The Cookies Are Crumbling: In-App Device IDs Deliver Better Targeting Performance Versus Website Cookies.

Big data has had a big impact on the marketing landscape. As more brands work to know more about their audience and market to them in smarter, more effective ways, the thirst for more data continues to grow. While the shortcomings of cookies are becoming increasingly apparent in today’s mobile connected world, marketers desire for better data has started shifting ad spend into in-app advertising, a platform that provides more robust identifiers and data to target users.

First-Party Data for Better Targeting

In-app advertising targeting capabilities are based on users’ Device ID data. Device IDs are the unique identifiers of Smartphones and provide the unique link to a rich source of first-party data such as geolocaiton, device model, OS and many others. These data points enable marketers to improve targeting and return on investment (ROI) including by:

  • Enhancing demographic data: Advertisers can layer demographic data on top of Device ID and location data to grow their audience base by building lookalike audiences based on their typical customer profile.
  • Re-engaging audiences: Use location data to keep users coming back to brands they already engage with. For example, if a user shops at a department store in the morning, they can be targeted in the afternoon with an ad for a relevant product from that store
  • Tracking consumer journeys: Understand what locations consumers frequent the most, how much time they spend there and where they go before and after.
  • Driving sales: Serve ads in real time to make offers more relevant to consumers. For example, if a user is close to a grocery store, they can be shown an ad for an offer at that specific grocery store.

Another advantage of Device IDs is that they last longer than cookies. Research has shown that Device IDs last for an average of 21 months, while the average cookie lasts for less than a day. With access to more data over more time, Device IDs provide more robust and more reliable information to use for ad targeting.

Beat the Blockers

Not only do Device IDs provide deeper, more accurate audience data, but they also avoid the pitfalls of ad blockers. Ad blockers hinder the effectiveness of using cookies for targeting, and the use of ad blocking software continues to grow. In mobile, 75% of cookies are rejected, and iOS 12 introduced tools that effectively eliminates tracking cookies. With more and more ad tracking cookies being blocked or deleted by web browsers, the cookie is becoming a less and less reliable means of targeting users. This trend has yet to impact in-app ads, which may be one of the many reasons that eMarketer expects only 17.4% of mobile ad dollars to be spent on the mobile web in 2019.

Better Targeting Means Better Performance

The enhanced targeting capabilities offered by Device IDs can improve campaign ROI by 41%. The more relevant ad content is to users, the more likely they are to engage with it. Because Device IDs provide more robust data about users, marketers are able to better tailor the messages users receive. With more advanced targeting capabilities, it’s no surprise that apps produce more than double the click-through rate of web and more than 13 times as much revenue.

Targeting, Performance and More

Working with a supply side platform (SSP) is a surefire way to take advantage of the enhanced targeting that only in-app advertising offers, but marketers’ expectations shouldn’t stop there. SSPs like display.io go beyond providing partners with the targeting benefits Device IDs offer.

With display.io as a partner, marketers can also benefit from a transparent, brand-safe, fraud-free environment. Concerns over ad fraud and inaccurate viewability metrics have plagued the in-app marketplace, but display.io has solved for them. With pre-bid fraud prevention, direct relationships with vetted app publishers and industry-accredited viewability metrics, marketers can rest assured the improved performance they see is verified and fraud-free.