5 Things to Consider Before Implementing an Identifier

The identity landscape is vast and increasingly complex. Google has confirmed it will phase out third-party cookies, but continues to delay the phaseout. A wave of privacy regulations in the US is challenging advertisers operating in multiple states. And an increasingly digital world has made it difficult to track users across TV, social media, and the open web.

Fortunately, identity solutions—from universal identifiers and identity graphs to data clean rooms and other privacy-preserving tools—are helping marketers maintain their ability to target and measure campaigns in the wake of these challenges.

Here is an excerpt from EMARKETER’s new Practical Guide to Identity Resolution and Alternative Identifiers, which takes an in-depth look at this complex and changing field, including an analysis of the key players.

Here’s a checklist to help your organization adopt alternative identity solutions.

1. Prepare your data

The first step is to conduct a data audit, said Eric Beane, director of data and analytics at VML.

“How much third-party data do you use today? And how do you use it? If that goes away, how much first-party data will you keep?” he asked.

• The audit will help identify gaps in organizational data and better understand what type of solution (or solutions) is appropriate.
• “My best advice is to make sure you have a good database and really understand what you’re trying to accomplish (with an identity solution) so that when you get data back, you can use it effectively,” Beane said.

2. Get organizational buy-in

Companies that want to keep their programmatic strategies relevant and successful should take the time to invest in one or more of these solutions. But identity solutions require time, talent, and potentially a significant financial commitment. To gain buy-in from the organization, especially the leadership, marketers must demonstrate the practical value of the identity solution and how it can benefit the business in the long term.

Before selecting an identity solution, consider scalability, accuracy, quality, cost, and interoperability.

It can be difficult to convince internal stakeholders that identity solutions are a critical need.

• According to a November 2023 survey by Mediaocean, only 13% of global marketers believe identity is the most critical advertising capability or media investment.
• Additionally, U.S. advertisers report that only 8% of their average budget allocation across all data types for targeting is spent on alternative identifiers, according to a November 2023 survey by Proximic.

3. Test and learn

“Google hasn’t stopped working yet, which doesn’t encourage people to adopt these solutions and actually test them,” said Dane Buchanan, head of data and analytics at M&C Saatchi Performance. “But we have to do it.”

• Testing while cookies are still in use can give marketers valuable insights into post-cookie measurement and targeting.
• “You need to prepare your CFO or CMO for a potential downturn in your business, what your ROI and cost per action (CPA) will look like,” Buchanan said.
• Currently, there is no single solution to match the effectiveness of cookies, so marketers must find the right combination of solutions.