What is Identity Resolution and How Does It Work?
As programmatic advertising continues to evolve, publishers are facing new challenges in effectively reaching and engaging their audiences. One of the biggest hurdles they face is understanding who their users are across various devices and platforms. This is where identity resolution comes in – a technique that is revolutionizing the programmatic advertising landscape.
“Identity resolution has become a necessary tool for advertisers and publishers as they work to provide consumers with personalized experiences in a transparent and privacy-safe manner.” – Anudit Vikram, Chief Product Officer, MediaMath.
“With this technology, we can now gain a deeper understanding of our users’ preferences and behaviors, which enables us to provide more targeted and relevant content.”
Identity resolution works by analyzing data from various sources such as email addresses, device IDs, cookies, IP addresses, and other identifiers, and consolidating them into a single, unified view of a user or customer. This allows publishers to connect the dots between user interactions across different devices and platforms, creating a more complete picture of their users.
The Importance of this tool in Programmatic Advertising.
In the programmatic ecosystem, identity resolution is a critical component that enables publishers to offer more personalized and relevant content to their users. This technology allows publishers to create audience segments based on user attributes and behaviors, which can then be used to target specific users with relevant content and ads.
There are several technological tools involved in identity resolution, including data management platforms (DMPs), customer data platforms (CDPs), and identity resolution providers (IRPs). These tools are used to collect, organize, and analyze user data to create a single, unified view of the user.
Issues Addressed
One of the main issues that identity resolution helps to resolve is the problem of ad fraud. By accurately identifying users across different devices and platforms, publishers can ensure that their ad impressions are being served to real users, rather than bots or fraudulent accounts.
Another issue that identity resolution helps to resolve is privacy concerns. With the increasing focus on data privacy and the upcoming deprecation of third-party cookies, publishers and advertisers are looking for new ways to connect with their users while respecting their privacy. Identity resolution allows publishers to create a more complete picture of their users without relying on third-party cookies or other intrusive tracking methods.
Finally, identity resolution also helps to address the issue of user experience. By providing more personalized and relevant content, publishers can create a better user experience that leads to increased engagement and loyalty. For example, a publisher who uses identity resolution to understand that a user is interested in outdoor activities can serve them with content and ads related to hiking, camping, or other outdoor activities, rather than irrelevant content that may lead to a negative user experience.
What’s next
The future of identity resolution in programmatic advertising is closely tied to the evolving privacy landscape. According to a recent study by eMarketer, 80% of publishers and advertisers plan to increase their investment in identity resolution solutions over the next two years.
“Identity resolution allows advertisers to connect with consumers on a more personal level, making sure that they receive the right message at the right time, which is key to building brand loyalty.” – Evan Hanlon, VP of Strategy and Partnerships, Xandr.
The upcoming deprecation of third-party cookies is one of the most significant privacy changes that will impact programmatic advertising. With third-party cookies on their way out, publishers and advertisers will need to find new ways to identify and target their audiences. Identity resolution is expected to play a critical role in this transition, as it allows publishers to create a more complete picture of their users without relying on cookies or other third-party identifiers.
But the future of identity resolution is not without its challenges.
One of the main challenges is ensuring that user data is collected and used in a way that respects their privacy. “Identity resolution is an essential tool for publishers and advertisers in order to effectively reach and engage their audiences while maintaining transparency and trust.” – Jocelyn Lee, Vice President of Marketing, Amobee. “If we don’t, we risk losing the trust of our users, which could have significant consequences for our business.”
Another challenge is ensuring that identity resolution solutions are interoperable across different platforms and ecosystems. This will be crucial as publishers and advertisers look to create a more seamless and integrated advertising experience for their users.
In conclusion, identity resolution is a powerful tool that is helping publishers to gain a deeper understanding of their users and deliver more personalized and relevant content, in addition is a powerful tool that helps to address critical issues in programmatic advertising such as ad fraud, privacy concerns, and user experience. By accurately identifying users across different devices and platforms, publishers can provide more personalized and relevant content, which leads to increased engagement and loyalty.
As programmatic advertising continues to evolve, identity resolution will become even more critical in helping publishers navigate the changing digital landscape.
The future is closely tied to the evolving privacy landscape in programmatic advertising. As cookies become less reliable, identity resolution will become even more crucial in helping publishers and advertisers understand and engage with their users.
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