The Identity and 3rd party cookie commotion has reached a critical point in Europe - and recent announcements from Google (and the ensuing industry chatter) have created an atmosphere of fear and confusion within the programmatic ecosystem. It's time to clear up the confusion and move forward. This webinar aims to: • Provide context and clarity to the confusion • Highlight the key areas of focus • Show publishers the collaborative path forward - timelines and actionable steps

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CONFIDENTIAL | © MAGNITE
Taking Action on
Identity in Europe
21 April 2021

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→ Email-based identity systems are not impacted:
Unified ID 2.0, Liveramp’s ATS
→ They are also just part of a more comprehensive solution
→ Yes, there is a comprehensive solution. It’s made up of:
> Logged in users
> Publisher-driven audience segments
> Browser-based auctions
→ Google not testing FLoCs in Europe
Clearing a Few Things Up

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Confidential | @ Magnite 4
Today’s goals
Quell any fears and confusion
Provide our community with clarity
on what is changing
Demonstrate the actionable path
forward

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Confidential | @ Magnite 5
Today’s agenda
First Party Segments: Audiences in Action
Garrett McGrath, VP Product Management at Magnite
Taking Action on Identity
Tom Kershaw, CTO at Magnite
Audience Q&A with Tom and Garrett
Moderated by Rebecca Ackers, Seller Lead UK & Nordics at Magnite
Consortium feedback with Axel Springer
Robert Blanck, General Manager Advertising & E-Commerce at Axel Springer

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Confidential | @ Magnite
First Party
Segments:
Audiences in
Action

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Confidential | @ Magnite 7
Restating the Obvious
Third-party cookies and all primary identifiers are officially
expected to end in January 2022.
The industry needs a new identity regime.
We are at a crossroads: try to preserve the existing system,
or invent a new one.

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Confidential | @ Magnite
Summary:
Publishers Take Control
→ The new identity regime will be
based on audience segments
created by publisher first-party
data and sell-side platforms
→ The biggest issue with the first
party model is scale
→ Magnite has the scale and reach
to provide audience segments

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The New Identity Framework
Privacy Sandbox
Publisher
First-Party Segments
Logged-In
Users
→ Users log in and this information is used to
create a persistent ID
→ Coverage: Low (20-25%)
→ Accuracy: High (same as current this party
cookie system)
→ Publishers use first party identifiers to identify
user interests, and federate this interest data
amongst many publishers to achieve scale
→ Coverage: High (60-70% of Internet)
→ Accuracy: High (below current system
because not directly linked to buyer data)
→ Browser does everything, Including
segments and auctions
→ Coverage: High (60-70% of Internet)
→ Accuracy: Low (estimate 50-70% drop
off compared to current system)

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The Way It Works Now
Exchange
Segments
Segments
Segments
Segments
Offline
CRM Data
Buyer
User Sync
Publisher
Pages
Publisher
Pages
Publisher
Pages
111.11.
111.1
IDFA
111.11.
111.1
IDFA

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The Way It Works Now
Exchange
Segments
Segments
Segments
Segments
Offline
CRM Data
Buyer
User Sync
Publisher
Pages
Publisher
Pages
Publisher
Pages
111.11.
111.1
IDFA
111.11.
111.1
IDFA

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The Way It Works Tomorrow
Exchange
Segments
Segments
Segments
Buyer
Publisher
Pages
Publisher
Pages
Publisher
Pages
pub.com/
1234
pub.com/
1234
Deal ID
1234
Segment ID
1234

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Confidential | @ Magnite 13
Publishers Understanding
Value in Their Data
Publishers spend millions
acquiring customers
Buyers demand IDs in order
to find their audiences
Giving IDs to buyers allows
buyers to graph that data and use for
other purposes
Device Graphs map users across
multiple publishers, and buyers use
that information for all publishers
Sellers are increasingly sensitive
about this data; they want to keep it,
control it, and use it to their own benefit
We will help them do this

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Confidential | @ Magnite
Taking Action
on Identity

