Programmatic Advertising Resources - Next Millennium Media

What Is Identity Resolution? How It Works

Written by Denelle Williams | 09/04/2025

What Is Identity Resolution? How It Works

Are your digital ads underperforming because you can’t connect fragmented user data into a single profile? You’re not alone. Identity resolution is one of the most crucial yet misunderstood strategies in programmatic advertising. This guide explains what identity resolution is, how it works, and why it’s transforming digital marketing.

Whether your goal is to increase CTRs, lower CPAs, or simply make smarter ad spend decisions, this blog will show you how identity resolution unifies customer profiles across devices and channels, powers targeting, improves audience segmentation, and delivers personalization and measurable ROI at scale.

 

What Is Identity Resolution?

Identity resolution is the process of linking user data across devices, platforms, and touchpoints to create a unified customer profile. It consolidates fragmented identifiers like cookies, device IDs, and email addresses into a single, persistent identity. This enables advertisers to understand who their customers really are, regardless of how or where they engage.

For advertisers, identity resolution is critical because it powers precise targeting, accurate attribution, and personalization at scale. In an era where third-party cookies are vanishing, it’s becoming the foundation of effective digital marketing.

 

 

Deterministic Vs. Probabilistic Identity Resolution

There are two main approaches to identity resolution: deterministic and probabilistic.

  • Deterministic Identity Resolution: Matches identifiers based on exact, verifiable data like login credentials, hashed email addresses, or a consumer’s account information. It’s highly accurate but limited in scale.
  • Probabilistic Identity Resolution: Uses algorithms and statistical models to infer identity connections based on behavior, location, or device signals. It’s broader in scale but slightly less precise.

Both methods complement each other. Deterministic ensures precision, while probabilistic expands reach and fills in the gaps where deterministic data isn’t available.

In practice, most identity resolution strategies combine the two approaches. For example, a retailer might use deterministic login data when customers sign in but then use probabilistic models to connect browsing behavior when they’re logged out. This hybrid approach ensures scale without sacrificing accuracy.

What Is An Identity Graph?

An identity graph is a specialized database that stores and connects all user identifiers across channels. Think of it as the “map” that powers identity resolution.

It links device IDs, cookies, hashed emails, and other identifiers into a single profile. Identity graphs are constantly updated in real-time to reflect changes in user behavior, giving advertisers a dynamic, 360-degree view of their customers.

Identity graphs are particularly important in the cookieless era. As cookies disappear, advertisers rely on identity graphs built with first-party data and privacy-compliant identifiers to maintain visibility across the customer journey.

In programmatic advertising, identity graphs allow for more accurate targeting, suppression of irrelevant audiences, and improved customer journey mapping. Without an identity graph, advertisers risk wasting impressions on duplicate or irrelevant audiences.

 

How Does Identity Resolution Work In Programmatic Advertising?

Identity resolution typically works through several steps in a programmatic environment:

  1. Data Collection: Gather identifiers such as cookies, device IDs, and first-party data from websites, apps, and CRMs.
  2. Data Matching: Link identifiers to individual profiles using deterministic and probabilistic methods.
  3. Identity Graph Activation: Store and update profiles dynamically for real-time access.
  4. Programmatic Delivery: Use unified profiles to deliver personalized ads across devices and platforms.

This process ensures that the right message reaches the right person at the right time.

An advertiser running a cross-device campaign, for instance, could use identity resolution to recognize that the same person who viewed an ad on mobile later converted on desktop. Without this connection, attribution would be inaccurate, and future optimization efforts would be flawed.

Benefits of Identity Resolution

Identity resolution unlocks powerful advantages for advertisers:

  • Improved Targeting: Reach users with precision across devices and platforms.
  • Better Measurement: Track the full customer journey for accurate attribution.
  • Increased Marketing ROI: Reduce wasted impressions by eliminating duplicate or irrelevant targeting.
  • Future-Proofing in a Cookieless World: Maintain strong targeting and personalization even as third-party cookies disappear.

Beyond these, identity resolution also enables:

  • Frequency Management: Control how often users see your ads, avoiding oversaturation and improving brand perception.
  • Personalization at Scale: Tailor messaging to user preferences, behaviors, and context in real-time.
  • Audience Suppression: Exclude existing customers from acquisition campaigns, saving money and improving efficiency.

 

Challenges And Limitations Of Identity Resolution

Despite its benefits, identity resolution comes with challenges:

  • Data Privacy Regulations: Laws like GDPR and CCPA require advertisers to balance targeting with compliance.
  • Incomplete Data Sets: Gaps in identifiers can reduce accuracy, especially if users opt-out of data sharing.
  • Integration Issues: Unifying data across multiple platforms and vendors can be complex and resource-intensive.
  • Accuracy Tradeoffs: Probabilistic methods may introduce occasional mismatches, potentially leading to wasted impressions.

Additionally, consumer trust is critical. Mishandling data or failing to honor consent preferences can damage brand reputation. Advertisers must implement robust data governance and privacy-first strategies to overcome these challenges.

 

Use Cases of Identity Resolution

Identity resolution isn’t just a behind-the-scenes tactic, it drives tangible outcomes for advertisers:

  • Cross-Device Attribution: Understand how mobile impressions influence desktop purchases.
  • Customer Journey Mapping: Identify touchpoints leading to conversion and optimize accordingly.
  • Advanced Retargeting: Serve personalized ads to users who abandoned carts or browsed specific product categories.
  • Omnichannel Campaigns: Deliver consistent messaging across display, social, video, and CTV.
  • Suppression Lists: Avoid wasting budget by excluding existing customers from acquisition campaigns.

These use cases highlight how identity resolution transforms fragmented data into actionable insights.

Identity Resolution in Modern Advertising

Identity resolution underpins precision targeting in an increasingly cookieless world. For one example of this in action, AdExchanger highlights how Blockgraph OnDemand, a data onboarding platform built for small and local businesses, empowers advertisers to match first-party data with premium TV ad inventories, all while preserving privacy. Features like geo-based audiences and collaborative insights reflect how identity resolution enables hyper-specific, household-level targeting across digital and linear channels.

Next Millennium Drives Advertising Success Through Programmatic Advertising


Identity resolution is more than just a buzzword, it’s the backbone of effective digital advertising in 2025 and beyond.
By unifying customer data across touchpoints, advertisers can unlock personalization, improve measurement, and maximize ROI.

At Next Millennium, we empower advertisers with identity-driven programmatic advertising solutions. Our platform combines first-party data activation, dynamic identity graphs, and high-impact ad formats to help you:

  • Reach the right audience with precision
  • Reduce wasted ad spend
  • Build lasting customer connections
  • Stay competitive in a privacy-first, cookieless future

We don’t just provide technology, we provide partnership. Our experts help design, execute, and continuously optimize campaigns to deliver measurable outcomes. Whether you’re building brand awareness, driving e-commerce sales, or launching omnichannel campaigns, we bring together the data, creative, and delivery needed to succeed.

Don’t let fragmented data limit your advertising potential. Harness the power of identity resolution and elevate your programmatic strategy today.

 

BONUS READ: What Is a Device ID? How Device ID Profiles Are Used in Ads