Shaping the Future of Identity

A guide for buyers and sellers navigating a new path to programmatic advertising 2 | Shaping the Future of Identity Introduction | 3

Introduction

For a long time, third‑party cookies and device identifiers have been the foundation of people‑based marketing, enabling granular targeting and precise measurement on cross‑site, cross‑channel advertising campaigns.

While cross‑site identifiers While navigating the are effective for marketers transition is challenging, looking to justify ad spend, the deprecation of third‑party they are often less appealing cookies has encouraged to consumers who are collaboration among concerned about exposure advertisers, publishers and of their personal data on the adtech providers around internet. With this in mind, the world to uncover new regulatory and browser solutions that see the policy changes, including the digital advertising industry deprecation of third‑party return to a consumer‑first cookies and device identifiers, approach and set the entire are happening for the ecosystem up for success. benefit of the consumer, to give them more control With this guide, we aim to over how and with whom explain the challenges the their information is shared. industry is facing, understand the approaches buyers As a result, marketers need and sellers can take, and to adjust buying strategies to outline considerations for ensure their programmatic all market participants as advertising investments they prepare for a future remain effective and efficient, without third‑party cookies reaching customers across and device identifiers. screens in a non‑intrusive and privacy‑safe way. On the other hand, publishers need alternative monetization strategies to continue to maximize the value of their inventory. 4 | Shaping the Future of Identity What is Happening and Why Should You Care? | 5

What is Happening and Why Should You Care?

Historically third-party cookies and device identifiers have been the backbone of people-based marketing, playing a Digital identifiers include: critical role in the success of buyers and sellers. In the adtech industry, digital identifiers are used to recognize individual Third-party cookie IDs users or groups of people within a household. 1 (cross-domain)

In recent years the Simultaneously, web browsers First-party cookie IDs industry has recognized are making changes to their 2 (domain-specific) growing concerns over cross-site tracking policies, online consumer privacy, rolling out technological Mobile ad IDs (IDFAs & implementing new regulations changes and restrictions 3 Google advertising IDs) and policies that, while on third-party cookies. complex, provide additional Google Chrome, which and necessary layers of represents about 63% of the protection for consumers. online advertising market, General Data Protection is expected to deprecate Regulation (GDPR) in Europe third-party cookies by 2022, has drawn consumer’s effectively removing the attention to the value of primary currency for user their data and their right identification in web-based 80% to protect how it is being advertising transactions of transactions collected and used. and challenging the value use third-party of data marketplaces. cookies today1 Similar regulations like the California Consumer Privacy Mobile software updates Act (CCPA) in the US and are also taking steps to the General Data Protection protect consumers. Apple’s Law (LGPD) in Brazil signify iOS 14.5 update would restrict a global shift in this direction. access to IDFAs, limiting user These regulations can identification capabilities on require companies to ask mobile apps. While positive 64% for consent to sell or process for consumers, such updates of consumers personal data, and consumers make addressability and are concerned are broadly opting out or targeting more complex, by how companies electing not to be tracked. permanently impacting the use their private dynamics of digital advertising. information online2

1 Xandr’s platform 2 Global Web Index 6 | Shaping the Future of Identity What is Happening and Why Should You Care? | 7

The impact on the industry The deprecation of third-party cookies has major implications for the entire advertising ecosystem.

ADVERTISERS TECHNOLOGY PROVIDERS CONSUMERS

Advertisers rely heavily on identifiers, both › CPA Optimization — DSPs Identifiers fuel the value exchange that enables online and offline, to reach their audiences, Fewer conversions attributed leads to higher DSPs, or demand-side platforms, will find publishers to generate free, premium content manage creative messaging (what ad and CPAs and impacts ability to optimize to the it more difficult to deliver 1:1 addressable for consumers, in exchange for exposure to how often), and to measure the effectiveness metric. ads at scale across publishers, and relevant advertising. A disruption in that value of their advertising campaigns. need a consistent, accurate solution for exchange will cause an increase in paywalls, › Behavioural Targeting — measurement. They will need to double sign-in requests and subscriptions for content. The impact for advertisers: Limited ability to segment users based on down on optimization algorithms that drive In addition, consumers may experience their web browsing history. outcomes, or risk providing less efficient less relevant ads, leading to increased › Retargeting — Without a unique ID, buying strategies for advertisers. frustrations with the advertising model. marketers cannot re-identify a user who abandoned a site without purchasing. PUBLISHERS SSPs/Exchanges It will become more challenging for SSPs, › Frequency Capping — Publishers rely on both first and third-party or supply-side platforms, and exchanges to Frequency management may rely on identifiers to generate 1:1 addressable demand generate addressable demand as matching publisher first-party cookies, with limited so they can help advertisers deliver relevant users across publisher inventory to advertiser ability to restrict ad exposure to a user messaging at a premium price. They are audiences will become increasingly limited. across different websites. at risk of seeing a decline in ad revenue This could lead to decreased publisher as addressable reach becomes limited. monetization opportunities and reduced › Conversion Attribution — revenue per thousand impressions (RPMs). Diminished ability to precisely tie conversion events to prior ad exposure. Fewer conversions are precisely attributable to the same investment. 8 | Shaping the Future of Identity What is Happening and Why Should You Care? | 9

