Consumers are using multiple channels to buy products and services from different brands. It becomes difficult for marketers to integrate the consumer’s data to use it efficiently to further improve user experience. Identity resolution helps marketers have access to the data from multiple platforms to get a complete picture. Every time a consumer makes a purchase online, the marketers get more data and information regarding his buying behavior. The more data they get, the more it helps them personalize their campaigns.
On the other hand, identity resolution has become a challenge as well with the increase in the consumer’s sentiments and demands about their privacy. They want to know the details about how and where their data is being used by the company.
Let’s first talk about how identity resolution is a challenge in the programmatic landscape.
Privacy Concern and GDPR
Identity resolution has become a challenge after the introduction of the GDPR (General Data Protection Regulation) policy. It has caused an increase in the privacy standards in the programmatic landscape. The digital world is adapting to the change by implementing new regulations and restrictions about how the personal data of a consumer should be used, especially when it comes to using third-party cookies.
Apple has also introduced App Tracking Transparency (ATT) recently which is the biggest milestone in deprecating the third-party identifiers. Google is also planning to do the same following the footsteps of Apple. It is quite evident now that the digital world is going to transform after the elimination of third-party cookies.
According to research, two-thirds of US adults said that the Government should participate more in regulating how companies are collecting data to handle privacy issues. The start of 2022 has been great as two bills are introduced in the first 18 days.
- As per the Terms-of-service Labeling, Design, and Readability (TLDR) act, the companies are required to add an easy-to-understand “Summary Statement” on the site for users alongside their terms and conditions. It should mention how and why the data of the user is being used. This way, the company will be getting informed consent from the users instead of manipulating or tricking them to agree with the terms without even understanding them.
- As per Banning Surveillance Advertising Act, marketers are not allowed to practice any behavioral targeting technique by using the user data. This bill might not pass but it clearly shows how actively legislators are taking part in protecting user data.
Moreover, the Government has also charged Facebook and Google with heavy fines for making it difficult for their consumers to decline cookies. It is a way to manipulate consumers to have their consent in tracking their data. The bills haven’t yet passed but the Government is constantly sending messages to the consumers to take care of their data on their own.
Another interesting research shows that 86% of US marketing decision-makers have admitted that they need third-party cookies to run their campaigns effectively. Also, 32% of US adults have agreed that they choose the option of “accept all” when a website asks them about cookies.
This way, identity resolution is now a challenge for everyone. It stays at the top of the mind of marketers as they are dependent on the user data to target the audience and make their ads work efficiently.
Identity Resolution As An Opportunity
Identity resolution is a great opportunity for marketers if they know how to make the best use of it.
Consistent customer experience
If a marketer doesn’t have a detailed understanding of the user’s data, his efforts to target the audience will suffer in the end. For instance, if he cannot identify his user who is using different devices, he might reach him with the same offer again. It can offend the user as he might have made the purchase already. The reputation of the brand will also get affected. Also, the user might avoid considering any offers from the same brand in the future. So, identity resolution is a great opportunity that way as it helps provide a consistent customer experience.
Increase in marketing effectiveness
If a marketer only has a partial view of his user, 21 cents of every dollar he spends on advertising will be wasted. Identity resolution can help a marketer identify the same profiles to save both his time and money. It will ensure that there are no duplicates or errors in his digital marketing. So, it will help him advertise his product or service to the right user which might make the purchase as well. It will improve the future effectiveness of his marketing campaign.
As mentioned above, the demands of the users regarding the protection of their data have increased. However, he can use identity resolution to enhance the user experience by maintaining their privacy at the same time. He can keep his users informed regarding how he is going to use their data. Moreover, he can identify users without storing their information on the platform.