Frequently Asked Questions

1. What is addressability in digital advertising?

Addressability refers to the ability to target specific audiences with tailored messages based on data signals, such as geolocation, audience behavior, or interests. It allows advertisers to send personalized messages to the right users at the right time across digital platforms and improve engagement with relevant messages.

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2. Why is addressability important?

Addressability allows marketers to optimize their campaigns by understanding what works well for specific audiences. It helps reduce media waste by focusing on audiences more likely to engage with their message, making the advertising process more efficient.

 

3. How does privacy affect addressability?

Privacy is critical in determining how data can be collected, processed, and used in advertising. New regulations, like GDPR, emphasize user consent and privacy protection, leading to shifts in how addressability functions, especially in the context of sensitive data.

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4. What are cookies and how do they relate to addressability?

Cookies are small files stored on a user's device that contain a "match key" (identifier) used to track online behavior and help advertisers deliver personalized content. Addressability relies on these match keys for targeted ads, but with increasing restrictions from companies like Apple and Google, advertisers must explore alternative solutions. As third-party cookies are phased out, new methods such as hashed emails, device IDs, and data clean rooms are becoming more common to maintain addressability while ensuring compliance with privacy regulations.

5. What are match keys and why are they important?

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Match keys are identifiers used to deliver messages to specific audiences. They act like an address on an envelope, helping advertisers focus on the right audience by linking certain data attributes (like interests or demographics) to those identifiers. Common match keys include email addresses, cookies, and device IDs.

 

6. How will the phase-out of third-party cookies affect advertising?

The phase-out of third-party cookies, even though ignored by Google, will push marketers to adopt alternative methods of addressability, such as first-party data, geolocation, and contextual targeting, to maintain ad effectiveness while respecting privacy. This is important especially in Canada where approx. 60% of the population uses an Apple device.

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7. What is the difference between first-party and third-party data in addressability?

First-party data is information collected directly from users by the company they interact with (e.g., visiting a website or signing up for a newsletter). Third-party data is gathered by external entities that track users across multiple websites. Privacy risks and regulations are higher for third-party data, leading to increased reliance on first-party data.

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8. How does geolocation data impact addressability?

Geolocation data allows advertisers to target users based on their physical location or visit patterns. This information is particularly valuable for local businesses, retail brands, or event-driven marketing. Points of interest (POI), such as stores or landmarks, are used to identify non-sensitive data that can improve ad relevance without violating privacy laws.

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9. Can geolocation data still be used for targeting?

Yes, geolocation data can still be used for targeting, but with certain restrictions to ensure privacy. For example, nonsensitive locations (like a coffee shop) can be used for targeting, while sensitive locations (like places of worship) may be excluded to protect user privacy.

10. Is using geolocation data legal and privacy-compliant?

Yes, geolocation data is legal to use, but advertisers must ensure it is privacy-compliant by adhering to regulations in place, such as Canada's PIPEDA or the U.S.’s CCPA. Sensitive locations, such as places of worship or healthcare facilities, must be excluded from targeting to avoid privacy violations.

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11. How is Google’s reversal on third-party cookies impacting the future of addressability?

Google’s reversal has delayed the phasing out of third-party cookies, giving advertisers more time to prepare for a future where cookies may no longer be used. However, the industry is moving toward cookie-less solutions like first-party data, contextual targeting, and the use of geolocation and device identifiers.

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12. What are the common misconceptions about addressability and privacy risks?

A major misconception is that privacy risks are associated with third-party cookies alone. However, the risk is tied to the type of data being collected and its sensitivity. For example, geolocation data from a public park may not be considered sensitive, while data from a healthcare provider might be.

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13. What is meant by sensitive and nonsensitive data in advertising?

Sensitive data refers to information that can reveal personal details like health status, religion, or sexual orientation. Non-sensitive data includes general preferences like interest in sports or visiting a nonsensitive location. Sensitive data requires higher levels of consent and protection.

