Home Mobile Will Phone Numbers Start To Blow Up As The Next Big Identifier?

Will Phone Numbers Start To Blow Up As The Next Big Identifier?

SHARE:

Some tech providers are looking to phone numbers as the cookie killer – but privacy and user reticence are potential roadblocks.

Digits, however, are a tantalizingly sticky bridge between online and offline, said Guy Weismantel, EVP and CMO of call analytics company Marchex.

“It’s extremely hard to prove ROI when someone goes offline and you lose them from a cookie perspective,” Weismantel said. “That’s why the phone number becomes an interesting proxy.”

For one, phone numbers have a level of permanence that trumps cookies, device IDs and even email addresses.

Although identifiers like IDFA on iOS and the Android ad ID last longer than cookies, they need to be refreshed when users either reset their advertising settings or buy a new phone. And while consumers often use email to login across devices, they generally have more than one email address.

“People change jobs, they have multiple personal accounts, they have one where all the spam and offers go – and that’s not a very targeted environment for a marketer,” said Weismantel, noting that even when consumers change carriers, they generally port their phone number to their new provider.

And as the mobile phone becomes the primary hub of communication, people are even less likely to change their number, said Mark Sullivan, director of demand generation at call tracking platform CallRail.

Phone numbers also present an opportunity to get closer to people-based rather than cookie-based attribution, Sullivan said. If a user sees an ad for an auto dealership and clicks to call and set up a test drive and actually shows up, that’s trackable if the user has location services turned on.

But scale is a question.

Until there’s a critical mass of data tied to phone numbers, it’s unlikely they’ll take off as an identifier that’s equal to or more important than an email address, despite their longevity, said Anneka Gupta, chief product officer at LiveRamp.

“Brands, platforms and apps would have to start collecting phone numbers from their users almost as a default,” Gupta said.

Some publishers are moving in that direction. Apps like Snapchat, Musical.ly and Kik all give users the option to sign in with a phone number.

But email is still where it’s at from a collection point of view, Gupta said. Brands have already invested a lot of time and effort into their email programs.

“Marketers already have a large number of email addresses,” Gupta said. “So, the question becomes, should they double down on email or add phone numbers to the mix?”

Brands need to present a clearer value exchange before consumers cough up their phone number. The average person is sensitive about sharing that type of information, Gupta said.

“It comes down to notice and choice and opt-out mechanisms,” she said. “There are lots of ways to opt out of an email address being used to identify someone, but I don’t know of any easy general ways to opt out based on phone number.”

Take Facebook’s WhatsApp, which has access to phone numbers but got into hot water in the EU for linking them with identities on Facebook. Facing a fine over the matter, Facebook allegedly told the European Commission there was no reliable way to automatically create matches between user accounts across services, which didn’t turn out the be the case.

Admittedly, WhatsApp users can opt out of sharing their account information with Facebook proactively, although they have to know to do it.

But privacy concerns aside, identity isn’t about one identifier winning out over another, said Brian Andersen, a partner at LUMA Partners.

“It’s not either/or – it’s yes,” Andersen said. “The emergence of identity as a strategic capability in the market is immense. Identity solutions are going to use every piece of identity they can use in a privacy-compliant way in order to optimize the customer experience.”

Because identity is an amalgam, Gupta said.

“A person can have multiple identifiers and you really need to know all of them to get a complete picture of the consumer, because all identifiers play a role in understanding identity,” she said. “At the end of the day, the permanent ID should really be the person themselves and some associated identifier that goes along with that person.”

Tagged in:

Must Read

Apple Has Far-Reaching Plans To Block Hundreds Of Programmatic Data Companies From iOS

Apple’s WebKit crackdown appears to extend well beyond The Trade Desk, putting hundreds of ad tech, data and identity vendors on a mysterious, dynamically updated block list.

Josh Reed, Zoom's VP of brand and content, speaking at AdExchanger's Programmatic IO event in New York City (September 28, 2006)

Zoom’s Marketing Challenge Is That It’s Too Well Known For Its Own Good

Zoom has 99% unaided brand awareness, which sounds great on paper. But there’s a catch: Most people still think it’s just a video-call app.

Why Agencies Think They Shouldn’t Own Agentic AI Tools Or The Data Used To Build Them

Agencies are differentiating their tech stacks by building custom agentic AI tools for their clients. And they’re rethinking owning those AI tools – particularly since licensing them creates new revenue streams.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Programmatic IO: Insurers Are Building Ad Tech’s AI Accountability Layer

Agencies and marketers discussed the future of AI governance at AdExchanger’s Programmatic IO NYC this week. The main takeaway? Expect insurers to play an increasingly important role in managing AI compliance.

Apple’s Latest Operating System Blocks The Trade Desk From Serving Ads On Safari

The Trade Desk is unable to serve ads to the Safari browser for Apple device owners that have downloaded iOS 27. Apple has been investigating the issue since last week.

Who Will Stand Up For The Open Web?

The open web is done, stick a fork in it. Banner blindness is near universal, search traffic has run dry and publishers are struggling for oxygen. But what if that’s … not true?