Signal IQ: Amazon's response for cookieless future

As cookies disappear, Amazon Ads offers solutions for a privacy-focused future. Ad Relevance targets ads using browsing behavior & AI, while Signal IQ helps publishers measure ad identifier performance.

Signal IQ: Amazon's response for cookieless future

Amazon Ads this week announced it is developing AdTech solutions built for a cookieless future. Their approach leverages AI and machine learning models, along with a new measurement id called Signal IQ.

A key aspect of Amazon Ads' strategy is "Ad Relevance." This technology analyzes vast amounts of data, including browsing behavior, purchase history, streaming activity, and real-time content information. By leveraging AI and machine learning, Ad Relevance aims to understand user journeys without relying on cookies. This allows for targeted advertising delivery across devices, channels, and content types.

While Ad Relevance focuses on targeting, Signal IQ tackles measurement on the publisher side. Launched in beta this month, Signal IQ is a new tool designed to help publishers quantify the performance of their supply-side signals, specifically focusing on third-party ad identifiers. Publishers can use Signal IQ to measure, benchmark, and optimize their use of these identifiers to better understand their audience and tailor their offerings to advertiser needs.

Amazon says Ad Relevance and Signal IQ already powers many of Amazon Ads offerings, including Amazon Audiences, Contextual Targeting, and Performance+. Results show extend addressability on up to 65% of previously anonymous impressions lowering CPMs by up to 34%, and improving CPCs by 8.8%.

The increasing complexity of the advertising ecosystem can be overwhelming for advertisers. Leading companies in the AdTech space are prioritizing solutions that balance automation with control and transparency.

Performance+ and Amazon Marketing Cloud: Balancing Automation with User Control

According to Amazon, one example is Amazon Ads' Performance+. This solution utilizes user-defined advertising goals and business signals to optimize campaigns automatically. However, advertisers retain control over factors like budget allocation and audience targeting, ensuring alignment with their marketing objectives.

Another example is the Amazon Marketing Cloud, a clean room service that allows advertisers to securely combine their first-party data with third-party signals while maintaining user privacy. This unified view of customer journeys empowers advertisers with valuable insights for building and targeting specific audiences across different channels.

Collaboration: Advertisers, Publishers, and Third-Party Services

A fragmented media landscape with various service providers necessitates simplified collaboration for advertisers. Companies like Amazon Ads are exploring solutions to bridge the gap between different stakeholders in the advertising ecosystem.

Amazon Publisher Cloud exemplifies a collaborative approach. This platform facilitates the analysis of publisher data alongside advertiser information and Amazon Ads' insights. By leveraging this combined data, publishers can create custom deals within the Amazon DSP (Demand-Side Platform) that deliver more relevant advertising at scale.

The future of addressability in advertising technology requires a collaborative effort to deliver a solution that benefits all stakeholders – customers, advertisers, and publishers. While significant progress has been made, the industry continues to evolve. Companies that prioritize privacy-preserving solutions, foster collaboration throughout the advertising ecosystem, and invest in innovative measurement tools like Signal IQ will be well-positioned to navigate the challenges and opportunities of the cookieless future.

It remains to be seen how effective solutions like Signal IQ will be in replacing third-party cookies entirely. The success of such solutions will depend on factors like user adoption, data accuracy, and ongoing innovation within the AdTech industry.

Amazon says Cox, a telecommunications company, which used Performance+ to drive more website visitors based on their online/call center engagement signals, achieved a 40% CPA improvement.

"The future of addressability and advertising technology will benefit customers, advertisers, and publishers if done right, and we’re continually exploring and inventing to navigate this interesting challenge," said Brian Tomasette, Director of Amazon DSP Products. "While we’ve made significant advancements, we are nowhere near finished. Amazon Ads will continue to be a center of innovation in the advertising industry as we strive to create meaningful connections between customers and brands around the world."

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