ, Tatari, and Experian. In this blog post, we'll explore the future of identity in cookieless advertising. We'll discuss the challenges and opportunities that this new era presents, and we'll offer our tips for how to stay ahead of the curve. How cookieless advertising is evolving Programmatic advertising is experiencing multiple changes. Let's dive into three key things you should know. Cookie deprecation One significant change is cookie deprecation, which has implications for tracking and targeting. Additionally, understanding the concept of Return on Advertising Spend (ROAS) is becoming increasingly crucial. The demand and supply-side are coming closer together Demand-side platforms (DSPs) and supply-side platforms (SSPs) have traditionally been seen as two separate entities. DSPs are used by advertisers to buy ad space, while SSPs are used by publishers to sell ad space. However, in recent years, there has been a trend toward the two sides coming closer together. This is due to three key factors: The rise of header bidding Header bidding is a process where publishers sell their ad space to multiple buyers in a single auction. This allows publishers to get the best possible price for their ad space, and it also allows advertisers to target their ads more effectively. Cookie deprecation As third-party cookies are phased out, advertisers need to find new ways to track users, and they are turning to SSPs for help. SSPs can provide advertisers with data about users, such as their demographics and interests. This data can be used to target ads more effectively. The increasing importance of data Advertisers are increasingly looking for ways to target their ads more effectively, and they need data to do this. SSPs have access to a wealth of user data, and they're willing to share this data with advertisers. This is helping to bridge the gap between the two sides. The trend toward the demand-side and supply-side coming closer together is good news for advertisers and publishers. It means that they can work together to deliver more relevant ads to their users. Measuring and tracking diverse types of media The media measurement landscape is rapidly evolving to accommodate new types of media, such as digital out-of-home (DOOH). With ad inventory expanding comes the challenge of establishing identities and connecting them with what advertisers and agencies want to track. Measurement providers are now being asked to accurately capture instances when individuals are exposed to advertisements at a bus stop in New York City, for example, and tracking their journey and purchase decisions, such as buying a Pepsi. To navigate cookieless advertising and measurement, we must prioritize building a strong foundational identity framework. What you should focus on in a cookieless advertising era In a cookieless advertising era, you will need to focus on two key things: frequency capping and authentic identity. Frequency capping Frequency capping is a practice of limiting the number of times an ad is shown to a user. This is important in cookieless advertising because it helps to prevent users from being bombarded with ads. It also helps to ensure that ads are more effective, as users are less likely to ignore or click on ads that they have seen too many times. Frequency capping is often overhyped and yet overlooked. Instead of solely focusing on frequency, consider approaching it from an identity perspective. One solution could be to achieve a perfect balance between reaching a wider audience and avoiding excessive repetition. By increasing reach in every programmatic buy, you naturally mitigate frequency control concerns. Authentic identity The need for authentic identities in a digital and programmatic ecosystem is undeniable. While we explore ways to connect cookies, mobile ads, and other elements, it's crucial to remember who we are as real individuals. By using anonymized personal identifying information (PII) as a foundation, we can derive insights about households and individuals and set effective frequency caps across different channels. Don't solely focus on devices and behaviors in your cookieless advertising strategy and remember the true value of people and their identities. What’s next for cookieless advertising? The deprecation of third-party cookies is a major challenge for the digital advertising industry. Advertisers will need to find new ways to track users and target their ads. Here are three specific trends that we can expect to see in cookieless advertising. First-party data is moving in-house Many major media companies, equipped with valuable identifier and first-party data, are choosing to bring it in-house. They are focused on using their data internally rather than sharing it externally. "Many larger media companies are opting to bring their identifier and first-party data in-house, creating more walled gardens. It seems that companies are prioritizing data control within their own walls instead of sharing it externally."laura manning, svp, measurement, cint Fragmentation will continue The number of identifiers used to track people online is growing rapidly. In an average household, over a 60-day period, there are 22 different identifiers present. This number is only going to increase as we move away from cookies and toward other identifiers. This fragmentation makes it difficult to track people accurately and deliver targeted advertising. This means that we need new identity solutions that can help make sense of