Seller Defined Audiences: The Future of Targeted Ads

February 1, 2023

The cookieless future is now.  The entire ecosystem dedicated time in 2022 to testing, building, and analyzing alternative user identifiers, including Adapex and our partners.  Seller Defined Audiences are emerging as an effective and privacy-compliant replacement to the cookie.

What is a Seller Defined Audience (SDA)?

The IAB Tech Lab‘s SDA allows companies to use first-party data responsibly with no risk of data leakage or reliance on out-of-date identification methods. Publishers or their data partners determine a user’s attributes based on their interactions on the publisher’s website and then categorize them into a standardized Audience Taxonomy. This information is then relayed via OpenRTB to buyers.

Seller Defined Audiences are a way for advertisers to target specific groups of users on digital platforms. These audience segments are defined by the publisher and can be based on a variety of criteria, such as demographics, interests, purchase intent, or behavior.

IAB Project Rearc Guidelines and Standards for SDAs

IAB has developed guidelines and best practices for Seller Defined Audiences to help ensure that they are used in an ethical and transparent way. These guidelines cover topics like data privacy, data security, and consumer choice, and are intended to make sure that Seller Defined Audiences are respectful of users’ rights and preferences.

SDA core segments

The IAB has also developed a set of technical standards for SDAs, which outline the technical requirements and specifications to follow when creating and using Seller Defined Audiences. These standards are designed to ensure that SDAs are compatible with the various digital platforms where they are used. And to help ensure that they are delivered to the right users in an efficient and effective way.

Benefits of Using Seller-Defined Audiences for Advertisers: Precise Targeting and Improved ROI

One of the main benefits of Seller Defined Audiences is that they allow advertisers to target their ads more precisely, and at scale. Using the SDA, advertisers can reach users who are more likely to be interested in their products or services. This can lead to higher conversion rates and a better return on investment. With the SDA, advertisers can create highly targeted campaigns that are more likely to reach the right users and drive conversions.

Benefits to Publishers: Increased Revenue and Better User Experience

While a data strategy that includes SDAs presents benefits to all constituents, there are several key benefits to publishers:

  • Increased Revenue
  • Advertisers will pay a premium to reach these highly targeted segments
  • Better User Experience
  • Publishers can deliver more relevant and targeted ads to their users, leading to a better user experience
  • Improved Engagement
  • Targeted ads are more likely to be clicked on and engaged with by users, which can increase both traffic and revenue
  • Greater Control
  • Publishers can ensure that ads are relevant and appropriate for their users, which can help build trust and credibility with their audience
  • Enhanced Data
  • Privacy-compliant, first-party data gives publishers valuable insights into their audience demographics, interests, and behavior. 

Optimizing Advertising with Seller Defined Audiences

In conclusion, Seller Defined Audiences (SDAs) are a game-changer for publishers looking to optimize their advertising revenue. By allowing publishers to define their own target audience and deliver more relevant and targeted ads, SDAs can lead to higher conversion rates and increased revenue. Plus, with the added benefits of a better user experience, improved engagement, and greater control and enhanced data on their audience, it’s clear that SDAs are a win-win for publishers. 

We’ll have a lot more to share about this over the course of the year. In the meantime, we’d be happy to show you how we are working with our partners. And how we are advancing the next generation of privacy-compliant advertising solutions to drive revenue for publishers. 

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