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The Three Pillars in Europe
Logged-In
Users
Publisher-Defined
Audiences
FLOC/
Turtledove

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Publisher Defined Segments:
Coverage & Accuracy
Publishers capture ample user information, and this is
not going away with identity changes
Publishers place first party cookies to develop and target their
content to what users want to see
Extending this data to understand interests and intent will enable
interest-based advertising in the future
Publishers own the user relationship; not browsers or mobile
operating systems

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First Party Segments Already Exist
Segment Name Description Average Bid CPM Average Rev CPM
Life Events - New Parent Life Events 1.166311756 1.118528787
Holiday Shopping
Christmas, Thanksgiving, Kwanzaa,
Hanukkah & Shopping or Purchase
Intent
1.024136646 0.9799326723
Affluent Professionals – Multiple Affluent Professionals 1.198276886 1.149960288
Frequent Business Travelers
Frequent Business
Travelers-Extended
1.071211881 1.02509378
International Traveler International Traveler-Extended 1.07418734 1.028039037
Hospitality Hospitality-Extended 1.147013937 1.099270922
ARM Pets Dog Owners Pets Dog Owners-Extended 1.122701183 1.076504638
Legal Professionals Legal Professionals-Extended 1.1012074 1.054492716
Healthcare Professionals
Healthcare Professionals RG
Programmatic All Profile
1.13440105 1.085926183

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Develop a coordinated,
standardized system for
publishers to create
audience segments,
federate those segments
with other publishers, and
measure the results
NEED
CONTEXT
Publisher-defined
audiences have existed for a
long time, but:
→ Uncoordinated
→ Non-standardized
→ Transacted as Deals or
Key Values
Result:
Buyers can’t find scale
SOLUTION
We created a
cross-functional group of
industry thought-leaders to
build a scalable First Party
Segments System
Making First Party Segments a Reality

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The Steering Committee: January 2021

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Confidential | @ Magnite 20
6 Principles of the Project
Everything is to be built on open source
standards: everything will be done in the
public domain and shared openly
Membership is open, but we will limit
the committee size to ensure
maximum velocity
All systems must be vendor agnostic:
nothing can require a specific
technology or platform
Buyers and sellers need to be
equally represented
No formal structure or governance
Bring What You Can: there is no such
thing as bad participation

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What’s To Come
Live now
→ Approx. 10 publishers are sending
live segments to about 5 DSPs
through 2 SSPs
→ Buyer budgets start flowing
→ Expanding to full publisher set
and all SSPs
May
→ Results reporting
→ White paper released
Phase Two: 1 June
→ Production at scale:
ongoing, but by Sept 2021

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Three Working Groups Were Created
Taxonomy:
Define the audience
segments we would use,
pick the phase one targets,
and build a methodology for
standardizing how the
segments are created and
signalled
Test Design:
Build the RTB plumbing to
capture audience segments
and transmit them to SSPs,
DSPs and end buyers so
they can transact on them.
Also build an A/B test
framework to compare the
results to the existing
systems
Attribution:
Build a feedback loop to
allow buyers to measure the
results of each impression
and direct spend to the
most performant segments
and publishers

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Taxonomy: Phase One Decisions
Decision:
Publishers can assemble segments however they see fit; based on the results we
will establish guidelines/best practices and a signalling system for phase two
Standardized on
IAB segments but
allow for
extensions if
necessary
Selected 20 phase
one segments
(automotive, travel,
home economics,
etc)
Started with a set of guidelines on how
publishers assembled segments
→ Three visits in the last 30 days, etc
→ The guidelines were dropped from
phase one because difference
segments have different
requirements

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Publishers
→ Can send segment information to SSPs
in either of two ways:
→ Key value pairs denoting the IAB
segment integers
→ SharedID/FPCs that can be used by
SSP to create the segment labels
→ Most publishers are using KV to start as
SharedID is still being deployed
SSPs
→ Can signal the segments to the
buyers in two ways:
> DealIDs
> RTB Segments (as RTB data objects)
→ Most participants are using DealIDs to
start because every DSP can read them
Test Design Phase One Decisions
All transactions will be without identifiers:
cookies removed entirely and bid requests duplicated
No IDs are sent to the buyer

