What is cookie syncing?
Cookie syncing is the process of synchronizing cookies across platforms to share information about a single user to re-identify them across all the platforms in the future. This also enables placing the right bids and delivering relevant ads to users.
How does cookie syncing work?
Let’s try to understand cookie-syncing through an example.
Olive visits a website abc.com that uses AdX as its monetization platform.
AdX sets up cookies on Olive's browser to track their information and identifies them with the ID Olive123.
AdX's DSP considers them a new user and creates a new ID, say Olive456.
The DSP bids on the user's (Olive's) impression when the auction takes place.
However, the bid is very low.
Olive’s visits another website xyz.com that also uses AdX.
AdX re-identifies Olive using the ID Olive123.
AdX collaborates with its DSP and they both sync their cookies (Olive123 and Olive456).
The DSP now identifies Olive as the same user who visited abc.com.
The DSP bids higher this time as it knows Olive’s interests.
All this was possible through the process of cookie-syncing between AdX and the DSP.
Benefits of cookie syncing
The concept of cookie syncing helps advertising platforms identify users, their behavior, and their interests. This helps create in:
- Retargeting users
- Excluding converted users
- Detailed targeting such as interest-based or demographics-based