When Google announced in 2021 that it was banning third-party cookies in Chrome, many industries were thrown into turmoil, including e-commerce. Apple, Mozilla and Microsoft have taken a similar stance. However, with the majority of the world's internet users – about 2.65 billion – using Chrome, Google's ban has bigger implications. Third-party cookies have been one of the lifelines for advertisers and marketers now scratching their heads for solutions. Fortunately, Google has postponed the ban until 2024, giving affected parties time to make adjustments. No doubt the emphasis will now shift to first-party dates and, by extension, CDP. But even CDP will need some help if it wants to meet the increasing demands of the cookieless world. That extra help comes in the form of identity resolution technology.
WHAT IS IDENTITY RESOLUTION?
The main limitation of banning third-party cookies is the loss of the ability to recognize and distinguish individuals. So marketers can repeatedly target the same people with multiple messages and offers, while missing out on some completely. In addition, companies will have silos in their database and struggle to personalize services effectively. Identity resolution currently represents the best bet to improve that.
Identity resolution is a form of attribution technology that aggregates customer data across touchpoints into a single customer profile. It connects identifiers from different interactions, browsers and even devices to create a unified view of each customer. Using this technology, marketers and advertisers can maintain the quality of customer engagement in a world without cookies.
Identity resolution has two modes of operation. They contain:
- Deterministic matching: This model identifies customers by comparing anonymous identifiers with first-party data. The advantage of this is the great accuracy with which matching is done.
- Probabilistic matching: This model relates the degree of confidence that two or more identifiers belong to the same individual. While it lacks the certainty of deterministic matching, it is very useful when first-party data is scarce.
HOW IDENTITY RESOLUTION CDP HELPS IN A COOKIE-FREE WORLD
Many CDP providers integrate identity resolution into their package software because of the great value it has. Even without the pressure of doing away with cookies, identity resolution greatly improves the functionality of CDP. Now that Chrome and other major browsers don't allow third-party cookies, its importance is greater for CDP.
Here are four great ways identity resolution will contribute to your CDP as we march into the cookieless world:
UNIFY CUSTOMER AND ANONYMOUS DATA
Using the deterministic matching model, identity resolution can match customer information with anonymous data. For example, a known customer may interact with your app or site after switching their IP address or smartphone device. In such a case, there is a risk of fragmentation of the customer experience. With identity resolution, however, that customer can continue to enjoy a personalized service despite the change.
STRENGTHEN CUSTOMER DATABASE
Another great feature of identity resolution is the potential to connect the data silos in your CDP. Using a combination of deterministic and probabilistic matching, marketers can discover previously unknown information about their customers. CDP strives for a unified 360⁰ view of every customer. Identity resolution brings your company one step closer.
IMPROVES OMNICHANNEL STRATEGY
Identity resolution can resolve identifiers regardless of the contact points they are collected from. Therefore, this attribution technology will come in handy for businesses trying to execute an omnichannel marketing strategy or deliver an omnichannel customer experience. By unifying ID, the company can ensure consistency of the customer journey, regardless of the browser or device they use.
BETTER CONSENT MANAGEMENT
Google's argument for ushering us into a world without cookies is the need to give people more control over their personal data. However, this can cause some companies to struggle to comply with data privacy rules. A CDP based on identity resolution helps avoid such problems. Consent is better managed, even if a customer gives consent on an Android and then revokes the same consent two weeks later on an iOS.
In short, the ban on third-party cookies will inevitably affect businesses when it comes into effect. However, the changes that occur do not have to be too drastic. Identity resolution in CDP has the power to bridge the gaps and should be embraced by all.
