Ad technology insights turned inside out.

Thursday, March 24, 2011

“Pixel-less” integrations are the unicorn of data management



In a marketplace where data management companies add new features to the pitch every day, it can be difficult, even confusing, for a publisher to keep track of the new bells and whistles in the DMP space.

Understanding that this marketplace is already tough to navigate, I find this new messaging I’m hearing confusing. I’m referring to a magic trick called “pixel-less” or “pixel-free” data management. I’ll be blunt here — full-blown, pixel-free data management is not possible. When you hear this from a data company, ask them, “What’s the first step after signing up?” The answer will be that they need to pixel your site.

Why is pixel-less data management not possible?

For data to transfer from one domain (the publisher’s) to another domain (the advertiser’s server or media outlet), it needs a pixel for the receiving server to identify the user. Even with server-to-server data transfer on a user’s profile information, there still needs to be at least one pixel fired from the receiving server to identify the user and drop a cookie. There needs to be at least one pixel per transfer.

Unless the publisher’s site, their data management platform and ALL of the media is served under the same domain, pixel free data management is impossible. This is actually a good thing, as it creates real scarcity in the data market. If pixels weren’t needed, then data inventory would never have a bottom. Publishers limit the amount of pixels fired on their site like they do ad space, and we currently have a real bottom to the market.

But why are data companies saying this?

Every data company is integrating “server-to-server” data transfer with DSPs, SSPs and other media outlets to reduce the number of pixels being fired, but they cannot eliminate it completely to honestly call it “pixel-less.” Reducing number of pixels fired is accomplished by transferring user profile data from the data company into the media outlet’s server. However, the receiving media outlet must be able to drop a cookie on those specific users in order to know who they are. This is done by firing a pixel. Something needs to be served at some point. Even content or a banner serves a pixel that can be used to transfer data.

When would pixel free be a reality?

If Google was a total monopoly, it could possibly tie in Google Analytics tags to fire the script for keyword targeting into DART ad tags. But it’s not a monopoly. What if a DART publisher is selling ad space into Yahoo’s network or a DSP? The data won’t be there for an advertiser to target unless it is moved there via a pixel fire at some point.

Another way it would be possible is by matching the user through personally identifiable information. So if a data management company says they are doing pixel free integration, ask them if this is how they are matching the data to the user.