these new identifiers and provide a more accurate view of people. A portfolio of solutions will address signal loss Advertisers are taking a variety of approaches to cookieless advertising. A few of the solutions include: Working with alternative IDs. This refers to using alternative identifiers to cookies, such as mobile device IDs or email addresses. These identifiers can be used to track people across different websites and devices, even without cookies. Working with data index at a geo level. This refers to using data from a third-party provider to get a better understanding of people's location. This information can be used to target ads more effectively. Working with publisher first-party data that's been aggregated to a cohort level. This refers to using data that is collected directly from publishers, such as website traffic data or purchase history. This data can be used to create more personalized ads. Working with contextual solutions. This refers to using contextual data, such as the content of a website or the weather, to target ads. This can help to ensure that ads are relevant to the user's interests. "Cookie deprecation is often exaggerated, and alternate solutions are already emerging. As data moves closer to publishers and first-party data gains prominence, the industry will adapt to the changes."mark walker, ceo, direct digital holdings There is no one-size-fits-all solution for cookies, and you will need to be flexible and adopt a variety of different approaches. How will these solutions work together? You can take a waterfall approach to cookieless advertising. A waterfall approach is a process where advertisers bid on ad impressions in sequential order. The first advertiser to meet the minimum bid price wins the impression. In the context of cookieless advertising, a waterfall approach can be used to prioritize different targeting signals. For example, you might start by bidding on impressions that have a Ramp ID, then move on to impressions that have a geo-contextual signal, and finally bid on impressions that have no signal at all. This is a flexible approach that can be adapted to different needs and budgets. Watch our Cannes panel for more on cookieless advertising We hosted a panel in Cannes that covered the future of identity in cookieless advertising. Check out the full recording below to hear what leaders from Cint, Direct Digital Holdings, the IAB, MiQ, Tatari, and Experian had to say. Watch now Check out more Cannes content: Our key takeaways from Cannes Lions 2023 Insights from a first-time attendee Four new marketing strategies for 2023 Exploring the opportunities in streaming TV advertising Maximize ad targeting with supply-side advertising Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. Latest posts
The rise of streaming TV advertising is revolutionizing the marketing landscape, bringing together the best of traditional television's broad audience reach and digital's precise targeting capabilities. Marketers now have a new platform to explore, but it comes with its own set of challenges and opportunities. To shed light on this topic, we hosted a panel discussion at Cannes, featuring industry leaders from AMC Networks, Disney, OMG, Paramount, Roku, and Experian. In this blog post, we'll explore the effectiveness of TV as a performance channel and audience targeting. TV as a performance channel Television has come a long way over the years. The evolution of linear TV to connected TV (CTV) is opening new possibilities for targeting and performance measurement, like what we're accustomed to in search and display. However, there's still a way to go. What's preventing us from fully realizing the potential of CTV? Let's explore what's holding us back. Three challenges Advertisers are captivated by CTV, a media platform that combines the best features of TV and digital advertising. With its unparalleled data and identity capabilities, alongside the immersive TV experience, it has the potential to be a powerful performance channel. However, we still face three challenges as performance dollars take center stage. "CTV is a valuable household device that provides direct audience insights. However, to gain a comprehensive understanding of the household and the individuals in the household, we need different techniques. The implementation of such methodologies from user level profiles to algorithmic inferences are still evolving across different companies." Louqman parampath, vp, product, roku Client education Performance marketers and agencies are still primarily focused on social and search. It's important to reassure them that CTV aligns with their established standards. Optimize KPIs We need to address the challenges around attribution and incrementality. We should optimize for the KPIs that performance marketers desire, which are different from the metrics commonly used in social media and search marketing. Results-driven interactions You should invest in interactive ad formats and novel experiences to give users clickable options that deliver the instant impact of performance marketing. While conversions and purchases can happen after seeing an ad thanks to view-through attribution, your goal should be to make video ad experiences feel like performance-based engagements. This transition is crucial to building trust and familiarity among performance marketers and agencies. Strategies to effectively reach audiences across different mediums There are various mediums to connect with