Key Takeaways

• ID5 is an independent identity provider that helps recognize users without cookies

• It creates universal IDs that work across devices and browsers

• ID5's solution is privacy-focused and designed for a post-cookie world

• Publishers can increase revenue by making more of their audience addressable

What is ID5 and Why Should You Care?

If you've been in digital advertising lately, you've probably heard about the "cookiepocalypse" – Google's plan to eliminate third-party cookies from Chrome. This change has sent publishers and advertisers scrambling for new ways to identify users and deliver targeted ads.

Enter ID5, a company that's been getting a lot of attention as a potential solution to this problem.

At its core, ID5 is an independent identity provider that creates and manages digital IDs for users across the internet. Unlike cookies, which are browser-based and increasingly blocked, ID5's universal identifier works across different devices and browsers, including those that already block cookies like Safari and Firefox.

But let's back up a bit. ID5 was founded in 2017 by a group of adtech veterans who saw that the industry needed a more sustainable approach to identity. They build a system that doesn't rely on the traditional cookie-based approach that's been the backbone of digital advertising for decades.

How Does ID5 Actually Work?

ID5 uses a mix of techniques to create stable identifiers for users:

1. First-party data signals (like hashed emails or login information when available)

2. Device and browser characteristics

3. Probabilistic matching to connect users across different devices or browsers

When a user visits a website that has integrated ID5, the service assigns or retrieves an ID5 ID for that user. This ID can then be used by publishers and advertisers to recognize returning visitors and deliver more relevant ads.

The technical implementation usualy happens through integrations with header bidding wrappers like Prebid.js, or through direct partnerships with supply-side platforms (SSPs) and demand-side platforms (DSPs).

Why Publishers Should Care About ID5

The big benefit of ID5 for publishers is increased revenue. Here's why:

1. More addressable inventory: Without some form of identity solution, much of your traffic becomes anonymous and harder to monetize, especially in cookie-restricted environments.

2. Better ad targeting: Advertisers pay premium rates for targeted ads, and ID5 helps maintain this capability even without cookies.

3. Cross-device capabilities: ID5 can help connect the same user across multiple devices, opening up new targeting opportunities.

4. Future-proofing: As third-party cookies disappear, publishers with identity solutions already in place will be at an advantage.

One publisher who implemented ID5 reported a 35% increase in eCPM for cookieless browsers like Safari. That's significant considering Safari accounts for roughly 20% of web traffic.

How ID5 Handles Privacy Concerns

In today's regulatory environment, any identity solution needs to take privacy seriously. ID5 addresses these concerns in several ways:

• Consent-first approach: ID5 respects user consent signals and only creates IDs for users who have provided appropriate permissions

• Data minimization: The solution doesn't store personal data and uses encryption techniques

• Transparency: Users can opt out through privacy preference centers

These privacy features aren't just nice-to-haves – they're essential for compliance with regulations like GDPR and CCPA.

Getting Started with ID5

If you're a publisher interested in implementing ID5, here are the basic steps:

1. Choose an integration path: Most publishers implement through their existing header bidding setup (like Prebid) or through their ad server

2. Set up consent management: Ensure your consent management platform (CMP) is properly configured to pass consent signals to ID5

3. Test and monitor: After implementation, compare performance metrics before and after to measure impact

What Makes ID5 Different from Other ID Solutions?

The identity space is getting crowded, with solutions from companies like LiveRamp, The Trade Desk (Unified ID 2.0), and others. What sets ID5 apart is:

1. Independence: Unlike some solutions created by major DSPs or data companies, ID5 is an independent provider without conflicts of interest

2. European roots: With strong European origins, ID5 was built with GDPR in mind from the start

3. Cross-device focus: Many alternative solutions don't have as robust cross-device capabilities

Final Thoughts

As the digital advertising ecosystem moves away from third-party cookies, identity solutions like ID5 are becoming essential tools for publishers who want to maintain addressability and maximize ad revenue.

While the technology might sound complex, the core concept is simple: creating a stable, privacy-compliant way to recognize users across the open web. For publishers just starting to explore identity solutions, ID5 represents one of the more established options in an increasingly important category.

The best approach is to start testing now, rather than waiting for cookies to disappear completely. Publishers who are proactive about identity will be better positioned when the final cookie deprecation happens.