The importance of an open and The demise of third-party A major implication would free internet in a post-cookie world cookies means the value come in the form of quality What is a The open internet represents the vast exchange for the open internet journalism, which is at risk walled garden? ecosystem of websites, apps, games, and is at risk as walled gardens, given such changes could A walled garden is a video streaming platforms that supply which have their own log-in overtake users’ ability to closed ecosystem in a majority of the content consumed user solutions in place, have access premium content which all operations for free outside of walled gardens. the potential to control an online for free. To support scale are controlled by the even greater share of ad for advertisers, optimized ecosystem operator As we know, the open internet is spend. If advertisers shift demand for publishers, and keeping all data and powered by advertising and supported budgets entirely into walled increased content choices for technology to itself. by the value exchange between: gardens, publishers operating consumers, the industry as a In adtech, a walled on the open internet will begin whole will the need to prioritize garden provides its › Consumers — users are seeing to feel increased pressure as the sustainability of the customers with the targeted ads in exchange for they look to maintain current open internet. audience, technology, free, premium content. revenue streams, either and inventory but in the form of advertising doesn’t allow them to › Content owners — publishers spend or user subscriptions. export any data. That receive revenue to create means that no data premium content. Consumers Brands goes outside of that platform and can’t be › Brands — brands reach THE used in the exchange desired audiences. VALUE between third-parties. EXCHANGE

Content Owners 10 | Shaping the Future of Identity Understanding Alternative Approaches to Identity | 11

Understanding Alternative Approaches to Identity

Today, precise user identification provides the ability to recognize a single consumer and target PUBLISHER PUBLISHER Publisher IDs are valuable for and track their browsing journey. In the future, PROVIDED IDs PROVIDED IDs the purposes of frequency mechanisms for reaching that consumer and capping across a publisher’s measuring success will have to evolve. A successful INDUSTRY Publisher IDs are identifiers properties, and facilitating strategy will require a mix of approaches including IDs assigned to users who are publisher-provided audiences, those that facilitate 1:1 addressability, modelled known to that publisher. often sold through deals. solutions, browser and app‑backed frameworks, CLEAN ROOM They could be first-party For buyers, they are able and private marketplaces (PMPs). In this section, TECHNOLOGIES cookies and domain-specific, to reach audiences on we elaborate on different emerging solutions. or consistent across sites those publishers’ properties, CONTEXTUAL based on authenticated data. relying on the strength of TARGETING the publishers’ knowledge Publishers already use of and relationships with MODELLED first-party cookies for users on their sites. SOLUTIONS content personalization, but building upon their Direct integrations with SSPs CURATED direct-to-consumer that support publisher ID MARKETPLACES relationship, they have an solutions allow sellers to opportunity to utilize their achieve addressability BROWSER/APP first-party data to improve while maintaining certain FRAMEWORKS the ad experience for mechanisms such as customers on their sites, frequency capping without therefore improving ad third-party cookies. However, monetization opportunities. user identification is limited to the sellers’ domains and therefore does not facilitate scaled functionality like matching against buyer audiences, frequency capping across sellers and cross-site conversion tracking. 12 | Shaping the Future of Identity Understanding Alternative Approaches to Identity | 13

