The importance of ID-less inventory in a cookieless world

When Google announced the end of third-party cookies, advertisers and marketers were suddenly faced with the challenge of adapting their current efforts to meet the realities of a cookieless world

With the recent delay of this reality, marketers have a bit more wiggle room, however, that does not mean we should delay preparing for the inevitable.

As advertising continues to shift towards a privacy-first, cookieless world, identity has remained a topic at the forefront of the conversation. In this article, we break down what you should know about the ID-less environment and the importance it holds for the future.

User identification

First, let’s take a look at user identification, or user ID, which is what we use to identify a user on a website, software, or other system within the online environment. A key element in programmatic advertising, user IDs help efficiently reach the right users and accurately monitor campaign performance. Third-party cookies include unique user IDs that are assigned to an individual user and allow advertisers access to search history and other personal data (such as lifestyle and location) to effectively target users and monitor their campaigns.

However, the implementation of GDPR in Europe, as well as the new App Tracking Transparency (ATT) framework released by Apple, has brought the issue of user consent to the table. ATT is a privacy protection framework for all Apple device owners. With ATT, a notification appears when a user downloads or opens an app that asks if the user consents to be tracked across third-party apps and websites from their device.

In addition, Google’s announcement about ending third-party cookies back in early 2020 proves that the issue has taken center stage. These changes have solidified the need for marketers to figure out a new way to do business without user IDs, even with the announcement of Google’s delay until 2023.

Opportunities in the ID-less environment

While many in the industry may feel there are few ways to generate revenue in the same capacity in the ID-less environment, we believe that new changes can make way for new opportunities. There is potential to create a more transparent advertising landscape, and Google’s delay gives the industry time to prepare properly.

Of course, this will come with new challenges and kinks that need to be smoothed out, which is a crucial reason why marketers need to start preparing now. By testing and developing new strategies that do not depend on user ID, marketers have time to educate themselves and their partners as well as rethink their KPIs.

In this context, marketers will still need to tweak their performance measurement and media planning to reflect the ID-less environment. Targeting audiences with advanced options is a great way to do this. Some examples include:

• Semantic contextual targeting: Displaying ads that are relevant to the editorial content on the page in which they are displayed. This is an effective way to show relevant ads without using any third-party data.
• Measuring performance with CTR and CPM: Using click-through rates (CTR) and cost per mille (CPM) as performance indicators allows marketers to understand the effectiveness of their campaigns without using any personal data.
• Performance targeting: Using a KPI-based metric such as minimum completion rate or predicted viewability to target audiences without the need to use personal data.

All of this means publishers are now more in need of trusted, independent ad tech providers that can ensure they’re moving in the right direction and are compliant with all current and future privacy rules.

It is time for the industry to prepare itself in order to reap the benefits that are arising from this shift to a cookieless world. Understanding the importance and the gravity of this shift now gives you time to test and learn in order to take full advantage of what lies ahead.