Seller Defined Audiences (SDA), introduced by the IAB Tech Lab on February 24th, 2022, emerged as a groundbre…
Seller Defined Audiences (SDA), introduced by the IAB Tech Lab on February 24th, 2022, emerged as a groundbreaking solution amid the evolving prospect of digital advertising. As the inaugural initiative stemming from Project Rearc, a strategic response by the IAB to Google’s impending third-party cookie deprecation in 2023, SDA signifies a pivotal shift in audience addressability methodologies.
Empowering Publishers with First-Party Data
SDA revolutionizes audience targeting by empowering publishers to harness their invaluable first-party data and amplify its reach while circumventing data breaches and minimizing reliance on third-party identifiers. Unlike conventional methods like Private Marketplace (PMP) or deal-based mechanisms, SDA seamlessly integrates within the bidstream itself, operating as OpenRTB bid request metadata across various platforms including browsers, applications, and Connected TV (CTV) environments.
Segmentation with Precision
Central to SDA’s functionality is the segmentation of users into distinct categories outlined in the IAB’s Audience Taxonomy. Currently boasting nearly 1700 categories, this taxonomy classifies users based on Purchase Intent, Interest, and Demographic criteria, providing publishers with a comprehensive framework for audience segmentation.
Unveiling the Mechanics of SDA
Seller Defined Audiences operates through a streamlined process encompassing three fundamental steps:
1. Audience Assessment: Publishers evaluate their first-party audiences and, in collaboration with their Data Management Platform (DMP), categorize users into one of the IAB’s Audience Taxonomy categories using the standardized Data Transparency Standard (DTS) schema.
2. Integration of Segment ID: Publishers embed the segment ID corresponding to the relevant taxonomy in the bid request using the OpenRTB 2.6 specification, with Prebid.org header bidding integrations being the recommended approach for transmitting SDA values.
3. Decision-Making by DSPs: Demand-Side Platforms (DSPs) receive bid requests containing SDA metadata and determine whether to place bids, leveraging the taxonomy’s Unique ID for informed decision-making.
Unlocking the Potential of SDA Cohorts
While audience cohorts are not a new concept, Seller Defined Audiences introduces novel mechanics that diverge from traditional methods. Unlike algorithmic solutions like Google Topics, SDA empowers publishers to leverage their trove of first-party data and audience insights across diverse properties, offering unparalleled granularity in targeting. By assigning highly specific SDA cohorts, publishers enable advertisers to optimize their targeting strategies, resulting in enhanced bid acceptance rates and augmented revenue streams.
The Implications for Media Owners
From a publisher’s perspective, SDA presents a paradigm shift in monetizing granular first-party data at scale, free from the constraints of third-party cookies or tech dependencies. Moreover, SDA operates across multiple technical environments, ensuring inclusivity across browsers, applications, and CTV platforms while affording publishers complete control over their data and targeting strategies.
Embracing a Privacy-First Approach
SDA embodies a privacy-first paradigm by leveraging existing programmatic technologies such as OpenRTB, Prebid, and DTS to facilitate cohort-based targeting. In an industry characterized by the absence of a one-size-fits-all solution post-cookie deprecation, SDA emerges as a vital addition to the programmatic toolkit, offering a multifaceted approach to preserving addressability and driving advertising efficacy.
In Conclusion
Seller Defined Audiences emerges as a transformative force in the realm of digital advertising, heralding a new era of precision targeting and audience addressability. As the industry navigates the complexities of a cookieless future, SDA stands out as a potent tool for publishers and advertisers alike, offering unparalleled granularity, control, and efficacy in audience targeting strategies.
