5 Ways Identity Resolution Can Help Maximize ROAS

When it comes to advertising, there is no rest for the weary. Platforms are constantly changing, privacy updates are wreaking havoc on attribution, costs are rising, and customers are becoming more and more particular about what they want.

Despite these challenges, advertisers are going full force ahead when it comes to spending on paid channels. 

According to Dentsu, digital ad spend is estimated to grow 6.5% in 2024 to total $442.6 billion. That is a lot of advertising dollars!

The thing is, people have to spend money to be seen. Organic visibility is all but gone on social media and when it comes to search, Google is doing everything it can to keep users on the site (Hello SGE).

For advertisers, the question isn’t do I spend money, but how do I make the most of the money I’m spending? How do I ensure that every dollar spent on advertising not only reaches the right eyes but also resonates with them? 

There isn’t a singular answer to this, but instead, a number of answers. 

The one we are going to focus on today – identity resolution.

The Role of Identity Resolution in Paid Advertising

Identity resolution is more than a buzzword in the advertising space; it’s an amazing tool that bridges the gap between anonymous visitor interactions and true customer engagement. 

At its core, identity resolution is about understanding who your customers are, regardless of the platforms they use or the digital footprints they leave. It’s about piecing together slices of user data into a cohesive, comprehensive profile that can be used to deliver a great experience.

Now, when we are talking about identity resolution and ads, it’s important to distinguish between identity resolution at the platform level and identity resolution at the user level.

At the platform level, when it comes to paid advertising platforms like Google, Facebook, LinkedIn, etc., “identity resolution” is already built into everything they do. 

For example, in Google, identity resolution means integrating user signals like Google search history, website visits, clicks, etc. into a singular profile. For Facebook, identity resolution is centered on user interactions (likes, shares, comments, page interactions, etc.).

The thing is, identity resolution at the platform level is limited, and with privacy changes and cookie removal making cross-channel attribution almost impossible, we need something better. 

When we are talking about identity resolution, we are talking true identity resolution at the broader individual level—names, emails, social profiles, demographics, interests, web visits, and so much more. We are talking real customer profiles. 

So let’s jump into how identity resolution works in the ad space and how we can use it to improve performance. 

5 Ways Identity Resolution Can Help Maximize ROAS

1. Enhanced Audience Segmentation

Imagine if every dollar you put into your ads reached exactly the people most likely to buy from you. That’s the dream, right?

That’s also the power of identity resolution when it comes to audience segmentation – it’s not just about reaching more people, but the right people. 

Precision in Segmentation: Why It Matters

Gone are the days when basic audience demographics were enough. Identity resolution takes us several steps further. 

We’re talking about a level of audience segmentation that dives deep into consumer behaviors, interests, psychographics, online footprints, and more. 

For example, instead of targeting a broad category like ‘men aged 30-40’, we can now zoom in on ‘tech-savvy fathers in their 30s who love outdoor sports and are frequent online shoppers’. 

This razor-sharp focus is what makes your ads resonate on a deeper level. 

From Engagement to Conversion: Making Every Interaction Count

With identity resolution, your ads become relevant. Relevant ads mean increased engagement and most importantly, they nudge the audience closer to the ‘buy’ button.

What does this mean for your ROAS? 

Simply put – when your ads talk the talk, performance walks the walk.

Tailoring Your Spend for Maximum Impact

Let’s get real – in marketing, every penny counts. And if you are using identity resolution to fine-tune your audience segments, you’re making the most of those pennies. This targeted approach is not just cost-effective; it’s cost-intelligent.

As you gather data and insights from these targeted campaigns, the road to optimizing ROAS becomes clearer. You’re making informed decisions that pay off, both in the short and long term.

2. Improved Personalization of Ad Campaigns

At this point, personalization isn’t just a buzzword, it’s a must-have in the world of advertising. And with identity resolution, personalization becomes not just easier, but personalization becomes really personalized!  

The Art of Personalization

When you add identity resolution to the mix, you’re not just creating ads, you’re curating experiences. 

Identity resolution allows us to get more details about our customers – their interests, behaviors, likes, and dislikes. Using this information, we can craft ad content that resonates on a more personal level. 

Imagine you’re selling sports gear. With identity resolution, your ads for running shoes find marathon enthusiasts, while your yoga mats end up in front of yoga practitioners. It’s this kind of tailored messaging that makes your audience sit up and take notice. 

Unlocking Audience Engagement

When your audience sees content that aligns with their personal journey, engagement skyrockets. Why? Because personalized content doesn’t feel like an interruption. It feels like it belongs in their feed.

This relevance leads to higher click-through rates, more effective lead generation, and, ultimately, better conversions. In the language of ROAS, that translates to more bang for your buck. 

The Impact on Ad Spend

We all know that it’s not just about reaching people; it’s about reaching the right people at the right time with the right message. 

Identity resolution helps us to do just that. It helps us refine our targeting, reduce ad waste, and focus our budget on the audiences that matter most.

3. Efficient Multi-Channel Marketing

Your audience is everywhere. Should your ads be? Not exactly – being everywhere isn’t enough. 

Success lies in being there in the right place, with the right message. 

This is where identity resolution isn’t just useful, it’s essential. 

Crafting a Cohesive Narrative Across Channels

How many brands have funny TV commercials but boring websites? The answer – the majority.

