A Case Study of Disney and Unified ID 2.0
With the planned deprecation of third-party cookies next year, big publishers like Disney and Paramount have been exploring alternative identity solutions like Unified ID 2.0 (UID2). The Trade Desk, which developed the program, has successfully signed up a host of partners to support UID 2.0. However, brand marketers have been slow to get involved. Most advertisers still have first-party data as their first choice and are waiting for the dust to settle on the third-party cookie question before making a significant investment. But with the drop in targeted reach on Facebook, brands are ramping up their sense of urgency. This article will explore why marketers should care about UID2.0.
In July 2022, Disney announced they would use The Trade Desk’s Unified ID 2.0 and, specifically, the Unified ID 2.0 clean room. Disney agreeing to a deal to utilize Unified ID 2.0 is a significant milestone for UID 2.0 because it introduces a major advertising deal to the new ecosystem. The more inventory using Unified ID 2.0, the easier the prominence and value of UID 2.0 grows. Data from Disney’s initial campaigns using Unified ID 2.0 are now being reported, and this article will share some of those recent announcements. First, let’s provide an essential foundation before diving into the Disney deal’s details.
Third-Party Cookies Are Nearly Gone and Alternatives Are Expanding
Firefox and Safari browsers have already phased out cookies. Google will phase out third-party cookies in their chrome browser by 2024, which accounts for 60% of all browser share. Browsers are removing third-party cookies, but massive fines are also being divvied in lawsuits. In just one lawsuit in early 2022, Google and Amazon were fined $163 million centered around third-party cookies. eMarketer conducted a recent survey to see how Marketers and Customer Experience Professionals planned to track and target consumers in a cookie-less future. The graph to the right shares what that survey revealed.
Contextual and other methods are interesting approaches, but a more robust, scalable solution is in need of marketers. With third-party cookies quickly being phased out of the modern web, where does the future of audience targeting go? This is where Unified ID 2.0 comes in and the future looks bright for Unified ID 2.0.
UID 2.0 Is the Future, but How Does a Brand/Publisher Utilize Unified ID 2.0?
There are currently four main ways a brand can upload first-party data into the Unified ID 2.0 system.
- Upload directly to The Trade Desk.
- Build a system so you can interface with UID 2.0 using the API.
- Push from a CDP such as Adobe, LiveRamp, Lytics, Neustar, or Tealium.
- Push from a clean room such as Environics, InfoSum, Hobu, Optable, or Snowflake.
Once a publisher sends the PII and privacy settings to a Unified ID 2.0 operator, the operator hashes the information using an encryption key from the UID 2.0 administrator. The publisher then receives the encrypted information as a UID2 token. The token is shared with the Supply-Side Platform (SSP), and the SSP sends the token in the bid stream data for use during real-time bidding (RTB), while an ad exchange or data provider shares the token with a demand-side platform (DSP). The token is stored as a first-party cookie on the user’s browser. The DSP receives a bid request with the UID 2.0 token, decrypt it to get the raw UID2, and a bid is placed.
What is the Unified ID 2.0 Clean Room?
The fourth way a brand can tap into the Unified ID 2.0 approach is by using a clean room, which is precisely the approach Disney is taking.
Unified ID 2.0 is a privacy-focused, unencrypted alphanumeric identifier created from a user’s email address or phone number. It is independent of third-party cookies. This combination allows advertisers to run personalized ads without compromising the consumer’s privacy.
A clean room provides a way for secure data exchange. The Unified ID (UID) 2.0 clean room provides advertisers with an extra layer of data protection as advertisers tap into the power of Unified ID 2.0. In this case, Disney connects with the UID 2.0 clean room to provide personalized, privacy friendly ads to their consumers.
Ok, Disney Now Works With Unified ID 2.0, but What’s Next for Disney?
Now that Disney has its network set up to use Unified ID 2.0, the next step is for a brand to utilize the integration. In January, Disney announced at its annual Tech & Data Showcase that Unilever will become the first brand to strategically test the integration of Disney with The Trade Desk’s Unified ID 2.0 framework.
Disney now plans to expand the Unified ID 2.0 framework to Hulu and other properties.
Programmatic Is Positioned Well With UID 2.0
History has taught that those who adopt technologies like UID 2.0 earlier in the game will be benefited. However, if you adopt too early, you have to be the one to work out the kinks. Adopting new technologies is always best as larger companies have worked out the bugs. UID 2.0 is now being adopted by major publishers, supply-side platforms, and display-side platforms. Disney and other large groups have been working out the wrinkles for the past year and the opportunity for you to adopt the approach is prime.
Programmatic marketing is positioned well to take advantage of “the death of cookies” and the emergence of Unified ID 2.0. Get Above The Fold uses cutting-edge technology and works with only the best partners. Partnering with Above The Fold gives you an opportunity to utilize the marketing approaches and technology that will usher in the next generation of audience targeting. The third-party-cookie is on it’s way out, but you can take advantage of the next generation of audience targeting today.
We would love to walk you through our capabilities, why our approaches are future-proof, and how our strategies are proven to drive results.