MARKETING
The power and limitations of universal IDs
Something must replace the cookie. It’s due to disappear by the middle of next year.
Marketers are checking out zero-party data, first-party data and cohort analysis. But don’t forget universal IDs.
At its most basic, the UID should recognize the user, compile their information, and share that data with approved partners. How that is done varies, as there is no standardized method or practice for doing this.
“Universal IDs come in two main forms: authenticated and inferred. Authenticated IDs are built by using unique pieces of user data, such as an email address. Inferred IDs are created by device-level data, such as an IP address, user agent string, and device model,” explained Mike Sweeney, head of marketing at adtech and martech software development company Clearcode. “Some universal IDs would use both user-level and device-level data to enrich the IDs and help improve match rates.”
The good news is that the UID is one pathway to a future without cookies. The bad news is that the pathway is not entirely clear, and the future is a bit hazy.
If it is not a cookie, is it a cracker?
Cookies and UIDs both have their limits.
“Every company that sets a cookie has their own ID, and then has to basically do a live exchange of information or share a common cookie space,” explained Rob Armstrong, SVP for product at data transformation company Eyeota. “That’s partly why we’re in this problem because a website could have a carpet bomb of 50 different companies creating cookies.”
“While there is no one-to-one replacement for third-party cookies, universal IDs are probably the closest thing the programmatic advertising industry has to them,” Sweeney said. “However, they lack one key advantage — scale.”
A UID requires a consumer action, like providing an email in exchange for more information, while a cookie is slipped into the user’s browser simply upon visiting a web site, explained Tom Craig, CTO at consumer intelligence platform Resonate. While a cookie can track a user across multiple domains, the UID is limited to the domain the user visits. “This limitation is one of the primary reasons that marketers need to be thinking more broadly than UIDs as they plan their go-forward marketing strategies,” Craig said.
How a user identity is established requires an authentication. “Email is the easiest way to do it in the U.S., where log-ins are usually email address,” observed Chris Bell, VP for Product Management at Oracle. “In Asia, it’s the mobile phone number.”
“You have to shift. Try to meet the user where they are with the piece of personal information they are comfortable giving up,” Bell added.
One size does not fit all
UIDs are not standardized — yet. LiveRamp, The Trade Desk and ID5 are a few among many vendors offering solutions in the UID space.
The Trade Desk’s approach with Unified ID is to generate the UID using the email address provided by the customer, usually in exchange for site access or additional material, Sweeney explained.
“Companies like LiveRamp, Tapad, Signal, Neustar, Zeotap, Epsilon, Flashtalking and others, would also use email addresses to generate an ID,” Sweeney continued. “But they would also use other pieces of deterministic and probabilistic data collected from different sources, e.g. cookie IDs from web browsers, mobile IDs from smartphones, and IP addresses.”
“Proprietary solutions will never get the scale to be viable solely on their own,” Craig said. “Each site needs to implement a solution for it to be addressable, and those sites will not likely implement proprietary solutions.”
“Standardization brings adoption and it brings capital investment. It brings stability, and it’s lacking,” Armstrong said. “This is why we see certain companies having a much more prominent universal ID posture because of their presence in the industry and being a known entity that a lot of companies are working with.”
Read next: Sharing The Trade Desk’s Unified ID will not end adtech disruption
Many players in a game with few rules
The UID market is young, with about 40 or so vendors all providing solutions, Bell noted. Starting such a company is easy. What’s hard is “getting one to be meaningfully different.”
To succeed, they must “have a strong touchpoint” with publishers, so that they are using that firm’s UID scheme, Bell said. Then you must encourage adoption by adtech providers. It is a game about creating mindshare.
“The lack of standardization around universal IDs isn’t too much of an issue at the moment,” Sweeney said. “However, the sheer number of universal IDs causes issues around interoperability.”
For the digital marketer, it is too soon to place a winning bet on one UID. Some UID solutions revolve around deterministic identification, others rely on probabilistic determination. “It’s not clear at this point what the answer will be,” Bell said. If all these competing UID firms knew the answer, “they’d all be skating towards the puck.” He said. “My hypothesis is [there will be] a rapid winnowing down to a smaller number [of solutions].”
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Don’t throw your hands up in despair
UID is young. Best practices are still being discovered. What can marketers do?
“Focus should be more about building relationships with customers and collecting consented personal data,” Bell said. And cover your bets in the vendor landscape. “Putting all your chips on a single UID scheme is risky.” Things will shake out in the next 12 to 36 months.
“It’s definitely a time of testing.” Armstrong said. “Test the parachute before you jump out of the plane.” Try to understand performance in regular browsers with cookies, tested against browsers without cookies, but using UID.
