Identity Solutions Demystified: How They Work and Why They Matter
To level understanding throughout the conversation, de Leon kicks off the discussion by asking:
What are identity solutions?
Malone takes the lead, explaining that identity solutions are technologies developed by data companies to track users across various channels, platforms, and devices without relying on third-party cookies. These solutions utilize authenticated traffic and opt-in mechanisms to provide a persistent, non-PII (Personally Identifiable Information) ID for each user, maintaining privacy while allowing targeted advertising.
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Diving deeper, de Leon probes into the mechanics of identity solutions, specifically without the use of third-party cookies by asking:
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Without third-party cookies, how do ID solutions track the entire customer journey?
Calderon elaborates that these systems primarily leverage first-party data collected directly from users. By allowing users to opt in and out, these solutions create a persistent identifier that works across all advertising channels, respecting user privacy and compliance requirements.
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With a better understanding of how these solutions enable targeted advertising, de Leon moved the conversation forward, asking:
What are some of the benefits advertisers gain when using ID solutions?
Malone highlights the main advantages of utilizing identity solutions, such as unified user profiles, improved attribution modeling, and personalized messaging. These benefits contribute to a better customer experience by enabling more relevant and targeted advertising without invading privacy.
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Safeguarding Privacy: The Backbone of Identity Solutions
Understanding that privacy is a paramount concern, de Leon inquires:
What are some elements that make ID solutions privacy-compliant?
Calderon explains that these ID solutions have three primary fundamentals to ensure privacy compliance: transparency, control, and the opt-in/opt-out mechanism. These pillars allow users to understand how their data is used and give them the power to control their participation.
Overcoming Identity Solution Challenges
Because so many advertisers have long relied on Google’s third-party cookies, de Leon prompted Malone and Calderon to address any potential challenges advertisers may face as they transition away from beloved cookies to different data sources, such as alternative IDs. She asks:
What challenges do you foresee advertisers facing as they switch from third-party cookies to ID solutions?
Malone notes that integration across the advertising ecosystem is a significant hurdle. Moreover, relying on opt-in data could potentially limit scale, particularly for smaller publishers. Ensuring interoperability and getting buy-in from all parties involved are crucial steps toward overcoming these challenges.
Key Players and Choosing ID Solutions Wisely
As the conversation shifts to the current identity solutions available, de Leon asks:
What are some ID solutions on the market right now?
Calderon and Malone outline several key players making strides in the market, such as UID 2.0 and LiveRamp ID. They stress the importance of each solution’s unique advantages and limitations, highlighting the open-source nature of UID 2.0 as a beneficial feature for industry-wide collaboration and development.
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Choosing the right identity solution requires careful consideration. de Leon closes the conversation by asking:
What should advertisers think about when evaluating an ID solution for their campaign?
Malone advises focusing on reach, KPIs, and the specific parts of the funnel an advertiser aims to target. It’s about finding the right mix of solutions that offer the optimal balance between reach, accuracy, and addressability.