consumers — TV, digital, and mobile offer multiple avenues. Which strategies should you prioritize? Data interoperability When it comes to buying unified audiences, programmatically is the easiest route. By prioritizing data interoperability, you can ensure a seamless buying experience across all screens. "At Disney, we focus on data interoperability with industry solutions such as The Trade Desk/UID2, Google PAIR, and Experian and the LUID, making it effortless to buy unified audiences programmatically across all screens. With an identity graph as the foundation of our tech stack, we help our clients reach their target audience across linear, digital, and streaming properties."jamie power, SVP, addressable sales, disney Advanced targeting capabilities in linear TV Don't limit your perspective on television consumption to traditional streaming platforms alone. While streaming is popular, it's equally exciting to see advanced targeting capabilities integrated into linear television. Viewer habits are shifting, with appointment TV becoming a thing of the past. Today, viewers have more options to watch a variety of programming, regardless of its age. "Streaming has become another platform for viewers to consume programming, and it's exciting to see digital targeting capabilities being applied to linear TV. Viewer behavior has changed, with more opportunities to consume programs at different times, so it's important to use targeting capabilities like linear addressable to effectively reach the audience across multiple channels."evan adlman, Evp, commercial sales & revenue operations, amc networks While live premieres still attract a substantial audience, utilize linear addressable targeting to reach viewers across channels. By doing so, you can ensure your message reaches the right viewers at the right time. The viewership landscape has diversified – it's time to adjust our strategies. Make TV viewing patterns predictable To bring predictability to the unpredictable and fragmented landscape of TV, advertisers can create products that simplify and unify the viewing experience. This allows users to effortlessly transition between episodes, resulting in a cohesive and engaging viewing journey. Watch our Cannes panel for more on the future of streaming TV advertising We hosted a panel in Cannes that covered the future of streaming TV advertising. Check out the full recording below to hear what leaders from AMC Networks, Disney, OMG, Paramount, Roku, and Experian had to say. Watch now Check out more Cannes content: Our key takeaways from Cannes Lions 2023 Insights from a first-time attendee Four new marketing strategies for 2023 The future of identity in cookieless advertising Maximize ad targeting with supply-side advertising Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. 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As a marketer, you know that the digital landscape is always changing. That's why it's important to make sure you're equipped with the right tools every step of the way – no matter how rapidly things change. You want to ensure your strategies and tactics stay ahead of any changes in technology or consumer behavior, so what new marketing strategies should be in your toolbox in 2023? Discover what industry leaders from Experian, Adweek, FreeWheel, Tubi, and Instacart had to say about what should be in every marketer's toolbox in 2023 at Cannes. Keep reading to learn the top four new marketing strategies you need in your marketing toolbox for 2023 and beyond. 1. A plan for signal loss The first item you should have in your marketing toolbox is a plan for signal loss. The phasing out of third-party cookies presents both a challenge and an opportunity. This shift not only poses challenges but also opens up opportunities for alternative strategies. On the one hand, it makes it more difficult to track users across channels and measure the effectiveness of marketing campaigns. On the other hand, it forces marketers to focus on building relationships with their customers and collecting first-party data. Consumer behavior is changing When we consider signal loss in a traditional sense, we think of the implementation of iOS 14, where we couldn't track click-based data from campaigns. It's important to reflect on the fact that the paid media ecosystem needed to adapt to new consumer realities. Younger demographics are less likely to click on ads and instead engage in video environments. They discover brands through platforms like TikTok or Instagram. It's crucial to understand how people behave, where they discover products, and where influence takes place. This understanding becomes even more vital when targeting a young audience demographic. Four things to consider when planning for signal loss There are four things you should consider when building out a plan to address signal loss and fragmentation. Channel diversification You need to reach your customers on the channels where they are already spending time, such as social media, email, and your own website. You should work with platforms that have first-party data to understand how your customers interact with your brand. Data privacy You need to be transparent about how you are collecting and using customer data. You should also anonymize data whenever possible. First-party data First-party data is now more crucial than ever, awakening its importance in shaping our actions. The combination of channel diversification and first-party data will be essential in the years to come. By focusing on these two areas, you can build stronger customer relationships and create more effective marketing campaigns. Contextual targeting Contextual targeting is emerging as a viable method to deliver more relevant content to your intended audience. By embracing signal loss, the alternative new marketing strategies that are emerging as a result, and adopting a privacy-centric mindset, you can navigate cookie deprecation. 