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The Role of Federation
Age Groups, Luxury obsessed
groups, Sports Section Readers
Income Groups, Stock Investors,
People from Large Cities
Gender/Age Groups,
People Who Go to Ibiza
Ways to Federate:
Bilaterally — Via DMP — Via SSP —
Via “Gatekeeper” — or not at all!
Deal IDs Segment ID
Auto-Intenders Sports Enthusiasts Record Buyers

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Publisher Federation
Problem:
Individual Publishers
Can’t Reach the
Required Scale on
Most Audience
Segments
Solution:
Federation with
Other Publishers
1
Publisher Assigns a
SharedID (or first-
party cookie) and
attaches as many
RTB segments to
that user as it can
SharedID is
sent to the
SSP along with
segment data
SSP logs the user id
and segments and
uses them to create
meta-segments
amongst the
participating
publishers
No cross site
targeting; we model
the available
segments and
optimize the
groupings
2 3 4
SSP
Publisher
Segments
Segments
Segments
Segments
Meta-segment
Publisher
Meta-segment
Meta-segment
Publisher
Meta-segment
Meta-segment
Publisher
Meta-segment

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Federation: Magnite’s View
Offline Interest Data
SharedID Age Demo Household Income Cars
123456 47 M Y 3 0
14567 34 M N 6 1
32456 23 F Y 9 2
Magnite Log Files
IP Address SharedID Time Stamp
111.11.111 123456 12:01
112.12.1212 14567 12:01
143.67.897 32456 12:01
Magnite CTV / Magnite DV+
DSP DSP
DSP
Bid Request:
Auto Intender
Bid Request:
Grandmother
Bid Request:
Purple Shoes

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Attribution: Phase One Decisions
→ Cookies will be eliminated and fingerprinting not allowed
→ Render pixels will still be used in order to allow accurate A/B
measurement to compare with normal cookied requests
→ Long term system will be supported in Phase 1 but not required:
> Buyer sends campaign id and tx id for every request
> Publisher sends SharedID to SSP
> SSP does not transmit SharedID to DSP—it is redacted
> SSP creates exposure reports with ids/campaign ids and
transaction logs to build an aggregated performance report
> Performance data shared with buyers via API in near real time

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Daily Push Reports on Performance

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Buyers Can Curate and Control the New
Segments
Publisher first-
party data pushed
to Magnite
Working to standardize
segment transmission
directly to each buyer
Adding new
functionality to
automatically generate
deal classifications
from publisher data
Dozens of segments
can be created
Publishers create
segments and
load that data into
any Deal ID

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Phase Two: Key Elements
Expand eligible segments to 500+
Add Reach curve and Demographic segments (optional)
Require first party id sent to SSP but not transmitted to buyers
Build full reporting API with enhanced performance signals
Support Frequency capping
Require RTB segments so the system can transact in open
market (not just deals)
Provide signaling on segment composition
Other suggestions still rolling in...

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Materials Are
Publicly Available

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How You Take Action
THE PROBLEM
Third party cookies and MAIDs
are going away but we have a
scaled and proven solution in
publisher defined segments.
THE SOLUTION
A multi-disciplinary working
group is defining standards for
this and rolling it out at scale.
This is effort is OPEN to
everyone.
This effort is CRITICAL to the
success of the open web.
WHAT YOU CAN DO NOW
Join the European working
group to accelerate adoption in
Europe and to build to European
requirements.
Contact your Magnite Account
Manager to learn how.
We are here to help you.

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Audience Q&A

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Confidential | @ Magnite 35
Robert Blanck
General Manager Advertising
& E-Commerce
Axel Springer
Consortium Feedback with Axel Springer
Tom Kershaw
CTO
Magnite

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Confidential | @ Magnite 36
Thank you!
identity-emea@magnite.com