An IP address, shortened for Internet Protocol address, is a unique numerical identifier assigned to a device in a computer network. For a long time, IP have been a critical tool in marketing for identifying devices and tracking user behavior online. By analyzing IP addresses, marketers could gather information about a user's location, and internet service provider, and even infer details about their online habits. This data allows for creating user profiles that help in targeting ads more effectively.
However, the landscape is shifting due to privacy concerns, regulatory changes, and technological advancements like IPv6. The marketing industry is adapting by developing alternative methods to continue delivering personalized and effective advertising while respecting user privacy. Advertisers are preparing for the possibility that IP addresses might soon follow the path of third-party cookies if the latter ever truly disappears.
“The reality is that the third-party cookie is on its last legs, and the IP address will likely be obfuscated,” Anthony Katsur, CEO of the IAB Tech Lab, remarked during a keynote at the TechLab’s annual summit in New York City. “We’re very clearly at the end of the beginning for both signals.”
In the interest of user privacy, companies like Google, Amazon, and Apple have begun limiting access to or obfuscating IP. While the depreciation of third-party cookies has been anticipated for some time, Google has repeatedly delayed the deadline for their removal from Chrome. As the industry prepares for the cookie's phaseout, some ad tech companies have started using IP addresses as a crucial alternative signal.
Alternative IDs, which have emerged in anticipation of the cookie phaseout, utilize various signals, including IP addresses, to link advertisers with users. Some Alt-ID executives argue that the demise of the IP address as a signal is greatly exaggerated.
“Getting rid of IP addresses means rewriting the Internet Protocol, plain and simple,” Mathieu Roche, co-founder and CEO of the identity company ID5, stated in February. He added that such a significant change “isn’t around the corner.” (For what it’s worth, ID5 sponsored the lanyards at the TechLab summit.)
The end of the IP era doesn’t mean the end of personalization. The challenge is to find an efficient and ethical approach.
Adello has never used third-party cookies. Since 2011, Adello has relied on AdCTRL™, a technology focused on user consent and behavior observation to ensure privacy and compliance with laws like GDPR, CCPA, and LGPD.
AdCTRL™ processes data in three main ways:
Content (Publishers): Adello continuously classifies publisher data (mobile sites, apps) to understand the content environment, keywords, and ratings. This helps maintain a content quality index for better targeting, ensuring privacy compliance.
Context (Contextual, Temporal, and Spatial Data): It analyzes the timing and location of ad placements, incorporating data such as weather and type of location (e.g., coffee shop, office building). This helps determine the best situation for ad placement.
Behavior: It tracks human interaction, such as device usage, connection speed, and engagement with content and ads. This real-time data, combined with the other two methods, helps understand user interests and relevance, always with user consent.
Adello’s latest AdCTRL™ generation offers a robust and privacy-preserving targeting framework. The simplified Adello Instant Classification (AIC) uses in-stream data processing to quickly classify users like age, gender, and interests, providing fast and accurate identification without extensive historical data.
The elimination of IP addresses is a step forward to a more ethical, sustainable, and privacy-friendly marketing approach. Embracing the right tools and strategies will enhance competitiveness and foster sustainable digital marketing growth.