INDUSTRY a given consumer and who Probabilistic CLEAN ROOM IDs have been provided that In addition to a publisher TECHNOLOGIES consumer’s email address, or brand’s first-party Publishers who want to as well as permission to deterministic data, some Clean room technologies expand their access to utilize it for advertising, providers use behavioral enable the matching of demand could develop are able to resolve that and contextual signals first-party datasets directly publisher coalitions and consumer-consented data available in the bidstream between publishers and consortiums or adopt to an operational identifier. to build user-identification advertisers, without exposing industry identity solutions, Deterministic industry and graphing solutions. customer data to either party. which provide anonymized IDs are cross-device as Probabilistic, or modelled These technologies enable IDs so sellers and buyers they are attached to the industry IDs, can facilitate retargeting and prospecting can consistently identify a user rather than a device. greater reach and cross-site strategies at scale, but can user. Some industry IDs are However, due to the opt-in connectivity between be time consuming to set based solely on deterministic, nature of many of these publishers and advertisers up. Activation strategies consumer-provided solutions, their availability than deterministic are often deal-based first-party data. Others and reach can be limited. solutions. However, they and based on specific enhance first-party input can be less accurate than buyer-seller relationships. with behavioral and deterministic solutions and contextual signals and/ Examples of industry ID are often device-specific. Advertisers that have or use models to build user solutions anchored on first-party data and use profiles and identity graphs. deterministic data are: data clean rooms can Examples of industry IDs activate their first-party Deterministic › Unified ID 2.0. that use modelling include: data on a publisher’s site IDs anchored on › LiveRamp IdentityLink in a privacy-safe way. consumer-provided › netID › Panorama ID First-party data is key to information are inherently › Zeotap ID+ › ID5 pairing identities between more durable and › FabrickID buyers and sellers; buyers will privacy-preserving. leverage their first-party data An authentication event identifier for scaled targeting (usually an email address and attribution while sellers being entered into a form will lean into their data assets on a website) where the to maintain buyer demand. consumer provides their data Infosum is one company in exchange for content or leading the way in this space. other value, is typically the basis for the creation of the ID. Publishers and advertisers with direct interactions with 14 | Shaping the Future of Identity Understanding Alternative Approaches to Identity | 15

CONTEXTUAL At the same time, technology An example use case TARGETING like artificial intelligence and machine learning has Contextual and first-party audience hybrid audience and the right emotion. For the user, Contextual targeting, a form made contextual much more Leveraging Natural Language contextual ads feel less personalized and of advertising that serves ads advanced and automated. Processing (NLP), a few adtech providers targeted as the ads they see are relevant to based on the surrounding The targeting mechanism can analyze and score every single URL in the content they are viewing currently rather content that the user is now goes beyond keywords their publisher network based on the affinity than what they have viewed in the past. consuming at the time of and can actually understand between the contextual categorization the ad delivery, has existed the brand sentiment or image of the page and the target audience. For However, many of the advanced capabilities for over a decade but has on a page as well as its full example, a retail-specialized data company achieved through advertising today, such as seen a resurgence due to context. Another advantage can identify that web pages about “wine” frequency capping, cross-device targeting, tightening data and privacy in the pending cookieless and “fine-dining" have high affinity with conversion tracking and retargeting, are regulations. Contextual world, is that most contextual a high-end handbag’s purchase intender. not possible through contextual alone. advertising can include but solutions do not require So, the marketer can target those page is not limited to text, image, consent because they URLs in order to reach their prospects. Numerous players have developed in audio, location and semantics do not rely on trackers this market including Illuma, Beemray, of content, rather than or personal data. If executed correctly, contextual intelligence Orion, SirData, and Qwarry. a user’s behavioral data. can be as effective and scalable as Common signals used behavioral targeting in capturing the right Contextual technology to create contextual has evolved considerably. audience segments: Today, many contextual solutions are a blend Keyword of approaches wherein contextual signals, such Brand safety as content category, keywords and sentiments are Category sentiment supplemented with publishers’ authenticated user data to Geography extrapolate insights and infer interest or purchase intent. Fraud/sensitive topic prevention

Time and weather

Viewability 16 | Shaping the Future of Identity Understanding Alternative Approaches to Identity | 17

