The rise of Universal IDs in a Cookieless Future

While it’s clear that third-party tracking & cookies will soon come to an end, it’s not 100% clear what will happen to measurement & targeting capabilities when this does finally happen. However, everyone is in the same boat, and no one has yet found a solution that fully satisfies all parties.

What’s caused these changes in third-party cookies is growing pressure within the supply chain about transparency & also users’ privacy. Some companies like Google have proposed replacing third-party cookies with their Privacy Sandbox where all behavioural data would be stored in a browser or web page and then this information could be called through the interfaces at a later time for advertising purposes.

However, some other independent tech providers have also been working on solutions for the post-cookie world – one of these providers being ID5 with their Universal ID (U-ID)solution. Before we get to that, a Universal ID identifies a user in the digital marketing ecosystem and then allows any information associated with that user to be passed on to approved websites and partners. They are persistent IDs stored in the html5 storage space of a user’s browser which is limited to first-party use only – this means they will only work when a user stays on the same site. One example of a User ID can be something like a login they have from their email address which they use to access other sites such as social media, online shopping accounts, etc. If a user’s login information is known, then the user ID is retrieved from the ID service provider – and if there is not yet an ID for that person, one is created for them.

A U-ID provides advertisers, publishers, and tech providers with an alternative way to improve user identification and reduce the need for third-party cookies. Similar to 3rd party cookies, U-IDs are used to enable targeting and measurement in advertising and help improve the user experience on the site. The ID allows publishers to enhance the value of their inventory and enable advertisers to run more targeted campaigns.

This is where ID5 comes into it – which uses its tech to help improve online advertising for Advertisers, consumers, and media owners. ID5 provides the digital ecosystem with a scalable, transparent & privacy-compliant identity system different from the ones being proposed by and owned by the likes of Google. The ID5 solution is used to improve user recognition & match rates and also provide a stable, and encrypted user ID to replace third-party cookies and MAIDs (Mobile Ad IDs). This enables publishers to monetize their audiences better and allows advertisers to run more effective & measurable campaigns. More information on ID5 and its U-ID framework can be found here.

While Universal IDs are not a new thing, they have become a lot more prevalent in the industry now that we are approaching a future without third-party cookies. If you want to know more about Universal IDs and how they can help your business, our team of ADMATICians is willing and eager to help.