Mixed messaging creates a huge disconnect. If there is no cohesiveness, the original message that resonated with you is immediately gone. 

Identity resolution helps ensure that you have that cohesive narrative across channels. Whether it’s social media, email, paid ads, or even offline touchpoints, identity resolution helps drive consistency.

For example, if a customer browses your product on your website but doesn’t purchase, identity resolution helps you retarget them with a tailored ad on social media. Then, perhaps, follows up with a personalized email, creating a seamless journey that moves them closer to conversion, each step of the way.

Strategic Placement and Timing: The ROAS Multiplier

Here’s where it gets fun. 

With identity resolution, you can really dig in to understand the best time and place to engage with your audience. Is it the sponsored Instagram post they see first thing in the morning? Or the email they open during their lunch break? Identity resolution gives you these insights.

This strategic placement and timing means that your ad spend is not just efficient; it’s laser-focused. You’re investing in touchpoints that have the highest likelihood of engagement and conversion. This is crucial in boosting your ROAS.

The Unification Advantage

One of the biggest challenges in multi-channel marketing is fragmentation. Different channels, different data sets, different user behaviors. 

Identity resolution is the glue that binds these fragmented pieces into a single, unified view of your customer.

By having a holistic view, you can align your messages, optimize your campaigns, and ensure that every channel is working not just hard, but smart. 

4. Optimized Retargeting Efforts

We’ve talked a lot about retargeting. Actually, we’ve talked a lot about the problems with retargeting (you can check those posts out here and here).

With the reduction of audience size and Google and Facebook pushing advertisers to their AI-based audiences, advertisers are moving their money elsewhere. 

This is where identity resolution can help. 

Bigger Audiences Without Cookies

With identity resolution solutions, you are collecting and creating first-party data. 

With an identity resolution tool like Customers.ai, you can take that first-party data and push it to your remarketing campaigns. The result? Bigger audiences and better targeting. 

Whether you are using custom audiences, Facebook’s Advantage+ audience, or creating lookalike audiences, you are building audiences based on real data and real users. 

Identity resolution tools help you overcome audience shrinkage and get back to the heydays of retargeting. 

Retargeting with Relevance

All retargeting is not created equal. We are not trying to chase after users with a one-size-fits-all message. 

Instead, we want to create tailored messages that speak to their specific interactions and interests. For example, if a user lingers on a page about luxury watches but doesn’t make a purchase, the retargeted ad isn’t just a generic watch ad; it’s an ad about luxury watches, maybe even with a CTA like a limited-time offer.

The more relevant your ad, the better the conversion rate. 

Users are more likely to engage with ads that reflect their past behaviors and preferences. It’s like walking into a store where the salesperson remembers you and knows exactly what you need. That level of personal attention is hard to ignore and even harder not to appreciate.

From Impressions to Conversions

It’s important to remember that it’s not just about getting back in front of your audience. 

It’s about coming back with something better – something that speaks directly to their needs and desires. Identity resolution equips you with that ‘something better.’

By targeting users based on their specific behaviors and history, every dollar spent on retargeting is optimized. It’s not just another impression; it’s a meaningful interaction. And in the world of digital marketing, meaningful interactions are what lead to conversions.

5. Better Measurement and Attribution

We’ve already mentioned the loss of cookies but it’s kind of a big deal. It’s especially a big deal in terms of measurement and attribution.

With cookies, clickIDs, and other identifiable tracking parameters being removed, attribution has become really challenging.

For marketers, we have to understand how our campaigns are performing. 

This is where identity resolution steps in, turning what could be a guessing game into an actual science. 

Decoding the Customer Journey

Let’s break it down. 

With identity resolution, we’re not just tracking clicks and impressions; we’re mapping out the entire customer journey. From the first ad they see to the last click before purchase, every touchpoint is an insight. This holistic view is crucial because it tells us not just what works, but why it works.

Think of it as having a high-resolution map of your customer’s journey. You see where they paused, where they turned back, and where they sprinted ahead. 

This level of detail transforms how we measure the effectiveness of each campaign. No more attributing a sale to the last click just because that’s ‘how we do things’. 

Now, we can understand the role of each channel in the sales process.

Smarter Decisions with Enhanced Analytics

With good data, every decision we make is informed and intentional. We can pinpoint which channels are driving conversions and adjust our ad spend accordingly. 

For example, if we see that social media ads are great at starting the journey but email marketing seals the deal, we can allocate our budget to strengthen these touchpoints. 

Optimizing Ad Spend 

The beauty of improved measurement and attribution is that it takes the guesswork out of ROAS. 

We’re not just hoping for the best, we’re creating campaigns with a clear understanding of their impact. This means our ad spend isn’t just a number – it’s a truly educated decision. 

Identity Resolution is the Future of Ads

The major ad platforms continue to make changes in the name of privacy. That isn’t going to stop.

Each platform is trying to figure out how to make the most money and the only real loser is advertisers.

With identity resolution, advertisers get their power back. 

They get first-party data and the ability to target better than ever, despite platform limitations. 

By understanding who your visitors are, segmenting them, and giving them ads that resonate, you can improve ROAS and improve sales performance.

See how Customers.ai can help you start identifying your visitors today!

Important Next Steps

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