In online advertising, addressability can be defined as the ability to target a specific audience based on their interests and demographics. This allows advertisers to reach out to people who are more likely to buy products or services they offer. The concept of targeting an audience has been around for years but it was not until recently that technology became available to make this possible in real time.
Additionally, with the advent of social media platforms like Facebook, Twitter, Instagram etc., companies have started using these tools to track user behavior across multiple channels and use this information to create profiles about users which allow them to deliver relevant ads. For example, if you search for “best laptop” on Google, your results will include advertisements from different websites such as Amazon, Best Buy, Dell etc.
However, most of these sites do not know what kind of computer you want so they cannot show you only those ads. Instead, they show all kinds of laptops regardless of whether you would actually purchase one. To solve this problem, many companies now rely on data collected by other companies through third party cookies and web analytics software.
What will happen to advertising after cookies ?
Google and Apple have decided to deprecate the third party cookie because of privacy concerns. As a result, some ad networks stopped collecting personal information via cookies.
Advertisers need to find new ways to collect information about target audiences. One way is to ask permission before tracking someone’s browsing history. Another option is to let customers opt-in when they sign up for a service using a system like Wallkit’s Reader.ID product. However, there is no guarantee that everyone will agree to share their information. In fact, studies suggest that most people don’t even realize how much information is being tracked.
How to get ready for post-cookie challenges and start experimenting with ID solutions
As an industry, we should have addressed privacy concerns sooner because third-party cookies have shaped the powerful, performance-driven digital advertising environment of today. Efforts to support the open web and prevent further dominance from the walled gardens will be key.
The data-driven approach will give brands and publishers the transparency and control they need to create a seamless user experience.
Brand are in a good position to move quickly as they already have a wealth of first-party data. In order to meet advertisers’ needs, some publishers will need to play catch up and create a log in audience database. The ad tech industry may waver on the cusp of hard developments for a while longer as we wait for further clarification of the actions that will be taken by the likes of Chrome. This time can be used to create working groups and develop solutions that will prevent the walled gardens from taking over.
It is crucial that we use this time to rethink our strategies and business models. It is important for buyers to understand the differences between different supply partners. SSP partners’ willingness to share data should be measured by buyers, along with any special or unique values that set them apart.
Alternative methods should be explored by brands to generate similar results. The most effective cookieless alternatives will be discovered as advertisers begin testing them. It may be unacceptable if they find that an alternate ID approach yields 50% of the ROAS. Each brand will have to take ownership of the decision as to where on the scale they are willing to accept, for some this may be 90%, for others it may be 80%.
What is a Known Audience?
When it comes to addressability, a known audience is defined as any group of individuals whose characteristics are already known. A good example of this is email marketing where marketers send messages to groups of subscribers based on certain criteria. They may choose to segment emails based on age, gender, location, income level, occupation, hobbies, education levels, marital status, number of children, political affiliation, religion, ethnicity, language spoken at home, interest in sports, favorite food, preferred music genre, etc.
Publishers will need to work with partners that are willing to support their business. Audience addressability strategies offer identity solutions that deliver against monetization and performance goals across all platforms, channels, and ad formats. The future of influential, cost-effective ad targeting is dependent on the ability to maintain a centralized database with non-redundant IDs. There are many benefits to using individual management interface for operating unique IDs. The reliance on a single platform greatly reduces the number of things that can go wrong. Publishers gain a better understanding of how each ID contributes to revenue, which allows them to partner with and help advertisers.
Why Do Publishers Need A Known Audience?
The walled gardens (Facebook and Google) gave an example to the rest of the advertising industry that they should follow in order to achieve success. It’s possible for media owners to duplicate this success with their own known audiences and have the advantage of holding more customer data than the walled gardens.
Advertisers can use known audiences to target their advertising campaigns. This allows advertisers to reach specific demographics or interests without having to pay for every single person who has visited their page. Advertisers also benefit from knowing exactly who their potential clients are. If they were able to identify a particular demographic, then they could tailor their message accordingly.
Which companies help publishers identify known audiences?
The companies that help publishers identify known audiences include data brokers like Acxiom, Experian, and Nielsen and audience management solutions like Reader.ID by Wallkit.