MODELLED CURATED As an environment which has Top strategies cited by respondents for the upcoming loss SOLUTIONS MARKETPLACES never supported cookies, it of third-party cookies and device identifiers can be difficult for buyers Modelled approaches Curated marketplaces can to reach their desired powered by machine learning be thought of as a bespoke audience across formats. Contextual and artificial intelligence marketplace which exists targeting 74% will play an increasingly within a larger marketplace, Suffice to say, media buyers critical role in targeting and allowing users to easily will be dependent on multiple First-party measurement use cases. package up inventory approaches to achieve scale, data 60% 1:1 addressability and precise from the ad exchange with regional variations cross-site identification is into multi-seller deals. needing to be considered Publisher predicted to be significantly These have a role to play as well. Implementing first-party identifiers 45% diminished in the long term, in the future of identity. these approaches across so additional scale beyond multiple point solutions can Industry ID-based solutions are Audiences based on semantic quickly become onerous identifiers 38% necessary to complement contextual analysis and for traders and curated addressable approaches. first-party data will be two marketplaces can help. Browser-provided important alternatives to frameworks 19% Use cases for data-science cookie-based audiences. Creating a package which driven solutions include However, they are either blends sophisticated Development of bespoke audience expansion, technically or operationally contextual targets, first-party identity solution* 17% frequency management, complex to leverage. audiences from premium measurement and fraud Technically, not all platforms sellers, and industry ID-based prevention. For many use will seamlessly support data will allow traders to * either in-house or with vendors Source IAB Europe/Xandr Research 2021 cases being addressed, semantic data providers reach relevant audiences at specific users remain skilled at creating highly scale in an efficient manner. anonymous, and these sophisticated and granular methods rely on logical, context-driven targeting If that still sounds onerous, algorithmic approaches concepts. Operationally, there it’s worth noting that to draw conclusions is a lot of value in first-party media buyers do not need BROWSER/APP to obtain information Apple’s App Tracking which form the basis of audiences, but they have to to operate the curated FRAMEWORKS from the browser, and Transparency (ATT) framework decisions. For this reason, be normalized, sought out marketplace themselves to use this information to and SKAdNetwork for algorithmic approaches and negotiated one-by-one, benefit from scaled identity Browser and mobile-app facilitate advertising conversion measurement are often considered then aggregated to achieve solutions. They can equally provided frameworks can help use cases including: are further examples privacy-preserving as they do usable scale for traders. benefit from third-party address advertising use cases of platform-provided not rely tracking users. Many curated marketplaces without cross-site identifiers. › Fraud detection mechanisms that do not cohort-based approaches Importantly, this technical which offer valuable identity › Conversion measurement expose user data to third being experimented and operational complexity solutions out-of-the-box. Privacy Sandbox, which › Interest-based targeting parties, but rely on the owned with today are driven by is compounded when media is an open-source project › Re-marketing data assets available within algorithmic approaches, buyers want to include led by Google Chrome, the browser or app ecosystem. and the possibilities for CTV in their media mix. seeks to replace the Many Privacy Sandbox further use cases driven by current uses of third-party proposals are still in their machine-learning are vast. cookies with browser infancy and have yet to Application Programming be established as feasible, Interfaces (APIs), which market-ready solutions enable third-parties ready for the global stage. 18 | Shaping the Future of Identity Understanding Alternative Approaches to Identity | 19

Solutions for the future of advertising

Precision for Frequency ID Scope Identifying Individuals Reach Measurement Capping

Current Identifiers*

THIRD-PARTY 1:1 Cross-site Browser COOKIES

MOBILE 1:1 Cross-site Device AD IDs

Post Third-Party Cookie Solutions

PUBLISHER Publisher Publisher- Device or Individual PROVIDED IDs Property facilitated

INDUSTRY Individual (deterministic) 1:1 Cross-site IDs Device (probabilstic)

CLEAN ROOM 1:1 Individual TECHNOLOGIES

CONTEXTUAL Anonymous Category-based TARGETING

MODELLED Anonymous N/A Modelled Modelled SOLUTIONS

CURATED Blended N/A Variable Variable MARKETPLACES

Evolving Solutions

BROWSER/APP Solution Cohort/Group Browser Variable Variable FRAMEWORKS based

* These solutions will deprecate in the future. 20 | Shaping the Future of Identity Achieving Relevance in a Post Cookie World | 21

Achieving Relevance in a Post Cookie World

Advertisers

Buyers need to develop privacy-safe strategies that are not reliant on third‑party cookies and account for the new standards of identity resolution in the programmatic ecosystem.

While the opportunity for At the moment, buyers is to embrace new advertisers heavily rely techniques and redefine on both online and offline success measures, it’s identifiers to reach their also important to note audience, to manage that with those changes, creative messaging data availability and precision (what advert and how could decline. Buyers need often), and to measure to embrace new solutions the effectiveness of their and update their strategies advertising campaigns; accordingly to well-prepare they need to go beyond for the transition. this to succeed in a post-cookie world.

