Identity Without Oversight | AdExchanger

"Alternate IDs have trod a rocky road for years, from initial concerns over email-based identifiers to the fact that third-party cookies never forced adoption as the market initially anticipated. So are alternate IDs just waiting for the right moment to become the preferred matchmaker between buyers and sellers - or are they more of a shot in the dark, like a Craigslist missed connection?"

"When a CTV publisher flubbed its encryption key, making its UIDs undecodable, it discovered two things: First, it was disappointed that The Trade Desk, which administrates the alt ID, didn't notice that none of the publisher's IDs was readable. Second, once the publisher fixed the implementation a few months later, it discovered that the change made zero impact to their revenue."

"After being prodded to adopt UID2 for years by The Trade Desk, it felt doubly let down by the DSP, since the demand wasn't there. But this accidental A/B test ended up being a useful data point to examine for what the future of alt IDs might look like - which we unpack in the episode."

"Then, Kochava battled with the FTC for almost four years over allegations that it shared sensitive location data that could tie users to specific health care facilities and places of worship. Now Kochava has settled the case with the government consumer watchdog organization and will no longer share sensitive location data without consent."

Alternate IDs have struggled to gain traction, moving from early concerns about email-based identifiers to the realization that third-party cookies did not drive the adoption that was expected. A natural experiment occurred when a CTV publisher’s encryption key was mishandled, making its UIDs undecodable. The publisher found that The Trade Desk did not detect that none of the publisher’s IDs were readable. After the publisher corrected the implementation months later, revenue showed no measurable change. The outcome provided evidence about the practical impact of UID2 and what future adoption could depend on. Separately, Kochava settled with the FTC after years of allegations involving sharing sensitive location data tied to health care facilities and places of worship, agreeing to stop sharing sensitive location data without consent.

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