Moving Programmatic Beyond Advertising Cookies

Marketing Innovation

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Moving Programmatic Beyond Advertising Cookies

Marketing Innovation

There’s a big problem in marketing today. And that problem is how the industry works with advertising cookies.

Cookies have been the standard mechanism for digital marketing since the rise of the internet. But the way the ecosystem works with cookies today is fundamentally flawed — and the problems are becoming more and more glaring. Some of the biggest problems advertising cookies include:

  • At best, cookies represent a device. But today the consumer journey is more complex than a single device a cookie supports. In a typical purchase decision, consumers see ads on multiple devices, visit physical stores, receive direct mail and email, and view TV ads.
  • Emerging channels do not use advertising cookies. These ‘cookieless’ environments typically use their own customer IDs which makes them unaddressable for programmatic demand.
  • Over half of all advertising is now on mobile devices and cookies are unstable in the mobile web.
  • Cookie syncing problems are immense. As pages load, the consumer can end up waiting seconds to see their desired content as hundreds of “cookie syncing requests” happen in the background. Additionally, in the programmatic bid process, there are a large number of advertising cookies with unresolved identity which result in low scale for people-based marketing campaigns, and low yields for publishers.

A Proposed Industry Solution

Today, LiveRamp announced a proposed solution to these problems by proposing to form an open industry advertising ID consortium for RTB, in conjunction with several partners on the demand and supply side of the industry (including AppNexus, MediaMath, OpenX, RocketFuel, LiveIntent, and Index). The partnership will provide a common identity framework in the RTB bidstream that the entire industry will be able to use to make people-based programmatic advertising seamless.

The consortium will be open to all industry participants, and our goal is to build a neutral identity framework that benefits everyone—including platforms, brands, agencies, data providers, and publishers.

The planned solution creates an open, industry-standard identity framework that has two components:

  • A device-level identifier. This ID must be open and common throughout the ecosystem.
  • A people-based identifier which consistently represents individuals across platforms, channels, and devices.

This ID should be a ubiquitous currency—meaning that all companies can seamlessly transact off it.

Who Benefits from the Proposed Solution?

Marketers and agencies will see better performance driven by seamless people-based targeting, measurement, frequency capping and suppression, and the ability to unify this with search, direct mail, email, and in-store visits. They will also be able to see the benefits of programmatic marketing in more touch-points as cookieless channels emerge like mobile, addressable TV, call centers, and Internet of Things.

Publishers and Supply-Side Platforms (SSP’s) will see high higher CPMs thanks to having more inventory resolved to people-based data.

Demand Side Platforms (DSPs) will see more scale in programmatic campaigns, richer data for campaigns, the ability to extend their technologies into emerging channels, and less overhead with the elimination of the cookie sync process.

Data Owners will get increased scale and usage of data with increased identity resolution related to bid requests, and more ability to create custom segments and scores in real time.

Consumers will enjoy a more robust open web, less latency using the internet, more relevant experiences from marketers, and access to a more consumer friendly opt out.

We are excited to launch this initiative, and believe that moving programmatic advertising beyond advertising cookies will make the ecosystem look fundamentally different as it comes to a fruition—but with a stronger ecosystem and a stronger internet as a result.