Data owners should aim to develop a first-party data strategy

Establish strategic relationships with publishers

Understand your KPIs and build a framework

Support the open internet 22 | Shaping the Future of Identity Achieving Relevance in a Post Cookie World | 23

Data owners should aim to to advertisers. While a great opportunity Establish strategic relationships with publishers Understand your KPIs and build a framework develop a first-party data strategy for brands, the marketing and advertising Relationships will be more critical as buyers In considering the set of approaches that In today’s connected world, brands have industry must ensure privacy and providing look to work directly with publishers. With make the most sense for a business, it is more data available than ever before. value to consumers remains a priority. this in mind, publishers will have to offer important to understand critical goals, From purchase data to email engagement their inventory through private or curated KPIs and what success really means. and device information, consumers are Here’s three steps that advertisers should marketplaces that respond specifically There are no exact parameters as success constantly making their data available consider when it comes to data. to advertisers’ needs in order to meet this is bespoke to individual business. demand. Therefore, it is crucial that brands evaluate collaboration opportunities and Once goals and KPIs are established, establish relationships with premium publishers, advertisers can then build both a framework 1 utilizing technologies like data clean rooms for and a series of tests. To execute, a proper audience matching in a privacy-safe way. evaluation of adtech solutions, the capabilities they boast and the solutions they support will LAY THE DATA FOUNDATIONS Many publishers have already started to define be necessary. Once the evaluation is complete, It may seem obvious but ensuring buy-in from audiences based on their own first-party a framework for testing can be put in place. company leadership is vital if you are looking relationships, and also classify their inventory The result will be a better understanding of to transform your approach to data and ensure using consistent categories. Lack of consistent the technology needed to achieve such goals, you can navigate the cookieless world ahead. taxonomies across publishers could result in and ultimately a more successful approach. Data audits are expensive and, if done improperly even more fragmentation, which is a challenge or incorrectly, can prove costly for a business. that is being addressed by the industry. However, direct publisher relationships, and direct access to premium publisher inventory facilitated through SSPs can provide continued relevant 2 access to users known to both parties, and also help find relevant target audiences enabled by a publisher’s knowledge of their users. ORGANIZE YOUR DATA Establishing a distinction between consented and non-consented data is essential, both in terms of understanding what data can and can’t be used and meeting regulatory guidelines. To put their data to use, advertisers need to ensure data is clean, organized, concentrated and compliant. This step isn’t glamorous, but it is crucial.

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BUILD ON THE FOUNDATIONS Education around the value exchange is going to be key in order to grow datasets. For some time, consumers have been concerned with how their data is handled. Educating them about how their data will be used, including the large role it plays in delivering a more relevant online advertising experience, is important. 24 | Shaping the Future of Identity Achieving Relevance in a Post Cookie World | 25

Support the open internet There is of course a place for walled gardens As noted previously, the deprecation of where it makes sense for media strategies, third-party cookies will put pressure on however, it is important that advertisers avoid publishers as they look to remain financially complete reliance on the walled gardens as it stable. Critical to this will be buyers’ could impact control, reach and differentiation. ongoing support of the open internet.

Key reasons why buyers should allocate budgets outside of the walled “As the deadline for the loss of third-party gardens include the following: cookies looms, advertisers have a lot to consider. Now is the time to be testing and › Customers spend a lot of time in the developing a strategy that incorporates open internet. Attention is increasingly a mix of possible solutions. These could fragmenting as consumers access content include developing a first-party data across screens, both via proprietary strategy, building strong relationships with platforms and the open internet. All the publishers, understanding and evolving while, viewing content is available on KPIs, supporting the open internet and an ever-expanding variety of platforms. reviewing the media mix. A new approach Still, 61% of advertising spend consistently will need to include all of the above in order goes into walled gardens. If advertisers for advertisers to engage with consumers in are investing most of their budget in these a post third-party cookie world.” platforms, they risk missing opportunities to connect with more scaled audiences. EWA MACIUKIEWICZ VP, Product Management, Xandr › The open internet is an opportunity for differentiation. If advertisers are investing in the same platforms with the same data, the chance to differentiate is limited. By using the open internet, advertisers are able to target a variety of users and offer more opportunity for differentiation. 26 | Shaping the Future of Identity Achieving Relevance in a Post Cookie World | 27

