Loading...

The future of identity in cookieless advertising

Published: August 15, 2023 by Hayley Schneider

The next era of identity is here

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.

Watch the recording of our Cannes panel, "What does the future of identity hold?"

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

Cannes Lions 2023 panelists: What does the future of identity hold?

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.

Check out more Cannes content:

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

Loading…
Meet today’s 5 distinct mom segments

The next generation of mothers have emerged and they are under more pressure than ever before. In addition to balancing work and family life, moms have the added stress of making sure they are keeping their children safe in our digital-focused society. Moms today have access to a myriad of online information including communities where members can address everything from the elimination of processed foods from their family’s diet to whether or not to vaccinate their children. In a recent in-depth analysis, Experian Marketing Services identified five distinct segments of moms and revealed their attitudes, behaviors, motivations and media and consumer preferences. With these insights, marketers can effectively target and engage each segment with more personalized messages. Striving Moms – This segment accounts for 27 percent of moms. They are predominantly young, diverse, often single women who have confidence and aspirations of success. Fast facts: They commonly view money as the best measure of success They are more likely to have kids under the age of five They are tech-savvy and the segment most likely to say they need to be connected to the Internet from the minute they wake up until the moment they go to sleep They have a keen sense of fashion and are tuned in to current styles and consumer trends Conventional Moms – This segment accounts for 20 percent of moms. Although most of them have full-time jobs, family still comes first and faith plays an important role in their life. Fast facts: They are the most likely to drive an SUV or mini-van While discretionary income is plentiful, they have little interest in shopping They are active on social media; they like to post photos, write product reviews and read articles shared by friends They often turn to prepared foods or simple recipes to put food on the table due to their busy schedules Alpha Moms – This segment accounts for 19 percent of moms. They are high octane lean-in moms, early adopters and trendsetters with full-time jobs and packed calendars. Fast facts: They wear designer clothes, drive the latest model car or SUV and have the latest electronics They will do whatever it takes to keep a youthful appearance The environment is important is to them, and they are supporters of the arts They are heavy users of social media and leverage it to interact with brands and share opinions Modest Moms – This segment accounts for 16 percent of moms. Like conventional moms, they are family and faith-oriented but they have more modest means and prefer a simple life. Fast facts: They prefer to indulge their kids with the funds they have rather than buy shiny new gadgets Family and faith are the most important things to them Nearly one-third are stay-at-home mothers Their main source of entertainment is watching television They are heavy users of social media and leverage it to interact with brands and share opinions Maverick Moms – This segment accounts for 18 percent of moms. They are independent trailblazers who are not afraid to make unconventional life choices. Fast facts: They are environmentally conscious, spiritual and prefer to buy organic and natural products While they are the most likely to be stay-at-home moms, they are also the most likely to own their own business They lead uncomplicated lives and use technology and social media with caution They prefer to postpone purchases for special occasions and have no trouble saying no to their kids Want more insights? Check out The Mom Report for deeper insights into the attitudes, behaviors, motivations and media and preferences of these five types of moms. You’ll discover tips to help target your best customers and craft messaging and offers that are sure to resonate.  

