Home Online Advertising Will Ad Tech M&A Derail The Advertising ID Consortium?

Will Ad Tech M&A Derail The Advertising ID Consortium?

SHARE:

Development of the Advertising ID Consortium, a shared cookie-based ID service for programmatic companies, has stalled as two of the key backers, AppNexus and LiveRamp, undertake protracted M&A processes.

The consortium is still moving forward, according to sources with knowledge of the nonprofit group’s product development, but the already complicated politics of ‘co-opetition’ are exacerbated by AT&T’s takeover of AppNexus and LiveRamp’s ongoing talks to find an acquirer.

The Advertising ID Consortium is still building out its solution and new partners are still being added, said a spokesperson for the consortium.

The ID consortium is about creating liquidity between SSPs, exchanges and DSPs by consolidating third-party cookies into a single online identifier, said Joe Doran, chief identity officer of the consumer ID graph provider Signal. “That liquidity between vendors may or may not have direct benefits to first-party data owners that become involved,” he said.

While AT&T is interested in pursuing the Ad ID Consortium, which uses AppNexus’ cookie domain space as a shared ID asset, it will do its own due diligence on potential privacy or data-sharing concerns before committing resources or data to the initiative, said one executive who works on the consortium product.

And though LiveRamp benefits more than any other company from adoption of the consortium since it remains the only identity-based targeting extension from the shared cookie pool, its potential buyers are not among the consortium’s participants.

LiveRamp has also had to prioritize GDPR and the company’s M&A review, which have demanded product resources, according to company sources. An industry nonprofit initiative that isn’t core to revenue is naturally deprioritized, especially when would-be buyers consider it a potential liability.

The consortium is still adding demand-side and supply-side vendors and is working on direct marketer and publisher connections, according to sources. But where it has lagged is in adding non-LiveRamp identity companies that could target consortium cookies to online audiences – which is why MediaMath, an original founding member, left and has not rejoined the consortium.

“Our vision for this includes multiple [cross-device] options and that’s what we’re pursuing,” said Drew Bradstock, Index Exchange’s senior VP of product and one of the leaders of the consortium service, a year ago.

But the consortium service remains unchanged since last September.

The customer ID graph Signal was approached about joining the consortium but hasn’t yet because it still doesn’t support alternatives to LiveRamp’s IdentityLink targeting solution, Doran said.

“Unfortunately, the way in which the consortium has been established it is still a pay-to-play arrangement organized by a conglomerate of larger players in the programmatic space,” said Keith Petri, chief strategy officer of the cross-device ID company Screen6, referring to revenue accrued to LiveRamp when DSPs use its IdentityLink targeting service. He said the consortium has also not fulfilled its longstanding promises of product developments to deduplicate or match its ID across devices.

With the introduction of AT&T to the governance mix, Petri said delays and political challenges to mingling data are only stacking up.

Must Read

AI Is Redefining Premium Content – Which May Not Be A Good Thing

At AdExchanger’s Programmatic AI conference, media experts discussed how the rise of AI-generated content is changing the industry’s understanding of “premium” content.

The Big Story Podcast

Prog AI Live: AI’s Slippery Slop

Recorded live in Las Vegas at Prog AI, the AdExchanger team tackles a tricky question: As AI floods the feed with chaotic, addictive content and people engage with it, what does “premium” even mean anymore?

The Programmatic Auction Is Changing In Real Time – Here’s How

Two decades after the first RTB auction, programmatic is more complex than ever – and that’s before you even consider generative AI.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Publicis Acquires LiveRamp In A Major Shakeup For Indie Data Collaboration

Hundreds of exasperated and unexpected ad industry phone calls were made on Sunday, as agencies and ad tech vendors discussed the fallout of Publicis Groupe’s $2.2 billion acquisition of LiveRamp over the weekend.

Finger connecting dots on a cork board network concept

These AI Agents Want To Handle All The Annoying Parts Of Media Buying

Meet Kovva, a new AI ad tech startup tackling the unglamorous gruntwork that programmatic has never fully automated.

Felipe Cuevas for TelevisaUnivision

We Went To Eight Upfronts This Week. Here's What We Learned

Upfront week is officially over. In case you missed any of the dog-and-pony shows — including Chappell Roan belting out “Pink Pony Club” during YouTube’s Broadcast — don’t worry; we’ve got you covered.