Publishers

As the industry moves away from third-party cookies, Understand the Establish your data strategy It is important to take a new doors open for publishers to reshape the future challenges faced by Publishers need to define thoughtful approach when of digital advertising. users and advertisers or expand their first-party implementing and measuring One of the first areas to data strategy. This will largely the value of new ID solutions. There is an unprecedented consider is communicating impact a media owner’s It’s equally as important to fully opportunity for publishers to Understand the challenges meaningful value to competitive advantage in understand the mechanics elevate their role in the digital faced by users and advertisers consumers. User data offers the market. First-party data of applied ID solutions to advertising ecosystem by many advantages, including a strategies can be enabled by ensure they conform to local clarifying the value exchange more customized experience, increasing authenticated users regulations and align with with their audience and Establish your but consumers need to to develop a viable first-party any unique or independent advertisers alike. Consumers data strategy feel comfortable with the identifier, leaning into privacy initiatives. need to understand how value exchange, including contextual and behavioral data the content they rely on is transparency into how and collection, and exploring data Collaboration will only supported and advertisers Think beyond why their data is being used. partnerships with advertisers. enhance the opportunity need to understand identifiers Local market dynamics to provide scaled solutions why a media brand, its must also be accounted However, it is important to to advertisers on the open audience and the context is for as some regions have acknowledge that not every internet. Where global ID valuable — this is something stricter approaches to publisher will have the scale solutions aren’t the right publishers can support. privacy that may influence to fully take advantage of fit, partnering with local the solutions you can offer. these opportunities, but where publishers or businesses to possible, first-party data will offer a value-add solution for Moreover, in a privacy-first allow publishers to provide consumers may be a good world where explicit consent advertisers with unique solution. Industry alliances is mandatory, the relationship audiences and insights calling for multiple partners between advertisers and not necessarily available to share IDs or logged-in publishers is more important through walled gardens. audience data are expected. than ever; publishers must NetID, designed to provide continue to build deep Evaluating Industry ID solutions scale to the open internet relationships with strategic will be necessary to reach in Germany, is a perfect buyers in their respective cross-site and cross-channel example. It is also important markets. Understanding demand at scale. Industry ID to consider contextual or an advertiser’s marketing solutions have a place in any non-ID based collaborations, funnel and objectives as publisher’s data strategy but such as the Publisher well as the data they’ve offer a particular advantage Platform established by historically transacted for smaller publishers that JP Politikens Hus, TV2 and with will help design the may lack breadth of first-party Berlingske Media in 2019. This right solution for all parties data. There are several ID is the time to engage with moving forward. Critical to solutions already available the broader industry and the process is consulting and it’s anticipated that any identify potential partnerships development, operations, given market may rely on to ensure a beneficial legal teams, and technology more than one Industry ID. relationship down the line. partners when considering solutions to address buyer and market needs. 28 | Shaping the Future of Identity Achieving Relevance in a Post Cookie World | 29

Think beyond identifiers Contextual offers a privacy-safe alternative “We’re at a pivot-point in the evolution for advertisers to reach relevant users at of digital advertising and publishers are scale across publishers and exchanges central to writing the next chapter. Consider without relying on identifiers. It is important the value you bring to advertisers and to acknowledge that it does not resolve every consumers when defining your data strategy, problem (such as frequency capping and incorporate contextual as a mainstay attribution) but should be considered as a in your plans, and collaborate to offer key component of a broader data strategy. scaled solutions within your market. By Publishers of all sizes can benefit from approaching this next phase with an open leveraging their content to drive audience mind, publishers are in a strong position to matches for buyers in both direct sold and come out on top.” programmatic channels. For best results, work with a platform that offers contextual ADRIAN MASON capabilities or work in collaboration with Director of Product Management, Xandr regional partners to define a taxonomy that resonates in individual markets.

Finally, with data consent notifications becoming more prevalent across mobile app and browsers, and regulatory requirements changing monthly, an increasing number of users will likely decline to provide consent altogether. This inventory cannot be discarded and publishers must establish a compliant means to monetize consentless traffic.

We are in a state of constant change — it’s important to review strategies regularly and seek consultation from key technology partners. 30 | Shaping the Future of Identity How are Xandr Clients Innovating in that Space? | 31

How are Xandr Clients Innovating in that Space?

