The GrowthCode Blog

The accurate and responsible use of UIDs and Identity will destroy The Identity Bridge to nowhere

Written by Jonathon Shaevitz | 6/10/24 10:45 AM

UID Predictability Is a precondition for UIDs and post-cookie addressability to succeed. Short-sighted fraud will destroy the ecosystem. Chase the rats out of the kitchen.

(Part 2 in the series on ID bridging. See the first post here. For a refresher, we are picking up from the last post and discussing how to remove the short-sighted and fraudulent practices out of the adtech stack.)

 

Assume that an ID is named IDX. For IDX to function in the ecosystem, multiple parties must utilize it effectively. This means its accuracy and quality need to be predictable. A publisher mints IDX, passes it up the chain either through Prebid or TAM or through secure signals in Google to the SSP, and then forwarded it to the DSP. The buy-side uses these alternative IDs and other first-party data signals to replace the third-party cookie. These signals are the new audience segments– not built on third-party cookies but on first-party data signals with full consumer consent. Advertisers use these IDs to create audience segments, cohorts, and other targeting criteria.

For a buyer to evaluate the effectiveness of a campaign, they need to assess whether the different elements that built up that campaign work. These include creative, frequency caps, targeting criteria, and others. However, if 20% of IDX IDs are different users from different browsers within the same household or simply picked as the most valuable ID, the ability to predict and optimize performance isn’t just compromised; it is lost. While individual publishers, tech companies, or other intermediaries might show some short-term uplift, it's built on the back of fraud. It will destroy the credibility of the open web, sending even more of the budget into the safe hands of Google and Facebook.

Beyond Deception: Regulatory Risks and Measurement Distortion

These deceptive practices were first called out a little over a year ago and continue to spread, tarnishing the industry's reputation. Some SSPs (Sell-Side Platforms) have been caught overwriting user IDs based on bidding parameters, further distorting the process. Companies lure publishers with promises of increased revenue, but these gains are built on deception.  Finally, as we have seen over the last few weeks, individual companies are getting called out and will be punished by the market. That is great, but it remains unclear where along the value chain this fraud is occurring.  It could originate from the publisher, a data partner, an SSP, or almost anywhere the bid request is touched. 

ID Bridging presents significant short-term risks beyond eroding industry trust.

  • Measurement and Attribution Disruption: When user IDs are manipulated, accurately tracking campaign performance and measuring ROI becomes difficult. This lack of transparency makes understanding what's driving results challenging and hinders campaign optimization efforts.
  • Regulatory Action and Legal Risks: ID bridging might violate regulations beyond GDPR and CCPA. Data privacy laws worldwide are evolving, and deceptive practices like ID bridging could lead to hefty fines and legal repercussions for the companies involved.

Beyond Solutions: The Long-Term Impact of an ecosystem that doesn’t trust addressability.

The continued use of ID Bridging could have severe long-term consequences for the programmatic advertising industry:

    • A Damaged Industry Ecosystem: Trust and transparency are necessary for the programmatic advertising industry to be sustainable. Publishers need help to monetize their content effectively and prevent advertisers from wasting resources on ineffective media; if a few selfish vendors poison the water, the value proposition for all stakeholders remains the same.
    • Eroding Consumer Trust: Deceptive practices like ID bridging ultimately erode consumer trust in online advertising. Users becoming more aware of these tactics may block ads altogether, hindering the entire ecosystem.
    • More Delays and Uncertainty. Google’s continued threat of third-party cookie deprecation seems real enough. The current date is ten months away (March 2025). If advertisers do not embrace UIDs for the independent publishing ecosystem, CPMs will continue to fall, and Contextual will be the only game in town. Combine this with Google’s new AI-assisted search, leading to fewer impressions and the downward spiral of independent websites. 

Make no mistake: ID Bridging is a dead end for everyone. The programmatic advertising industry needs solutions prioritizing transparency, user trust, and responsible data practices. 

But the solution is quite simple—enforce and follow the rules. In the example above, you have rules from PreBid and Terms of Service from the ID companies, SSPs, and DSPs, so ID Bridging is violating those Terms of Service and is fraud. 

What Should Publishers Do?

  1. Understand who is accessing and manipulating their first-party data signals. 
  2. Ask partners if they ever overwrite an EID returned by an ID vendor.
  3. Maximize legitimate signals.  Over 35 different ID modules have already been identified through Pre-Bid.  Including more signals will lead to higher CPMs, but not if there is manipulation. 

GrowthCode: Building a transparent  Future where first-party data is the core

GrowthCode provides ID management services as part of its core service of helping advertising stakeholders build and leverage first-party data and identity graphs. Along with other reputable companies in the industry, GrowthCode is trying to expand the number of UIDs used in every bid request, thereby providing the maximum signal strength for publishers and, in turn, delivering the best fidelity to the buy-side to identify and optimize against the right audience.  All that is required is an engagement with the different UI ID companies, understanding the terms of service, and following those terms. GrowthCode delivers its services in the clear light of day in prebid so all operators can see what's happening (we also offer the same service server-to-server for those that opt for this option). 

GrowthCode promotes responsible ID management and helps publishers and advertisers leverage first-party data. We advocate for industry collaboration to build a future based on transparency and trust.