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What are they?
Universal IDs (UIDs) are a type of identifier that can be legally used to track users across multiple websites. They are designed to replace third-party cookies, which are small pieces of data that are stored on a user's computer when they visit a website. Third-party cookies have been criticized for their privacy implications, and many browsers are phasing them out.
UIDs are created by combining a user's device ID, browser fingerprint, and other pieces of data. This unique identifier can then be used to track the user's browsing activity across multiple websites. UIDs can be used for a variety of purposes, such as targeting ads, measuring website traffic, and preventing fraud.
There are a number of different UID solutions available, including:
- Shared ID: SharedID is a publisher-controlled identifier that aims to help publishers serve targeted ads to their users by leveraging user IDs. It is a pseudonymous identifier that is not reliant on cookies or mobile ad IDs. SharedID is created by the SharedID.org consortium, which includes publishers, ad tech companies, and privacy advocates. SharedID works by creating a unique identifier for each user that is based on their browser fingerprint and other device-specific information. This identifier is then shared with advertisers and other parties in the ad tech ecosystem. This allows advertisers to target ads to users based on their interests and browsing behavior.
- Panorama ID: Panorama ID is a global, people-based, identity solution for the open web. It is built from multiple inputs (web, mobile, CTV, and customer-specific IDs). The ID is freely accessible to and interoperable across the cookie-challenged web. Panorama ID is a pseudonymous identifier that is not reliant on cookies or mobile ad IDs. It is created by Lotame, a global data solutions provider.
- The Trade Desk's Unified ID 2.0: The Trade Desk is a marketing technology company that has developed a UID solution that is based on first-party data. This means that users have to opt-in to be tracked, which protects their privacy.
- LiveRamp's Identity Graph: LiveRamp is a data management platform that helps companies connect their first-party data with third-party data. This allows companies to create more accurate profiles of their customers, which can be used for a variety of purposes, such as targeting ads.
- TransUnion/ Neustar/Fabrick: The Fabrick ID is a pseudonymized identifier that brands use to create cross-media linkages between advertiser demand and publisher inventory. The Fabrick ID is compatible with all major programmatic ID solutions, including LiveRamp ATS, UID2.0, and Unified ID 2.0. It is also compatible with the IAB Tech Lab's Transparency & Consent Framework (TCF).
- ID5: ID5 is an identity provider that helps publishers and advertisers connect with their audiences in a cookieless way. ID5's solution provides a stable, consented, and encrypted user ID to replace third-party cookies and mobile ad IDs. ID5 works by creating a unique identifier for each user that is based on their device fingerprint and other device-specific information. This identifier is then encrypted and stored in ID5's secure servers. Publishers and advertisers can then use this identifier to target ads to users, measure the effectiveness of their campaigns, and track user engagement.
UIDs are a promising alternative to third-party cookies. They offer a number of advantages, such as improved privacy, better targeting, and fraud prevention. However, UIDs are still a relatively new technology, and it is not yet clear how they will be adopted by the wider industry and over-reliance on a single vendor for these services can get a publisher into trouble as these businesses change strategy, pricing or financial solvency status.
Here are some of the benefits of using UIDs:
- Improved privacy vs the 3rd party cookie: UIDs can help to improve user privacy by making it more difficult for advertisers to track users across multiple websites.
- Targeting without a third party cookie: UIDs can help advertisers to target their ads without the cookie by providing them with an accurate understanding of their target audience.
- Reduced data leakage: UIDs theoretically protect publisher data better due to the fact that they do not share data across other vendors (as 3rd party cookies do).
However, there are also some drawbacks to using UIDs:
- Increased complexity: UIDs can add complexity to the advertising ecosystem, as advertisers will need to learn how to use them effectively and publishers need to work hard to manage multiple vendors and syne them to their user data
- Lack of transparency: some UIDs are not as transparent which could make it more difficult for users to understand how their data is being used.
- Frustrating and cumbersome to test: Many publishers are frustrated with the testing process and have developed testing fatigue due to the time and effort these test consume.
- Cost: To run a full-fidelity ID graph, publishers need to support multiple UIDs to maximize their addressability from all the various demand partners that use these UIDs (DSP, SSP, Agency, etc). This process can get expensive and time consuming and confusing if you don’t have a good partner to support you.
- Over-reliance: becoming dependent on only one UID is not a sound strategy. Publishers need to take a distributed strategy for UID partners. Support for many UIDs will increase addressability and maximize higher bid density. While more costly, the benefits of maintaining a graph with multiple UIDs is seen to be a better strategy and reduces dependency on a single ‘currency’.
While the new data-driven publisher stack will be as different as the new revenue portfolio for publishers, the universal identifiers have an important role to play to keep publishers revenue streams intact and functioning within the expectation of buyers.
To learn more about how you can leverage GrowthCode’s identity and data infrastructure to build your own ID graph, click here.