Digiday – October 1, 2024
By Lance Brothers, Chief Revenue Officer, Adstra
The advertising industry is busy adapting to a multi-ID landscape, managing all the complications that come with an entirely new infrastructure for collecting, protecting, using and exchanging data. On top of this, the industry is closely monitoring Google’s case with the DOJ and preparing for the prospect of a breakup that could deepen these complexities.
To navigate these waters, many are turning to new ID management solutions that can help them enter this new era with all the functionality they need. While not all brands share the same needs, at a high level, they need to track users across data sets, devices and channels.
Brands need an identity spine with a combination of these functions:
Brands need an improved customer identity spine with a “golden ID” that enables total data interoperability and omnichannel marketing. They need to build premium audience segments, append attributes such as first- or third-party data and measure digital and cross-channel campaigns. Additionally, it’s necessary for brands to identify anonymous visitors, have a crosswalk solution between multiple IDs (both channel and partner) and establish a “pre-board” process to improve audience activation.
As brands try to set up an identity spine that can accomplish those tasks, they frequently run into roadblocks or places where the system breaks down. By understanding the appropriate level of control and interoperability and the details of setting up a successful identity spine, brands can overcome common roadblocks to deliver valuable solutions.
Identity spine usage affects how brands select and implement them
Getting an identity spine to work and accomplish everything a brand hopes isn’t as easy as simply paying a vendor and using new software. Proper use of an identity spine requires a lot of forethought.
For example, many brands are pursuing the functions listed above, but not all brands will use the full range. Some may, but some use cases are more important than others. How a brand uses the identity spine will impact the selection and implementation.
Ceding identity spine control reduces transparency
When selecting an identity spine, it might seem easy to find a technology that can manage everything for the brand — put trust in the solution provider, check the box and the task is done.
In this privacy-sensitive, tightly regulated era, that’s not always the smartest choice. Giving away control of the data and identity solution often means losing transparency in the data and the overall process.
Customer data platforms (CDPs) are an excellent example of this. Many are evolving with the times and presenting themselves as solutions for the multi-ID landscape.
However, many CDPs solve the issue of controlling data but lack any kind of transparency within the process. Brands may be able to compile their data into one place, but they lose insight into what their data says, which makes it difficult to draw actionable insights.
Forfeiting interoperability leads to communication issues and omnichannel troubles
“Enabling total data interoperability” should be the primary mantra of any brand exploring an identity spine. The future of marketing and advertising comes down to interoperability between systems. Brands may not grasp just how important that is until they are faced with the challenge of using multiple systems that can’t communicate effectively with each other.
Digital marketers have relied on cookies for years to move their data and audiences across systems. Third-party cookie deprecation (everywhere except for Chrome, essentially) and the subsequent move to multiple IDs will eliminate this level of interoperability. Tech stacks need to be flexible to manage all the various inputs, and then make those insights translatable across systems to ensure true omnichannel marketing.
Composable solutions offer a way to fill in gaps
Because brands are unique, some are happy with their existing providers who fill one or several of the above needs, however, they may require further help with other functions. Many brands have made considerable investments and aren’t necessarily looking to completely replace their existing stack simply because they need one or two new features.
This is why the industry has seen a rise in composable identity solutions. These adaptable solutions are both comprehensive and specific. They are modular, gap-filling solutions that can integrate into existing systems, quickly deliver value and complement existing investments. Whether a brand needs a complete solution or just a few functions that fill the gaps, composable solutions can provide an answer.
So, as brands work to build identity spines that fulfill their needs, many are turning to composable solutions that allow them to pick and choose the functions they need to create a successful identity spine that works for their unique use case. This composable setup will help brands preserve transparency and interoperability to eliminate roadblocks and preserve omnichannel campaigns.
