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Smart devices in the USA have become ubiquitous in our daily lives. From smartphones to smart home devices, a growing trend of connected devices permeates households.
According to a survey by the Deloitte, nearly half of the households in the USA purchased at least one new connected device in 2023. This is a significant increase from the previous year, showcasing the rapid adoption of connected devices.
As the number of connected devices continues to grow, it presents a unique opportunity for the ad tech industry to target customers across multiple devices. Advertisers are turning to cross-device targeting for their marketing campaigns to capitalize on this trend.
In this article, we will explore the concept of cross-device targeting, its benefits and limitations, and the technologies powering it.
Cross-device targeting is a method of digital advertising that targets the same users across multiple devices. It aims to deliver relevant and personalized ads to each user, regardless of their device. This enables advertisers to reach their customers at various touchpoints in their consumer journey.
Imagine a scenario where a customer starts browsing for flights on their laptop. Although he is interested in the offer, he hasn’t completed the purchase. Later that same day, while scrolling through social media on his phone, he sees an ad for the same flight offer.
With cross-device targeting, the advertiser can connect the dots between the customer’s laptop and phone, giving them a more complete understanding of their behavior. This allows them to deliver a more targeted and relevant ad, increasing the chances of conversion.
Multi-device usage patterns vary amongst individuals. Some users prefer browsing on their smartphones while others prefer using a tablet or laptop.
According to Kantar’s Worldpanel ComTech data, in the United States and Great Britain, only 10% of smartphone owners own all four device types (smartphone, tablet, laptop, and smartwatch). This suggests that the majority of users have a combination of devices.
Moreover, with the rise of smart home devices, there is an increasing trend towards multi-device usage within households. According to GfK’s survey, one-third of US consumers own two or more smart home devices, with millennials leading the pack at 64%.
42% of American households own two connected devices, with a smartphone being one of them.
The combination of multiple connected devices within a household creates a complex web of user data that advertisers can tap into with cross-device targeting
Cross-device targeting uses various methods to identify and connect user identities across multiple devices. Collecting data on user activities across multiple devices helps advertisers build an accurate picture of a user’s interests and preferences.
Tracking and identifying a user is the first step to cross-device targeting. Then, the collected data is matched with other devices associated with the same user.
There are two main methods used to identify users in cross-device targeting:
Deterministic cross-device targeting uses a unique identifier, such as a login or email address, to match the user across devices. The user’s identity is known and verified, making it a reliable method for targeting. For example, when users log in to their social media accounts on multiple devices, the platform can match their identity across all devices.
This method offers more accurate and reliable data but is limited to users who have logged in or provided their email addresses. A significant drawback is that it requires user consent, which can impact the scale and scope of data collected.
Probabilistic cross-device targeting uses statistical algorithms to analyze user activities and patterns. This method uses non-personally identifiable information such as IP addresses, device type, and location to identify the user across devices.
These data points are then used to create a profile or “fingerprint” of the user, which is compared with other devices to find a match. This method does not require user consent as it relies on data analysis rather than user identification.
While this method offers a broader reach, it is less accurate and reliable than deterministic targeting. It may result in incorrect matches or missed connections between devices.
Cookies are small text files stored on a user’s device that help websites remember their preferences and track their behavior. Device IDs are unique identifiers assigned to a specific device, such as a phone or laptop.
Advertisers use cookies and device IDs to map users’ journeys across multiple devices and serve targeted ads accordingly. Advertisers can track users’ actions, interests, and preferences through these identifiers to create more accurate user profiles.
These identifiers also help match the user’s identity across devices, allowing advertisers to deliver personalized and relevant ads at each touchpoint. However, with increasing privacy concerns, there has been a push towards limiting the use of cookies and device IDs.
Cross-device targeting relies on advanced technologies to collect and analyze user data across multiple devices. Some of the key technologies powering cross-device targeting include:
Cross-device tracking tools and platforms are at the core of cross-device targeting. These tools use device graph technology or IP matching to map user identities and track their behavior across devices.
The device graph technology uses a unique identifier to connect devices associated with the same user. On the other hand, IP matching matches users based on their IP addresses and location data.
At the backend, these tools use machine learning and data analytics to make sense of the vast amount of user data collected and create a comprehensive profile of each user. This information is then used for targeted advertising.
Some popular cross-device tracking tools and platforms include Tapad, Drawbridge, and Crosswise. These tools offer robust tracking capabilities and integration with ad networks, making it easier for advertisers to reach users across various devices.
The success of cross-device targeting also depends on its integration with ad networks and demand-side platforms (DSPs). These platforms allow advertisers to target ads across various channels, including websites, mobile apps, social media, and connected TV.
