TL;DR: Uniting DMPs and supply-side platforms (SSPs) facilitates direct connections between buyers and sellers, enhancing the media and data capabilities of both platforms for the benefit of all, writes Jürgen Galler, SVP, Data Products, TripleLift.
The 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 duty to protect user privacy, but consumers themselves are becoming increasingly concerned about how their information is used. This places the digital industry in a challenging position as accurate-targeting relies on the rich data consumers are increasingly opting out of sharing. However, research shows that data-driven personalization actually drives positive consumer responses and better business outcomes. So, how can marketers and publishers ensure relevant ad experiences without relying on third-party cookies and compromising consumer privacy?
Why first-party data will be the third-party cookie’s successor
From context signals and engagement data to user login information, it will take a mix of insights and solutions to fulfill the requirements of the digital advertising industry. Publisher websites offer a highly valuable source of first-party data, which can be leveraged across browsers and doesn’t depend on unreliable third-party syncs. The icing on the cake – as we are now moving away from third-party cookies – is that this makes first-party data more effective than its third-party equivalent. A TripleLift survey found that first-party data delivers targeting accuracy that is at least double that of third-party methods, with rates at 70% or higher.
Equally as important is that consented first-party data is compliant with privacy regulations and available to gather and leverage by all publishers. Despite this, to date, only a small fraction of publishers have been able to gather rich pools of data from their audiences, while the majority have depended on third-party data and cookies for targeting purposes. Finding solutions that can meet the needs of every publisher going forward is a high priority.
Uniting DMPs and SSPs will benefit publishers and marketers alike
Data management platforms (DMPs) empower publishers by helping them form a deeper understanding of audiences, their behaviors, and the ways they engage with content. Enriched first-party data from savvy DMPs lets publishers unlock insights they cannot access when relying on third-party data solutions. Doing this is also a key step towards building closer relationships between publishers and marketers.
Uniting 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, this offers them more control over monetization while for marketers, it provides a more in-depth view of audiences, allowing them to accurately reach and target specific segments. What’s more, media buyers will be assured of the origin of the data they use allowing for more transparency and efficacy in the supply path.
The evolving media landscape is creating new opportunities
These advantages have encouraged recent mergers and acquisitions in the ad tech space, for instance with TripleLift’s acquisition of 1plusX. Motivated 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 that both publishers and marketers stand to gain from.
The ad tech sector witnessed close to 1,500 M&A deals across 2020 and 2021, with many of them driven by the ongoing changes to audience targeting and the growing need to access first-party data. Publishers and advertisers are increasingly recognizing the value of collaboration as a means of refining targeting capabilities and unlocking audience insights in a privacy-centric landscape.
Although the ongoing phasing out of the third-party cookie has caused one of the most significant shake-ups the digital advertising industry has seen, it has also brought to light its drawbacks facilitating the development of innovative solutions and valuable experimentation.
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 outcomes for both publishers and advertisers without compromising user experience and trust between parties. So why wait for the cookie to fully disappear and leave money on the table? Solutions that offer first-party data activation capabilities are available now. As collaboration in the industry deepens, there’s no better time to forge partnerships and start reaping the rewards.
SVP, Data Products, TripleLift
TripleLift is the advertising technology company reinventing ad placement at the intersection of creative, media and data. Its marketplace serves the world’s leading 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, has been named to Business Insider’s list of Hottest Ad Tech Companies for three straight years and was awarded Most Innovative TV Advertising Technology by AdExchanger in 2021.