Cookie Match Rate Insights For Data-Driven Ads

A match rate is the percentage of consumers we can find online via a cookie pool.  There are several factors to consider when we look to match offline consumer data to an online user ID or a cookie.

Some cookies are more accurate than others — as a general rule, cookies associated with retail sites tend to be strongest since the information is validated against credit card information and authenticated user registration information.

In order to find users online, we must first translate their offline personally identifiable information such as name and address or a social media site profile. The match is the alignment of an online identifier that is unique to that individual, and only that individual, to offline data, or data that is obtainable from third party sources. This online ID, which is mapped to the particular user, is what allows us to target consumers across millions of mobile devices.

There are two factors that drive match rates. First, the number of users that a match partner sees in its cookie pool of online ID’s. Second, the quality and precision of the data that is being matched. A unique ID is like a Social Security number or personal identification card. A unique ID means that John Smith, has his own unique ID and own unique cookies that are connected to him and visible to marketers for targeting on his mobile devices.

The key to developing an online ID match is the ability to link and verify data against authenticated user registration information.  There is an interesting ongoing discussion about the accuracy of cookie match rates.  Some digital marketing firms claim a match rate as high as 80%. I am not going to weigh in on this debate, but our experience has been that when we define a highly unique audience, we have an impressive match rate.

Questioning match rates

For a moment, let’s step back and consider the validity of match rates. Even when we have a higher than normal match rate for an audience segment, this really is irrelevant if the campaign messaging is off, or the landing pages fails to convert to leads.

Fortunately for SA Interactive, we have access to good and accurate data.  A significant upfront financial investment was made to build a powerful national database consisting of millions of online consumer profiles. For several of our campaigns we can claim an 80% match rate, but not all of them. To the point, the real numbers are in overall conversions. The question is, “How compelling is your story for an audience member to come to the landing page?”.

When we factor in first-party data, then our match rates are much higher. We typically get this from a partner’s CRM or their organically grown customer list.  It is not always accurate but extremely helpful as a resource for their sales team.

Match rates vary greatly by segment and depend upon the quality of the data input. Not all segments are created equal when it comes to match rates. We are always striving to become more accurate with our audiences as this is a work in progress. Match rating is not an exact science, rather an art form.

The Quality and Authentication of the Data is Key

Fortunately, SA Interactive match rates have been achieved through a methodical and disciplined approach to building out our match partner network. This network is comprised of the major big-box retailers, cellular phone service providers, utility companies, cable TV companies, news and periodical subscriptions, and affiliate group memberships to name a few. The network has grown to more than 300 partners giving us national reach among consumers and industries you are trying to reach.

These partners are gathering billions of daily transactions from authenticated users every day on the web and across multiple devices when users make online purchases. Consumers have typically created a user account with an accurate mailing address and current credit card information. The more partners, the more online profiles you can build. This ultimately helps with match rates.

Can’t feed off the cookie alone

We are also sourcing data from other places. We can overlay demographic, and census data, donor information from the Federal Election Commission (FEC) and voter files in many states and local jurisdictions.

Furthermore, we can build more accurate profiles by filling in missing pieces and by layering from different data sources. This is very time consuming and expensive, but what marketers crave the most. By layering data from different sources we can begin to build a more complete online profile ID, one that is not completely reliant on just the cookie. If you add in all those ingredients, then perhaps the 80% match rate isn’t out of the question.

Cookie match rate: The Bottom Line

So to summarize, there are several key elements to ensure accurate targeting:

  • Higher than average match rates
  • Incremental reach through a partners ecosystem
  • Data accuracy

The bottom line is that having an authenticated user will greatly improve the accuracy of the cookie and the attributes associated with the cookie. When authenticated events are used for matching, the end match rate is higher and the cookies are more accurate. The net result is expanded reach that is much more reliable, scalable and persistent.

Tell us about your cookie match rate. On average what are you seeing?  Would you like to learn more or try us to see how we stack up against your current vendors? Contact us today to learn more.

 

I have been in marketing and technology for more than 20 years and have worked in many industries and worn many hats. From independent consultant, to cooking school, to establishing technology centers, it was a Spirit led adventure that landed me in the president & owner’s seat at Element 502.

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