Alt IDs: An Improvement or Replacement?

The evolution of Alt IDs in adtech marks a pivotal moment in our industry's trajectory. We're all experiencing the realities of consumer targeting shifts as third-party cookies fade away - but so many brands, agencies and vendor partners question their impact. It seems like there's two camps forming: people thinking Alt IDs are simply a replacement to cookies, and others thinking Alt IDs are an improvement over past targeting capabilities.

From where I sit, Alt IDs really are a means of providing sophisticated, precise, and consumer-centric insight while adhering to today's evolving privacy regulation and expectations. They're a true improvement over targeting and measurement capabilities of the past.

Over the last few years, almost everyone in the industry has cataloged what solutions or strategies they can use to keep targeted campaigns and attribution a reality. We've seen the growth and broad adoption of tools like alternative IDs, Google's Privacy Sandbox, Contextual tools, and a determined effort to develop first-party data troves. However, in reality most of those options fundamentally benefit larger legacy brands or digital marketing platforms. Think about it… most brands and advertisers developing their first-party data programs now, for example, will have a big hill to climb to gather enough data to compete with what's already available via Meta, Amazon or X Corp.

It's not that first-party data isn't an effective route, but in most cases it's beneficial to have a few approaches here.

Realistically, Alt IDs stand as the most frictionless solution to continue targeted campaigns without third-party cookies - all while remaining in compliance with privacy regulations. While there is a growing number of Alt ID options appearing, advertisers and publishers using these tools are starting to broadly acknowledge Liveramp's RAMP ID and the Trade Desk's UID 2 as ‘industry standard.’

While it took some time to get to this position, it's very advantageous for publishers and advertisers to incorporate these Alt IDs into their planning and approaches.

Again, I've heard several clients and industry peers question if Alt IDs are just a “replacement.”

Here's the thing, Cookies followed people around the internet to log relevant information, and did so continuously. Alternatively, Alt IDs are predicated on consumers opting-in to share specific pieces of information. This often takes the form of asking for a person for their email and phone number when they sign up for a service, app or program.

From there, it's important to call out that no data is actually stored on the local device or in the user's browser. As user consent for features and abilities within an app, there's an agreement in place that enables the app to send a privacy compliant version of that information to approved third parties. That's where the Alt IDs come in - advertisers don't get the consumer's specific email and other personally identifiable information (PII), they receive an Alt ID. The ID itself, which consists of numbers and letters, is not persistent - the system is only designed for momentary use. Typically, Alt IDs stay active anywhere from 24 hours to seven days; it varies based on Alt ID provider. So, they clearly offer similar deterministic capabilities, but also provide a heightened level of privacy to the consumer.

In practice, advertisers integrate their first-party data with Alt ID providers. Then, when “turning knobs” in their DSP dashboard, the advertiser can refine targeting and segmentation using specific information based on their first-party data tied to these IDs. Advertisers can also target based on first-party data supplied by other companies as well. Essentially, an advertiser could say, “I want to target all users that purchase athletic apparel.” From there, it would target the most relevant Alt IDs of users that viewed or purchased athletic apparel from any company sharing first-party data with that Alt ID provider.

The publisher side is a bit more complex, but still pretty simple. Publishers need to make sure their app is a good fit for Alt IDs; they need to ensure their data collection is consented. Additionally, their terms of service and privacy policy must be clear about what is being done with the collected information. For implementation, publishers should reach out to each Alt ID solution - every Alt ID is different when it comes to implementation. Alternatively, publishers can work with a third party that is already set up to integrate Alt IDs.

Once brands, advertisers and publishers have their Alt ID systems in place, they can ensure targeted and measurable campaigns are possible going forward. For example, we're seeing the benefits of Alt IDs first-hand in the retail vertical. The world's largest physical and online retailers are constantly looking for ways to expand beyond the confines of their walled garden platforms. In fact, these large retail organizations utilize Alt IDs to find audiences across apps, web, CTV to extend their reach. In a way, they're taking a page from the in-app gaming strategy book - they're working to effectively ‘poach’ consumers from competitors' platforms, or appear more relevant across consumers' research portion of the purchase cycle.

As third-party cookies finally sunset, Alt IDs emerge as one of the best approaches to execute targeted campaigns while adhering to evolving privacy regulations. With prominent options like RAMP ID and UID 2 gaining traction, advertisers and publishers alike stand to benefit from incorporating them. By embracing Alt IDs, advertisers can ensure targeted and measurable campaigns, while consumers can enjoy a more personalized and privacy-friendly advertising experience.