Navigating the Challenges of Sending First-Party Data to Supply Side Platforms

Introduction

As publishers seek to leverage first-party data in the context of digital advertising, they often face significant challenges, particularly when it comes to integrating this data with supply side platforms (SSPs). Understanding these challenges is crucial for publishers to maximize the value of their first-party data and enhance their advertising strategies.

The Current State of First-Party Data in Digital Advertising

Today, the landscape of digital advertising relies heavily on third-party cookies and data aggregators, which often lead to transparency issues and user trust erosion. Publishers, therefore, are increasingly turning to first-party data as a more reliable and engaging alternative. However, the process of sending first-party data to SSPs remains complex and fraught with challenges.

Reasons for the Lack of First-Party Data Transfer

1. OpenRTB Standards Lacking in First-Party Data Support

One of the primary reasons why first-party data is not extensively used in digital advertising is due to the limitations of the OpenRTB standard. OpenRTB supports segments and categories being sent through a bid, but most SSPs and demand-side platforms (DSPs) do not look for these values, or if they do, bidders often ignore them. This lack of consistent support makes it challenging for publishers to effectively use first-party data in their campaigns.

2. Lack of Trust in the Current Ecosystem

The existing ecosystem is rooted in a zero-trust model, which poses additional challenges. Publishers make their inventory available to exchanges on a zero-trust basis. In this model, the exchange is responsible for verifying the authenticity of the user and syncing that user to the DSP's representation of the user. Any third-party data is typically attached through syncing to various third-party source IDs. This lack of trust and transparency can significantly hinder the effectiveness of first-party data.

Why These Challenges Exist

1. The Lack of Standardization

To illustrate, let's consider a high-value segment such as "Auto Buyer." In an ideal scenario, publishers would be able to target users who have recently shown interest in buying a car by, for instance, searching for car information online. However, without standardized mechanisms to effectively segment users, a publisher could potentially claim that all of their users fall into this segment. This misrepresentation can undermine the integrity of first-party data and the overall effectiveness of targeted advertising.

2. The Trust and Transparency Issues

There are deeper reasons for these challenges, particularly the prevailing lack of trust and transparency in the digital advertising ecosystem. For example, when a publisher makes their inventory available to an exchange, there is no reliable way to verify whether the data being used is accurate and representative. This is compounded by the reliance on third-party data, which can be manipulated or compromised.

Path Forward for Publishers

To overcome these challenges, publishers can take several steps:

1. Standardize First-Party Data Formats

To fully leverage first-party data, it is essential to standardize the formats and methods by which this data is captured and transmitted. Publishers should work with industry organizations and partners to establish consistent standards.

2. Build Trust and Transparency

Fostering a culture of trust and transparency is crucial. Publishers can achieve this by implementing robust user verification processes and ensuring that their data practices are transparent to users. This could include providing clear and concise privacy policies and giving users control over their data.

3. Leverage Technology and Partnerships

Utilizing advanced technologies and forming strategic partnerships can help publishers navigate the complexities of first-party data. For example, working with data management platforms (DMPs) or consultancies with expertise in data integration can be highly beneficial.

Conclusion

While the challenges of sending first-party data to SSPs are significant, they are not insurmountable. By standardizing formats, building trust, and leveraging technology, publishers can effectively integrate and utilize their first-party data to enhance their advertising strategies and drive better results.