How Identity Resolution Reduces Ad Waste & Improves ROAS

Bad Identity Data Is Costing You More Than You Realize

Marketers invest heavily in paid media, but without identity resolution, ad budgets are leaking money due to:

๐Ÿšฉ Duplicate records leading to redundant targeting
๐Ÿšฉ Retargeting customers who have already converted
๐Ÿšฉ Misattributed conversions, making campaign optimization difficult
๐Ÿšฉ Poor audience segmentation, reducing relevance and engagement

Identity resolution fixes these issues by unifying customer data, ensuring ads reach the right people at the right timeโ€”maximizing return on ad spend (ROAS).

1. Why Ad Waste Happens Without Identity Resolution

Most ad platforms rely on cookies, email hashes, and device IDs to track users. But when identity data is fragmented or inaccurate, businesses:

  • Target the same person multiple times, inflating customer acquisition costs (CAC).
  • Fail to recognize existing customers, leading to wasted retargeting.
  • Struggle to attribute ad success, making campaign optimization guesswork.

Example: Ad Waste Without Identity Resolution

Without identity resolution:

  • A user clicks a Facebook ad but doesnโ€™t convert.
  • Later, they sign up for a demo using a different email.
  • A week later, they make a purchase on desktop.
  • The system treats these actions as three different users.

๐Ÿšฉ Marketing keeps retargeting the user with conversion ads, wasting budget.
๐Ÿšฉ The conversion is misattributed to an organic channel instead of paid media.
๐Ÿšฉ Campaign performance looks worse than it actually is.

Example: Efficient Ad Spend With Identity Resolution

โœ” All interactions are merged into one customer profile.
โœ” The system stops retargeting ads after conversion.
โœ” Attribution correctly credits the Facebook ad for the purchase.
โœ” Marketers can optimize campaigns based on real, unified data.

2. How Identity Resolution Optimizes Paid Media & Retargeting

1. Eliminates Redundant Ad Targeting

โœ” Prevents businesses from serving ads to customers who already converted.
โœ” Ensures lookalike audiences are built from clean, de-duplicated data.
โœ” Stops marketing platforms from treating the same user as multiple prospects.

2. Improves Audience Segmentation & Ad Relevance

โœ” Ensures audiences are based on real customer behavior, not disconnected sessions.
โœ” Helps businesses separate high-intent vs. low-intent prospects.
โœ” Enables smarter personalization by linking past engagement history.

3. Fixes Attribution Issues for Better Budget Allocation

โœ” Accurately tracks which ads and channels are driving revenue.
โœ” Ensures conversions arenโ€™t misattributed to organic or direct traffic.
โœ” Helps marketers double down on high-performing ad strategies.

4. Maximizes First-Party Data for Cookieless Targeting

โœ” Reduces reliance on third-party cookies by using first-party identity resolution.
โœ” Ensures brands can continue ad targeting even as cookies disappear.
โœ” Builds better customer insights without violating privacy laws.

3. The Business Impact of Identity Resolution on ROAS

๐Ÿš€ Lower Customer Acquisition Costs (CAC) โ€“ No wasted spend on duplicate targeting.

๐Ÿš€ Higher Conversion Rates โ€“ Ads reach real, high-intent prospects instead of misidentified users.

๐Ÿš€ Better Attribution & Budget Optimization โ€“ Marketing teams know which campaigns actually drive revenue.

๐Ÿš€ Future-Proofed Paid Media Strategy โ€“ Identity resolution ensures effective targeting even without third-party cookies.

4. What Happens If You Donโ€™t Fix Identity Resolution in Ad Campaigns?

๐Ÿšฉ Marketing budgets are wasted on redundant targeting.
๐Ÿšฉ Retargeting campaigns annoy customers who already converted.
๐Ÿšฉ Campaign reports misattribute conversions, leading to poor optimization.
๐Ÿšฉ Competitors with better identity resolution outperform you in ad efficiency.

5. The Future of Ad Targeting & Identity Resolution

๐Ÿ”ฎ AI-powered identity resolution will enable real-time audience segmentation and ad suppression.
๐Ÿ”ฎ Businesses will shift toward first-party identity strategies to replace cookie-based targeting.
๐Ÿ”ฎ Smart identity resolution will drive higher ROAS by reducing ad waste at scale.

Want to See Identity Resolution in Action?

If your paid media strategy is wasting budget on duplicate targeting, misattributed conversions, or poor segmentation, identity resolution is the fix.

View the Identity Resolution Slide Deck to see how it works. If youโ€™re ready to start using identity resolution the right way, you can purchase it here.

ยฉ Longcut. All Rights Reserved.

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