TL;DR: The union of DMPs and supply-side platforms (SSPs) facilitates direct connections between buyers and sellers, enhancing the media and data capabilities of both platforms to the benefit of all, writes Jürgen Galler, SVP, Data Products, TripleLift.
Targeting mechanisms that have underpinned digital advertising for decades are being phased out, motivating the entire industry to think outside the box and develop alternative solutions.
Not only is there now a legal obligation to protect user privacy, but consumers themselves are increasingly concerned about how their information is used. This puts the digital industry in a difficult position, as precise targeting relies on the rich data that consumers are increasingly choosing not to share. However, to research shows that data-driven personalization actually drives positive consumer responses and better business outcomes. So how can marketers and publishers ensure relevant advertising experiences without relying on third-party cookies and compromising consumer privacy?
Why the first party data will be the successor to the third party cookie
From contextual signals and engagement data to user login information, it will take a mix of information and solutions to meet the demands of the digital advertising industry. Publisher websites offer a very valuable source of first-party data, which can be leveraged across all browsers and does not depend on unreliable third-party syncs. The icing on the cake – since we’re moving away from third-party cookies now – is that it makes first-party data more efficient than its third-party equivalent. A TripleLift survey found that first-party data offers targeting accuracy at least twice that of third-party methods, with 70% or more.
It is equally important that consented first party data is compliant with privacy regulations and available for collection and use by all publishers. Despite this, to date, only a small fraction of publishers have been able to collect rich pools of data from their audiences, while the majority have relied on third-party data and cookies for targeting purposes. Finding solutions that can meet every publisher’s needs in the future is a top priority.
The union of DMPs and SSPs will benefit both publishers and marketers
Data management platforms (DMPs) allow publishers to better understand audiences, their behaviors and how they interact with content. Enriched proprietary data from savvy DMPs allows publishers to unlock insights they can’t access when relying on third-party data solutions. Doing this is also a key step towards building closer relationships between publishers and marketers.
The union of DMPs and supply-side platforms (SSPs) facilitates direct connections between buyers and sellers, bringing together the strong media and data capabilities of both platforms. For publishers, it gives them more control over monetization while for marketers, it provides a deeper view of audiences, allowing them to accurately reach and target specific segments. In addition, media buyers will be assured of the origin of the data they use, which will allow for more transparency and efficiency in the supply journey.
Changing media landscape creates new opportunities
These advantages have encouraged recent mergers and acquisitions in the advertising technology space, for example with the acquisition of 1plusX by TripleLift. Driven by the need for a viable, privacy-compliant alternative to the third-party cookie, TripleLift saw the benefits of combining its SSP and a leading DMP to enable first-party data enrichment including publishers and marketers have everything to gain.
The ad tech industry has seen nearly 1,500 M&A deals in 2020 and 2021, many driven by ongoing changes in audience targeting and the growing need for access to first-party data. Publishers and advertisers are increasingly recognizing the value of collaboration as a way to refine targeting capabilities and gain audience insights in a privacy-centric landscape.
Although the ongoing phase-out of the third-party cookie has caused one of the most significant upheavals the digital advertising industry has seen, it has also brought its drawbacks to light, facilitating the development of innovative solutions and experimentation. precious.
It’s no coincidence that first-party data is at the heart of solutions solving the privacy and identity conundrum: first-party data is more effective at driving results for publishers and advertisers without compromise user experience and trust between parties. So why wait for the cookie to completely disappear and leave money on the table? Solutions that provide first-party data activation capabilities are available now. As industry collaboration deepens, there’s no better time to forge partnerships and start reaping the rewards.
Jürgen Galler
SVP, Data Products, TripleLift
About TripleLift
TripleLift is the ad technology company reimagining ad placement at the intersection of creative, media and data. Its marketplace serves the world’s largest brands, publishers, streaming companies and demand-side platforms, executing over 1 trillion ad transactions every month. Part of the Vista Equity Partners portfolio, TripleLift has appeared on both the Inc. 5000 and Deloitte Technology Fast 500 for five consecutive years, was named to Business Insider’s list of Hottest Ad Technology Companies for three years back-to-back and received the Most Innovative TV Commercial award. Technology by AdExchanger in 2021.
By Donor
The above article is an opinion piece expressing the views of the contributing author and not necessarily the views of WNIP.
