Understand why the new ID concept is today the only solution for brands and sales

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Text by Pyr Marcondes, Senior Partner at Pipeline Capital Tech.

In English, they use the term Identifier to talk about it. It’s the ID.

For years, the entire digital media and online sales ecosystem used third-party, publicly captured IDs captured by cookies and distributed in bulk over the internet as the basis for activating their online communication and marketing mechanisms.

It was the solution to the proliferation of mobile devices and countless new digital environments, which made identifying users and consumers a chaos.

Most target audiences, however, do not surf while logged in to all these channels and with the fall of third-party cookies, the chaos will get worse and the cost of capture and identification will rise.

New IDs fall into a few categories and understanding what they are and how they work will be vital to the future of your brands and your sales.

The new realm of First-Party Identifiers

They are designed to provide identification capabilities and enable campaign strategies such as targeting, frequency capping, and measurement without using third-party cookies or mobile ad IDs.

Publisher-Based Identifiers: Publisher-based first-party IDs are specific to the digital property they are captured on. They help segment, optimize and measure campaigns, but within the closed environment of each one of them. They fail to help with multi-device and multi-context identification.

Universal Identifiers: First Universal IDs attempt to resolve user identity across domains and devices, but need to rely on other signals to accomplish this. Two identity resolution methods have emerged to help brands reconcile users across domains and devices: deterministic matching and probabilistic modeling.

Deterministic Modeling: Deterministic identity solutions offer limited scale as they rely on signals from publicly available IDs on publisher websites. The challenge with deterministic matching is that the universe of logged-in users is very low, limiting the available deterministic signals and therefore the scale that an exclusively deterministic solution can offer. ID5’s State of Digital Identity 2021 survey found that nearly 70% of publishers have 30% or less logged in users, and 44% have less than 10% authenticated users.

Thus, deterministic matching is valuable when marketers require a high level of confidence that the correct user is being targeted. It’s the bottom of the funnel, ideal for campaigns with a niche target audience and more personalized communication. Here the cost is high.

Probabilistic Modeling: To solve the problem that comes with a lack of deterministic signals, some Universal ID providers have created solutions that leverage other signals to feed algorithms that probabilistically reconcile users across domains and devices. It’s the mouth of the funnel. Probabilistic identity resolutions use statistical models to group user interactions across domains, browsers, and devices. These interactions use AI, predictive algorithms. These algorithms assess the likelihood that attributes of these interactions, such as IP address, user agent, location, and other data, can be linked to an individual across a single device or multiple devices, and whether an individual belongs to a cluster, groups of look alikes.

The integration of models

To provide the ideal balance between accuracy and scale, and ensure maximum addressability and effective monetization for everyone on the chain, it is necessary to use deterministic signals to reconcile users across domains and devices. This data, combined with other signals, provides an effective source that feeds algorithms and machine learning. It is he who will probabilistically optimize the user’s identity and predict his behavior and his next moves. Probabilistic links validate deterministic correspondences.

Yeah, life just got a lot tougher and more technologically complex for brands and sales. If you are not determined in the implementation of these new systems, the great probability is the loss of your own identity in front of your consumer.

Text by Pyr Marcondes, Senior Partner at Pipeline Capital Tech.

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