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Why Many Advertisers Miss 30–60% of All Conversions – and Optimize in the Dark

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When N365 delved deeply into its data, it made a discovery that clearly highlights the challenges many advertisers face today. The phasing out of third-party cookies brings enormous optimization risks and consequently significantly deteriorates results.
“When we analyzed all campaigns in our DSP, we could see that as much as a third of all conversions were missing if we relied solely on cookies,” says Pierre Wingren, Head of Programmatic at N365.

The programmatic landscape has changed tremendously and continues to evolve at a rapid pace. There are numerous updates, and it can be difficult to keep up. One thing that few have missed is the threatened existence of third-party cookies. Apple and Firefox have long defaulted to block them, and Google Chrome is following suit. This affects frequency capping, audience targeting, and measurement—essentially, everything that constitutes the cornerstone of a successful programmatic campaign.

Pierre Wingren, Head of Programmatic

Pierre Wingren, Head of Programmatic

Since its inception, N365 has focused on delivering results to its clients, and this approach permeates all programmatic campaigns—whether traditional display, native, or video.

“In our daily work, we optimize on all conceivable parameters, and that’s what makes our campaigns so successful. But if we have no data to optimize, we encounter significant problems,” says Pierre Wingren.

The solution for N365 became their close partnership with Adform and the adtech company’s unique solution, ID Fusion.

“Increased media efficiency through optimized frequency capping and increased reach should be at the top of every advertiser’s agenda. Our ID Fusion solution navigates seamlessly between encrypted first-party IDs, enabling high precision and a high level of privacy protection and data security,” says Ellinor Axell, Sweden Manager at Adform.

Technologies like the one developed by Adform will become a crucial parameter for both agencies and in-house departments.

“We see this technology as a must for media buyers looking to secure reach and attribution for the share of traffic that cannot be identified via a third-party cookie, which accounts for up to 60% of digital traffic. It’s time for advertisers to realize that the old cookie technology is dead and that it’s high time to invest in future-proof technology and media strategies,” says Ellinor Axell.

When N365 recently conducted an analysis of all its campaigns, the effect was clear. All conversion points at the bottom of the funnel were analyzed – such as purchases, deposits, booked trips, and submitted forms – and the results were striking. A whopping 32.5% of all conversions were missing without ID Fusion. Instead of 103,536, only 69,866 were visible.

“This is, of course, absolutely crucial for what we do and represents impressive numbers. Even if the conversions would have benefited our clients even without ID Fusion, it would have complicated our work and ultimately resulted in poorer outcomes,” says Pierre Wingren.

👉 Psst, check out how we at N365 helped Airtours increase their conversion rate by 557 percent.

As N365 adjusts bid levels daily in various ad exchanges, domains, geographical areas, ads, and formats, it requires good insight to prevent the optimization effect from being reversed.

“Imagine that all conversions from Safari are missing in your DSP or reporting tool. How do you then know that the data you’re taking action on is reliable? And above all, according to our statistics, you’re missing about 30% of all conversions. It’s self-evident that our decisions become sharper and more secure,” says Pierre Wingren.

Even though the primary focus is on customers’ most critical conversion points, ID Fusion also assists in daily work by providing better opportunities for frequency capping and actual insights into the bidstream when the third-party cookie is missing. Adform’s next step is to strengthen the platform’s CPA algorithm with ID Fusion to automatically optimize towards conversions based on first-party IDs.

“This is yet another important step, and we look forward to delivering fantastic campaigns for our clients even when the third-party cookie has checked into the Internet Museum,” says Pierre Wingren.

💡 Would you like to know more about ID Fusion or need assistance with your programmatic campaigns? Get in touch using the form below, and one of our programmatic experts will get back to you. 👇

The post Why Many Advertisers Miss 30–60% of All Conversions – and Optimize in the Dark appeared first on N365 Group.


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