14. How can sensitive data be safeguarded in advertising?

Sensitive data (such as health or religious information) must be safeguarded with privacy protections. Techniques like consent management, data minimization, and anonymizing sensitive attributes are commonly used to reduce risks. Advertisers can also limit geolocation precision to broader points of interest (e.g., Starbucks vs. a hospital).

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15. What is a data clean room, and how does it help with privacy?

A data clean room is a secure environment where two parties can combine datasets without sharing personally identifiable information (PII). This allows for insights and analysis without exposing individual-level data, which is particularly useful for collaboration between brands while remaining compliant with privacy laws.

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16. How do Data Management Platforms (DMPs), Customer Data Platforms (CDPs), and Data Clean Rooms differ?

DMPs manage large amounts of digital data, focusing on online match keys without personal identification.
CDPs handle identity-linked data about existing customers, such as their addresses or purchasing history.
Data Clean Rooms allow businesses to collaborate by sharing data in a privacy-safe way, using neutral third-party platforms to provide insights without directly exchanging personal data.

17. How do first-party data and contextual targeting help replace cookies?

Contextual targeting, which focuses on delivering ads based on the content of a webpage (like showing a sports ad on a sports website), is useful but does not fully replace cookies, as cookies allow for more personalized and precise targeting. However, with the phasing out of third-party cookies, contextual targeting and first-party data (collected directly by a company) are becoming more important for maintaining addressability. These methods provide effective targeting without relying on third-party identifiers, helping to improve ad relevance while ensuring user privacy.

18. How can advertisers ensure privacy compliance in campaigns using audience data?

Advertisers must ensure user opt-in, especially for sensitive data. Consent must be meaningfully informed, and privacy policies should clearly communicate what data is being collected and how it is used. Regular audits and alignment with legal standards such as GDPR and CCPA are also crucial.

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19. What role does consent play in data-driven advertising?

Consent is essential, especially for collecting and using sensitive data. Consumers must be informed about how their data will be used, and companies need to ensure they have obtained consent before processing personal information.

20. How does real-time feedback improve advertising?

Real-time feedback allows marketers to quickly learn what works in their campaigns and make adjustments. Faster feedback reduces wasted spend on ineffective ads, helping advertisers optimize their strategy.

21. Are certain industries more affected by privacy and addressability regulations?

Industries that deal with sensitive information, like healthcare and finance, are more affected by privacy regulations. However, all industries must comply with data protection laws, but sectors like retail or entertainment may face fewer challenges with nonsensitive data.

22. What’s the role of feedback loops in improving addressability?

Feedback loops allow advertisers to measure the performance of their campaigns in real time and make data-driven optimizations. This includes refining targeting, adjusting budgets, and improving creatives to increase ROI. Real-time data helps reduce media waste and improves campaign effectiveness.

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23. Can addressability be used across all media platforms?

Not all media is addressable. For example, terrestrial radio does not use identifiers like digital platforms, though geo-targeting can still be used. Digital media, such as mobile and desktop, use more advanced targeting techniques like geolocation, audience data, and match keys for addressability.

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24. What are hashed emails, and how do they fit into addressability?

Hashed emails are a privacy-compliant way to connect user data across different platforms. By converting email addresses into encrypted strings, advertisers can match users across devices without directly exposing their personal information. However, hashed emails are not always effective for view-through attribution in non-authenticated environments. Many people don't sign in or authenticate on every property they go to. So even if you're signed in on a purchase, where you authenticate to get an item shipped to your house, oftentimes, the view the ad exposure was in a non authenticated environment.

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25. How can advertisers use real-time measurement for better optimization?

Real-time measurement allows advertisers to quickly see which audiences, creatives, and platforms are delivering the best results. This helps marketers optimize on the fly, shifting budgets and strategies toward what is working and away from underperforming elements, reducing media waste and increasing ROI.