Thursday, July 18, 2024

Second-Party Data’s Role in Ad Targeting

The advertising industry is rapidly changing to reach individuals across various websites and devices in a better way. In this context, second-party data sharing is learned to be the next big breakthrough.

It is a known truth that there are two main types in internet cookie and these are first-party and third-party. The first-party cookies are like memory cells for websites. These basically store session data and thereafter enhance user experience by remembering the preferences. The third-party cookies track individuals across various websites and this enables targeted advertising based on their browsing history.

Do know that third-party cookies are important in delivering personalized ads as well as driving marketing performances. However, the cookies have raised legitimate privacy concerns. Stakeholders like regulators and tech giants now have collaborated to phase out such cookies from Google Chrome, Apple Safari, Mozilla Firefox and more such browsers.

The elimination is equipped with drawbacks. Users may now encounter irrelevant ads. Simultaneously, advertisers may struggle to get same return on investment.

So, here comes the second-party data sharing as a solution to the drawbacks. It has already embraced a plethora of advertising networks.

Programmatic email advertising approach in it uses hashed email addresses to deliver targeted ads directly to specific individuals through email newsletters. Publishers can ensure privacy-compliant ad targeting without relying on tracking cookies.

Secondly, informed web ads may enhance ad targeting by appending hashed email addresses or similar identifiers with the help of links within the content. Clicking on the links passes the data to the ad server and this enables personalized ad delivery without tracking cookies.

Active logins is one another way and it involves collaboration between publishers, ad networks, community software providers and email service providers. Leveraging hashed email addresses or unique identifiers helps in delivering targeted ads to individuals.

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