Cross-device audience ID matching will make up 58% of total UK online spend by 2020, up from 28% in 2016 according to Yahoo UK and Enders Analysis.
In a new report, the multinational technology company focuses on the role that audience IDs will play in marketing.
Audience IDs are online identity profiles that combine data from identifiers such as loyalty programmes, in-app trackers and payment technologies to give a ‘single view’ of a consumer across different channels and devices.
The report estimates that spending on audience IDs will triple over the coming years, up from €2.7billion in 2016 to €7.9 billion in 2020.
The incoming GDPR which takes effect in 2018, will slow this growth in spend down slightly. This dip will occur while marketers ensure they are compliant.
By 2020, according to the estimates, that the proportion of ad spend using audience IDs will be higher than paid search, at 68% and 55% respectively.
Giving a better picture
The report sees the driving force behind this growth as the recognition that the use of user IDs give marketers a much clearer view of exactly who is seeing their ads and where they are seeing them.
As well as better information about campaign reach and frequency exposure, IDs allow for improved attribution of purchases and conversions.
“Providing an interface between media, marketing, retail and services, audience IDs are at the heart of the data economy and increasingly important for the online consumer experience,” Matti Littunen, senior research analyst at Enders Analysis said.
“In advertising, they have promise in addressing perhaps the single biggest issue of a changing industry: how to accurately attribute value to ads in a complex online media market?”
The report also stresses the benefits to consumers. IDs will mean that people are shown more relevant and less intrusive advertising that is better able to be better tailored and more creatively delivered.
“Yahoo is already enabling these kinds of campaign, with datasets across search, email and social that allow us to accurately match 89% of users across devices,” said Yahoo UK managing director Nigel Clarkson.
“This level of insight benefits consumers as well as brands and advertisers as it helps get the right message in front of the right audience, making it a win for all.”
Littunen continues: “2017 will be the year media owners, advertisers and agencies come to terms with the full significance of audience IDs.”