“Also be mindful of the methodology going into it. If it’s probabilistic, then it’s going to be more like a cookie. If it’s deterministic, it’ll look a lot different. And in that case, you could start to think about it a little bit more strategically versus just, does this work?” Armstrong added.
“I think a great first step would be to speak to your existing adtech partners and find out whether they’ve integrated with any of the universal ID solutions,” Sweeney said.
Craig offered this checklist:
- What interactions are had with consumers, both customers and prospects?
- How can those interactions be identified after cookie deprecation?
- Is there an opportunity to capture or request email addresses from those interactions?
- Which identity provider, if any, best suites the business’ needs?
- Does my company have a strategy to increase coverage of identities and collect emails?
“Companies with email and UID collection will be able to work with programmatic platforms to target and retarget those customers,” Craig said. “They will have the ability to know more and take personalized actions with their customers. Without UID collection, marketing will become limited to contextual or cohort-based targets and all personalization will be a thing of the past.”
MARKETING
Trends in Content Localization – Moz
Multinational fast food chains are one of the best-known examples of recognizing that product menus may sometimes have to change significantly to serve distinct audiences. The above video is just a short run-through of the same business selling smokehouse burgers, kofta, paneer, and rice bowls in an effort to appeal to people in a variety of places. I can’t personally judge the validity of these representations, but what I can see is that, in such cases, you don’t merely localize your content but the products on which your content is founded.
Sometimes, even the branding of businesses is different around the world; what we call Burger King in America is Hungry Jack’s in Australia, Lays potato chips here are Sabritas in Mexico, and DiGiorno frozen pizza is familiar in the US, but Canada knows it as Delissio.
Tales of product tailoring failures often become famous, likely because some of them may seem humorous from a distance, but cultural sensitivity should always be taken seriously. If a brand you are marketing is on its way to becoming a large global seller, the best insurance against reputation damage and revenue loss as a result of cultural insensitivity is to employ regional and cultural experts whose first-hand and lived experiences can steward the organization in acting with awareness and respect.
MARKETING
How AI Is Redefining Startup GTM Strategy
MARKETING
More promotions and more layoffs
For martech professionals salaries are good and promotions are coming faster, unfortunately, layoffs are coming faster, too. That’s according to the just-released 2024 Martech Salary and Career Survey. Another very unfortunate finding: The median salary of women below the C-suite level is 35% less than what men earn.
The last year saw many different economic trends, some at odds with each other. Although unemployment remained very low overall and the economy grew, some businesses — especially those in technology and media — cut both jobs and spending. Reasons cited for the cuts include during the early years of the pandemic, higher interest rates and corporate greed.
Dig deeper: How to overcome marketing budget cuts and hiring freezes
Be that as it may, for the employed it remains a good time to be a martech professional. Salaries remain lucrative compared to many other professions, with an overall median salary of $128,643.
Here are the median salaries by role:
- Senior management $199,653
- Director $157,776
- Manager $99,510
- Staff $89,126
Senior managers make more than twice what staff make. Directors and up had a $163,395 median salary compared to manager/staff roles, where the median was $94,818.
One-third of those surveyed said they were promoted in the last 12 months, a finding that was nearly equal among director+ (32%) and managers and staff (30%).
Extend the time frame to two years, and nearly three-quarters of director+ respondents say they received a promotion, while the same can be said for two-thirds of manager and staff respondents.
Dig deeper: Skills-based hiring for modern marketing teams
Employee turnover
In 2023, we asked survey respondents if they noticed an increase in employee churn and whether they would classify that churn as a “moderate” or “significant” increase. For 2024, given the attention on cost reductions and layoffs, we asked if the churn they witnessed was “voluntary” (e.g., people leaving for another role) or “involuntary” (e.g., a layoff or dismissal). More than half of the marketing technology professionals said churn increased in the last year. Nearly one-third classified most of the churn as “involuntary.”
Men and Women
This year, instead of using average salary figures, we used the median figures to lessen the impact of outliers in the salary data. As a result, the gap between salaries for men and women is even more glaring than it was previously.
In last year’s report, men earned an average of 24% more than women. This year the median salary of men is 35% more than the median salary of women. That is until you get to the upper echelons. Women at director and up earned 5% more than men.
Methodology
The 2024 MarTech Salary and Career Survey is a joint project of MarTech.org and chiefmartec.com. We surveyed 305 marketers between December 2023 and February 2024; 297 of those provided salary information. Nearly 63% (191) of respondents live in North America; 16% (50) live in Western Europe. The conclusions in this report are limited to responses from those individuals only. Other regions were excluded due to the limited number of respondents.
Download your copy of the 2024 MarTech Salary and Career Survey here. No registration is required.
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