Jan 29,2015 by

3 reasons to make mobile your priority

With the increase in alternate channels such as social media, many may think that email is no longer a valuable way to create engagement with consumers. On the contrary, email marketing is still one of the most effective tools for marketers — especially when it is paired with mobile. Experian Marketing Services sends more than 10 billion emails each month on behalf of major brands around the world, which gives us the unique ability to monitor trends in email performance and engagement over time. We report email marketing trends as well as the key performance indicators that shaped the success of the Experian Marketing Services clients’ email programs each quarter in our email benchmark reports. Mobile holds potential for email engagement One of the most noticeable trends that we’ve found in our research is that both mobile device usage and email engagement have increased. According to our Q3 2014 Email Benchmark report, the research also states that 53 percent of emails were opened on a mobile or tablet device in Q3. Although we can see an increase in both engagement and mobile usage, it is too early to tell if they are directly correlated. However, marketers should be paying attention — make mobile your priority, and you may have the ability to stay ahead of upcoming trends. “Because people are so connected with their devices today, it only makes sense that they would want to use their mobiles and tablets to check their emails in real time,” says Shelley Kessler, Manager, Reporting and Analytics, Experian Marketing Services. “This is why it is so important for marketers to adopt mobile optimization into their marketing plans. Without it, their overall engagement and click rates will significantly drop and they may ultimately lose their audience.” Catalog brands see email success with tablets To put the importance of mobile into perspective, let’s dig deeper: During Q3 2014, the majority of email opens occurred on mobile phones or tablets for catalogers, consumer products and multichannel retailers. Specifically, for multichannel retailers, 60 percent of all of their emails occurred on a mobile phone or tablet and 50 percent of their total clicks.  Meanwhile, catalogers had the highest percentage of tablet use with 18 percent of email opens and 13 percent of clicks occurring on tablets. Mobile can help create a relationship On a daily basis, a digitally connected customer’s inbox will be overwhelmed with hundreds or even thousands of different messages from marketers. To stick out from the crowd, marketers should be thinking of other ways to engage consumers. Shelley Kessler suggests creating a direct mobile messaging program: “Start a mobile messaging program if you have not already done so. If you have not developed a mobile database, start asking for customers’ mobile numbers in addition to email addresses and other basic information.” By utilizing mobile in ways that have not been done before, marketers have endless opportunities to get ahead of the curve. To learn more about these trends as well as others, download a free copy of our Q3 2014 Email Benchmark Report. Keep an eye out for the upcoming Q4 2014 Email Benchmark Report from Experian Marketing Services which will publish at the end of February.

Jan 27,2015 by

The equitable exchange – why personalization is our duty

Marketers: personalization is our duty Customers willingly give brands a lot of information. Some brands collect names, birthdays, message preferences and location in addition to contact information like email address, phone number and physical address. Brands that connect through Facebook and other social media accounts gain access to even more information – a person’s likes, friends/followers, age, demographics and more. Why are so many consumers willing to share this information? In a recent webinar, Ed Kowalski, Senior Director of Strategic Services at Experian Marketing Services refers to this phenomenon as the equitable exchange – customers provide companies with personal information because they believe it will enhance their brand experience. In return, marketers have a duty to responsibly use that data to benefit the customer. Personalization is an oft-discussed strategy in marketing, but many marketers struggle to make it a reality. In fact, a recent study found that 94 percent of companies have challenges relating to personalization. Yet marketers continue to collect more customer data – without a clear plan to utilize any of the data in a personalized context. Consider a brand that collects birthdate as part of its subscription process. As a consumer, I will only provide my birthdate if I can imagine a benefit to doing so. And I can – the brand may send me personalized well-wishes or even a special offer on my birthday each year. Because I’m willing to share my birthdate, I expect that the brand will use that data to engage me on a personal level. If they don’t, I’m likely to feel that the data I shared was not used productively, which will damage my perception of the brand and make me more reluctant to share information with them in the future. This concept extends to behavioral data too. Consumers often realize that companies may have data on their past purchases, browsing behavior and more. With this assumption in mind, they expect this data to be used to create more relevant brand experiences as well. Remarketing campaigns like abandoned cart emails and display ads targeted by browse behavior are increasing in popularity, as 69 percent of marketers in our most recent survey run these types of campaigns. This means customers are coming to expect them. So what does this mean for marketers? Not only is it a best-practice to personalize messaging based on customer data, but it’s often a requirement. Consumers are saying, “Show me that you know me.” As marketers, we need to make good on the unspoken promise of this equitable exchange. It doesn’t need to be hard. Check out the slides below or watch the webcast to learn how brands can begin to implement more personalized, relevant messages today.

Jan 22,2015 by

Subscribe to our newsletter

Enter your name and email for the latest updates

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

About Experian Marketing Services

At Experian Marketing Services, we use data and insights to help brands have more meaningful interactions with people. As leaders in the evolution of the advertising landscape, Experian Marketing Services can help you identify your customers and the right potential customers, uncover the most appropriate communication channels, develop messages that resonate, and measure the effectiveness of marketing activities and campaigns.

Visit our website

Subscribe to our newsletter

Stay up to date on the latest industry news and receive expert tips from our marketing experts.
Subscribe now!