Index Exchange is excited to announce our support for the LiveRamp IdentityLink (IDL) via the Index Exchange Wrapper. Starting this week, we will begin enabling IdentityLink transmission for eligible publishers and buyers on Index Exchange.
Benefits of the LiveRamp IdentityLink
The LiveRamp IdentityLink is a hashed, people-based identifier used for custom audience style buying in the open market across devices and environments. People-based identifiers, such as the IDL, have significant benefits over cookie-based identifiers, including:
- Unlocking cross-environment matching
- True frequency capping across supply paths and environments
- Slower decay rates
- Persistent opt-outs for users
While all of these benefits will propel the industry forward, the most transformative benefit is the ability for buyers to now transact against their high performing, first party people-based audiences on the open web.
Unlocking People-Based Buying for the Open Web
In the last five years, there has been a tremendous amount of growth in first party, people-based buying in digital advertising. What is people-based buying? Often referred to as “Custom Audiences,” this type of feature allows buyers to upload lists of customers – for example, consumers who purchased tennis sneakers in the last 15 days – and direct advertisements to them seamlessly in digital environments.
Due to the high-performance nature and ease of actioning against these audiences, this type of feature has proven to be immensely successful for buyers. The downside? People-based buying has only been available on closed platforms, also known as the “walled gardens.” According to eMarketer, the success of people-based buying/custom audience style buying helps explain why 70% of digital ad spend goes to these closed platforms, while only 45% of time is spent on said platforms. It is not the native data, but it’s the buyers’ first party data facilitated via a match that explains this disparity.
- Buyers want the flexibility of utilizing people-based buying, but on the scale of the open web.
- Publishers want to help marketers achieve their goals, and experience increased spend, bid density, and higher CPMs as a result.
How Does this All Work?
Through the LiveRamp Real Time Identity (RTI) adapter within the Wrapper, publishers can infuse bid requests with the LiveRamp encrypted envelope. The envelope is a highly encrypted container for each of the DSP-specific IdentityLinks.
RTB Adapters who support LiveRamp’s hashing Sidecar application can transmit the IdentityLink to eligible DSPs on every bid request. This capability is facilitated by Index Exchange’s Real Time Identity Framework in partnership with the Advertising ID Consortium.
More detail on overall LiveRamp functionality, including the encrypted envelope, can be found on the Index Exchange Knowledge Base.
Continued Momentum with the Advertising ID Consortium
Following the release of the Unified ID in October 2018, we are proud to debut functionality for the LiveRamp IdentityLink as the next common identifier supported by the Advertising ID Consortium. As a founding member, our goals are to reduce the amount of ad technology and unlock people-based buying on the open web via common identifiers and new frameworks, such as RTI.
With today’s launch of LiveRamp’s IdentityLink release, the open web ecosystem has taken a large step forward into unlocking people-based buying beyond walled garden environments. Buyers, through their relationships with DSPs, now have the opportunity to match their first party, people-based audiences (like tennis sneaker buyers!) on the open web.