The Publisher Platform Programmatic Search Intelligence Advertisers have been demanding transparency “As we edge closer to the deprecation Captify’s pioneering offering ‘Programmatic “As the loss of third-party cookies across the supply chain for many years, but of third-party cookies, it paves the way Search Intelligence’ (PSI) uniquely fuses approaches, advertisers’ top concern is with a large number of intermediaries, it has for new collaborations that points to multi-channel media with Search Intelligence, how this will impact their ad performance, not always been easy to achieve this. Danish innovative ways the ecosystem can providing a solution for the lack of consumer and ultimately, their bottom line. As they publisher coalition ‘The Publisher Platform’ operate — giving back more control intent and recent of data available in the begin to test and adopt new buying established by JP Politikens Hus, TV 2 and to both advertisers and publishers.” programmatic ecosystem. Captify’s solutions strategies that balance performance Berlingske Media was created to try to tackle this ensure advertisers have multiple ways to and privacy, it will become clear that problem, allowing publishers control over their DORTHE BJERREGAARD-KNUDSEN harness its Search Intelligence, including standard contextual strategies won’t inventory and the ability to offer it to buyers in Executive VP and COO, JP Politikens Hus Search-powered Contextual which is available cut it. However innovative solutions are a single, transparent environment and at scale. via Xandr’s data proprietary solutions emerging for the advertising market and provides a compelling alternative to that empower advertisers to reach high With data as a very important component cookie-based segments and standard performing, intent-powered audiences within the coalition’s proposition, the contextual offerings in the market. at scale. In fact Captify’s Search‑powered platform is built for the future, based on Contextual available via Xandr’s platform contextual data from all participating media is a compelling alternative to cookie‑based it is a viable solution for impending identity segments and standard contextual changes as buyers can access special offerings in the market.” content context that matches their brand or campaign in a privacy-first environment. MATTHEW PAPA SVP of Partnerships, Captify 32 | Shaping the Future of Identity Conclusion and Key Takeaways | 33

Conclusion and Key Takeaways

The first step in navigating the changing landscape is to understand it. Leverage a vast network We are at the beginning of a new advertising The objective is not to establish a replacement to develop a strategy that will meet business needs. Talk to partners — platform, identity, world: a balance between respecting for third-party cookies, but rather redefine data providers, publishers and advertisers — about their plans and how they are preparing consumer privacy preferences and identity solutions in a way that demonstrates for 2022 and beyond. supporting the open internet. The move the value exchange and puts the consumer away from third-party cookies allows the at the forefront. As we have seen, there is It is important that marketers evaluate their industry to better embrace transparency no silver bullet solution. Instead, we can look options. There are many considerations, and and encourage more industry collaboration forward to a combination of alternatives many more on the horizon, that span the 1 with players across the ecosystem. that the industry is building collaboratively. spectrum of addressability from 1:1 addressable, where audiences can be matched across The adtech ecosystem is embracing advertiser and publisher, to non-addressable, collaboration to promote identity solutions where no identity signals are available for that put the consumer first. First-party matching audiences. data is inherently better than third-party data as it relies on direct relationships Publishers must rethink their monetization with consumers and there is a great strategies, leveraging direct consumer opportunity for innovation during this relationships that enable premium content state of rebuild. delivery that users are accustomed to. Buyers and sellers need to be ready to do some experimentation during this crucial transitional period. 2

It is important to note that while all this change poses an industry-wide challenge, there are The deprecation of the third-party a number of reasons to remain optimistic. cookie is imminent, but it’s not tomorrow. There is still time to prepare.

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The programmatic industry can still count on the amazing people that are working together to build incredible technology. 34 | Shaping the Future of Identity Conclusion and Key Takeaways | 35

Xandr’s approach to identity Xandr has a multi-faceted This includes authenticiated approach to identity solutions, user data, and industry to facilitate high-value identity solutions, alongside transactions for buyers modelled and contextual and sellers following the solutions, support for browser deprecation of third-party and app provided frameworks, cookies and device IDs. technology that enables ad We are laying the groundwork serving without personal data. for agnostic interoperability for identifiers, so our clients can work flexibly For more information please with first-party data. contact your respective Xandr account manager. About Xandr A business unit within AT&T, Xandr powers a global marketplace for premium advertising. Our data-enabled technology platform, encompassing Xandr Invest and Xandr Monetize, optimizes return on investment for both buyers and sellers. For more than 143 years, AT&T has used data and technology to inform and improve the consumer experience.

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