Demand-side platforms are also capable of audience segmentation, allowing advertisers to target specific user groups across multiple devices. Integration with DSPs and ad networks provides a more comprehensive reach for cross-device targeting.
VenziMedia is an example of a DSP that offers cross-device targeting capabilities, allowing advertisers to reach users on all their connected devices in a single campaign.
Data management platforms (DMPs) are another essential technology powering cross-device targeting. DMPs store and analyze large quantities of user data from various sources, including cookies, device IDs, and offline sources.
These platforms use machine learning and data algorithms to segment users into different audiences based on their interests, behaviors, and preferences. DMPs can also track user behavior across devices, helping advertisers build a more comprehensive view of the user’s journey.
Cross-device targeting relies on DMPs to create and manage user profiles, which are then used for targeted advertising. Some popular DMPs include Adobe Audience Manager, Oracle Data Cloud, and Salesforce DMP.
Advertisers and marketers have much to gain from incorporating cross-device targeting into their overall advertising strategy. Some of the key benefits include:
Cross-device targeting lets marketers capture a more complete picture of their customers’ journey. By tracking user actions and behaviors across devices, advertisers can better understand how users interact with their brands at different touchpoints. Marketers must identify and target users based on their preferred devices, platforms, and channels to optimize the customer journey.
The gaps identified in the customer journey across devices can be filled by serving relevant ads at the right time and place. With enhanced customer journey mapping, marketers can create a seamless and personalized experience for their target audience.
Consumers today expect personalized and relevant ads. As world top brands continue to compete for consumers’ attention, irrelevant ads are quickly ignored or even blocked. The preference for personalized content is more obvious on mobile devices.
The user data collected through cross-device targeting allows advertisers to deliver highly targeted and relevant ads. This results in higher engagement rates and a better return on investment (ROI). With cross-device targeting, advertisers can ensure that their ads are seen by users on the right devices.
Now, it is rare for a consumer to limit their interactions with a brand to just one device. Cross-device targeting enables multi-device tracking, providing advertisers with a unified view of their customers across devices.
As customers switch between devices, cross-device targeting ensures that the interactions are connected and tracked. This unified view of the customer enables marketers to tailor their messaging and ads for each device. It also helps in understanding the customer’s overall behavior and preferences.
Cross-device targeting allows advertisers to reach their target audience across all their connected devices, including mobile phones, laptops, tablets, and even smart TVs. This expanded reach helps increase the frequency of ad exposure and maximize campaign effectiveness.
Moreover, cross-device targeting makes it easier for advertisers to track and attribute conversions. With a more complete view of the customer journey, marketers can attribute conversions more accurately and optimize their campaigns accordingly.
The indicators of campaign success have evolved from simple metrics like clicks and impressions to more comprehensive measures like customer lifetime value (CLTV) and return on ad spend (ROAS).
Cross-device targeting enables advertisers to measure the effectiveness of their campaigns holistically, taking into account the entire customer journey. This allows for better insights and optimization opportunities to improve future campaigns.
The use of cross-device targeting is not without its limitations and challenges. Some of the key ones include:
The abundance of consumer devices and platforms has resulted in fragmented user data. The lack of a centralized and standardized system for collecting and managing data across devices has made it difficult to accurately identify users and track their behavior.
Like IOS and Android devices use different identifiers, making it challenging to link a single user across devices. Analytic tools also have limitations in tracking user data beyond apps and browsers. This fragmented data can result in inaccurate targeting and ad delivery.
The collection and use of user data for targeted advertising have raised consumer privacy concerns. The data collected through cross-device targeting is highly personal and sensitive, which can make users uncomfortable. Any misuse or mishandling of this data can lead to negative perceptions of the brand and a loss of trust among consumers.
With options to opt out of tracking or limit the use of cookies, users are becoming more aware of their privacy rights. Advertisers must be transparent about their data collection practices and allow users to control their data.
Cross-device targeting relies heavily on data-matching algorithms to link users across devices. These algorithms may not always be accurate, resulting in discrepancies and inaccurate targeting.
Moreover, technical limitations like ad blockers or changes to device settings can also impact the accuracy of cross-device targeting. These challenges can lead to wasted ad spend and lower campaign effectiveness.
To overcome the limitations and challenges of cross-device targeting, advertisers can partner with a trusted and reliable demand-side platform (DSP). A DSP like VenziMedia has advanced data matching and targeting capabilities to help advertisers reach their target audience across devices.
Additionally, DSPs have access to first-party user data and can provide valuable insights into consumer behavior. Moreover, DSPs also offer tools to measure and analyze campaign performance in real time. This helps advertisers make informed decisions and optimize their campaigns for better results.