2. Collaboration The second item you should have in your marketing toolbox is collaboration within the AdTech ecosystem. To address signal loss and changes in privacy, moving toward a more collaborative, holistic marketing ecosystem is key. Two ways we can achieve better collaboration Here are two ways we can create better collaboration in the AdTech ecosystem. Enable interoperability We should aim to create an ecosystem that fosters collaboration between marketers, publishers, advertisers, ad tech companies, and more. When we enable seamless interoperability, everyone can use the best data available. Use clean rooms We are witnessing a growing trend of collaboration between parties, where buyers and sellers share data in these secure environments. Clean rooms can help us develop data strategies in a controlled manner. 3. Generative artificial intelligence (AI) The third tool you should have in your marketing toolbox is generative AI. Benefits of implementing AI There are three main benefits to implementing AI within your marketing strategy. Enables creativity Although AI and machine learning have long been part of our toolbox, this moment marks an extraordinary acceleration that expands our capabilities. Copywriters can now create visuals, and art directors can write compelling copy. It's an extension of what we're capable of, potentially alleviating the burden of repetitive tasks and enabling more time for collaboration, creativity, and strategic thinking. By embracing generative AI, we can preserve valuable talent, prevent burnout, and invigorate the advertising industry. Enables more personalization The rise of personalization with AI has significantly increased the demand for tailored experiences. People now willingly allow AI agents to read their emails, hoping for quicker and easier responses. This shift signifies a change in the previous emphasis on privacy and consumer preferences. Consumers now see the value in exchanging personal information for more targeted services. E-commerce has already witnessed this transformation with customized ads based on individual preferences and behaviors. For instance, if a CPG brand notices you're not purchasing meat, they won't serve you ads for meat products. However, it's crucial to strike the right balance between being useful and intrusive. Users want relevant information that aligns with their needs without feeling intruded upon. As we navigate this path, we must ensure that personalization remains beneficial and respectful of user preferences. Helps drive impactful results and customer satisfaction The tool is a perfect analogy for improving your job performance and business operations. Having the right data input to feed the machine is crucial, just like using the right ingredients to cook a perfect meal. Keeping the consumer in mind throughout the process is key. You can ensure customer satisfaction by putting the right ingredients in and allowing the machine to work its magic. Scaling up, repeating, and refining the process will drive impactful results. 4. First-party data The fourth item you should have in your marketing toolbox is first-party data. Benefits of implementing a first-party data strategy Moving from a third-party cookie world to a first-party cookie world brings about significant transformation. Here are two benefits of implementing a first-party data strategy. Greater accuracy The shift to first-party cookies ensures greater accuracy, enabling us to establish critical mass through secure partnerships. This empowers us to strengthen and refine our personalization capabilities, much like Amazon's ability to anticipate customer needs before they arise. When you can predict and understand customer behaviors with remarkable precision, you can reach your customers with tailored and creative ads. "Building a robust first-party data strategy should be a central discussion for marketers, involving key stakeholders such as CEOs and CMOs. Quality and precise data are paramount, and while first-party relationships with consumers form the foundation, even established brands benefit from strategic partnerships. Together, we can unlock the potential of accurate and meaningful data-driven marketing."jeremy hlavacek, cco, experian Identify high-growth audiences First-party data can help you identify audiences with the greatest growth potential, ultimately optimizing marketing dollars for greater efficiency. Watch our Cannes panel for more new marketing strategies for 2023 We hosted a panel with Adweek in Cannes that covered what should be in every marketer's toolbox this year. Check out the full recording below to hear from leaders at Tubi, Freewheel, Instacart, Adweek, and Experian. Watch now Check out more Cannes content: Our key takeaways from Cannes Lions 2023 Insights from a first-time attendee Exploring the opportunities in streaming TV advertising The future of identity in cookieless advertising Maximize ad targeting with supply-side advertising Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. Latest posts