Google’s recent reversal on cookie deprecation has given publishers a little more breathing space when it comes to moving away from third-party cookie based user profiling. However, this is nothing more than a stay of execution. When Google gives users the power to opt out of tracking cookies, publishers will likely experience signal loss comparable to the introduction of the App Tracking Transparency framework by Apple. In that case, opt-in rates plummeted to a low of 16% and had a significant impact on publisher ad revenues.
Cookies and mobile devices IDs aside, publishers are also having to adjust to signal loss in everything from IP hashing to User Agent Strings. Clearly, at some point soon publishers will need to implement new solutions for ID resolution and audience addressability if they are to maintain or grown their ad revenues.
Authentication and beyond
Of course, authenticated solutions will be part of this mix. Authenticated IDs are verified by user data when they log on to a walled garden, and so offer a deterministic approach to resolving identities and building audiences. However, they cannot be the whole solution. This is because authenticated IDs, while offering privacy-compliant tracking, face challenges in scale and verification on the open web, tied as they are to the walled gardens where the user has an account. Each walled garden can verify its users internally, but these IDs cannot easily be used to verify identity or track preferences across unrelated sites.
Fortunately, the adtech industry is innovating new IDs that are much better suited to verifying users and building audiences at scale. Telco-verified IDs are perhaps the most impressive in this regard. The technology enables publishers to recognise returning visitors without needing to use their personal data or having knowledge of their true identities. This is achieved through a publisher ID that is securely verified using telco network intelligence, for cross-device / cross-site visibility. Similarly, telco-verified IDs can also enable publishers to build pseudonymised first-party profiles of verified users across devices and web domains for rich, accurate, and lucrative addressable audiences.
However, telco-verified IDs are just one solution in an increasingly rich ID landscape. This landscape comprises everything from pseudonymous ID graphs and open-source frameworks for universal IDs to AI-derived probabilistic IDs, and much else besides. Publishers are faced with an astonishing array of options from major players including The Trade Desk, LiveRamp, ID5, Audigent, Lotome, Zeotap, Utiq, and, of course, Novatiq. The challenge for publishers is how to make sense of this ID landscape and make the right technology choices.
The case for ID interoperability
Here, interoperability should be seen as a touchstone for success. The fact is that the adtech ecosystem is fragmenting. There will be no single solution to step into the shoes of third-party IDs. Rather, publishers will need to select the best mix of solutions for their specific requirements and adapt this mix as their needs change over time. When selecting IDs, the first question publishers should therefore ask is whether it is interoperable or not.
In a world where large platforms like Google and Facebook have traditionally dominated digital advertising, interoperable IDs will give publishers much greater control. No longer needing to rely on just one business or tech stack to achieve their goals, publishers will be free to work with a stable of partners to find the perfect balance of scale, reach, and cost to make their ad businesses as profitable as possible.
Build interoperability into your ID strategy
As the digital landscape inevitably shifts away from third-party cookies, the importance of interoperable ID solutions in publishers’ strategies cannot be overstated. With the phasing out of traditional tracking mechanisms and the tightening of privacy regulations, adopting a flexible, interoperable approach will be vital.
Such an approach allows publishers to seamlessly integrate various ID technologies, thereby enhancing user privacy, sustaining audience engagement, and boosting ad revenue generation. Focusing on interoperability will enable publishers to adapt to rapid market changes and regulatory demands effectively. Furthermore, it will empower publishers to maintain a competitive edge in a fragmented ad tech ecosystem. By prioritising interoperability, publishers can ensure they remain at the forefront of innovation and continue to thrive in a privacy-first world.
