Cookie matching is an essential part of cross-device tracking, online-to-offline tracking and identity resolution. It refers to the process of matching user IDs across different devices and platforms through the use of cookies. Without cookie matching, it would be impossible to track user behavior across multiple devices and accurately attribute marketing efforts to revenue generated.
Cookie matching involves the synchronization of user data between different ad tech vendors or marketing partners. The process typically involves the use of third-party cookies, which are small pieces of data that websites store on users' browsers. These cookies are used by ad tech vendors to track user behavior across multiple sites and devices.
When a user visits a website, the website stores a cookie on their browser. This cookie contains a unique identifier that is used to track the user's behavior on that site. When the user visits another site that is part of the same ad tech ecosystem, the third-party vendor can access the same cookie and match it with their own identifier for that user.
Online-to-offline tracking involves linking online user activity to offline purchases or other actions. Cookie matching is crucial for this type of tracking because it allows marketers to link a customer's online activity with their in-store purchases or other offline actions.
Marketing attribution involves identifying which marketing efforts led to revenue growth or other KPIs. Cookie matching plays a key role in this process because it enables marketers to accurately attribute revenue generated from a single customer across multiple devices and platforms.
As with any form of data tracking, cookie matching raises privacy concerns. Some users may be uncomfortable with third-party vendors collecting data on their browsing behavior across multiple sites and platforms. To address these concerns, ad tech vendors must comply with privacy regulations and provide users with clear and transparent data policies.
Identity resolution involves linking disparate data sources to create a complete picture of an individual customer's behavior. Cookie matching is one method that advertisers use to achieve this goal. By matching cookies across multiple devices and platforms, advertisers can collate all the data they have on a user into a single customer profile.
The benefits of cookie matching include more accurate cross-device tracking and marketing attribution, as well as improved identity resolution capabilities. This enables marketers to more effectively target their ideal customers and deliver personalized messaging across multiple devices and platforms.
References:
Ho, J. (2018). Cross-Device Tracking: A New Challenge for Consumer Privacy. Journal of Public Policy & Marketing, 37(2), 312-319.
Lyons, C., & Hahn, C. (2017). Understanding Online-to-Offline Tracking in Retail: A Review and Research Agenda. Journal of Interactive Marketing, 38, 34-41.
Schlesinger, R. (2019). Measuring Marketing Attribution Effectively: The Importance of Cross-Device Tracking. In Advanced Customer Analytics (pp. 149-161). Springer International Publishing.
Singer, N., & Hsu, T. (2017). What Is Identity Resolution—and Why Should Marketers Care? Harvard Business Review Digital Articles, 1-5.
Turow, J., Kingstone, J., Hoofnagle, C., Bleakley McDowell, E., & Mulligan Deirdre K.(2017). The Tradeoff Fallacy: How Marketers Are Misrepresenting American Consumers and Opening Them Up to Exploitation.Report.Coalition for Sensible Safeguards.Washington,D.C.:George Washington University.
