Yahoo Finance SiriusXM (SIRI) Embraces Unified ID 2.0 for Audio Advertising
SiriusXM SIRI-owned advertising arm, SiriusXM Media, has announced the adoption of Unified ID 2.0 (UID2) as an identity solution for its programmatic audio advertising. This groundbreaking decision makes Pandora Media LLC, a subsidiary of SIRI, the first audio publisher to embrace UID2, offering advertisers a privacy-friendly solution for precision targeting, frequency management and measurement.
The decline of traditional identifiers, such as third-party cookies, has created a data gap in the programmatic advertising space. By adopting UID2, an alternative identity solution, SiriusXM Media is positioning itself as an industry leader that is prepared to navigate future headwinds and deliver on the promise of addressable, cookie-less advertising.
SiriusXM's adoption of UID2 is facilitated through a partnership between AdsWizz Inc., the technology engine powering audio content monetization globally, and The Trade Desk TTD, a leading demand-side platform. TTD has been working to create interoperable standards for unified cross-screen campaigns using aggregated data from publishers and MVPDs.
This collaboration allows AdsWizz to enable UID2 across Pandora, providing advertisers with a highly addressable platform for the next generation of identity-based advertising.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
SIRI's Adoption of UID2 Intensifies Competition in the Advertising Arena
UID2 represents the latest step in SiriusXM Media's efforts to empower advertisers with privacy-friendly planning, targeting and measurement capabilities. The company already offers contextual targeting capabilities and a cookie-less Predictive Audiences solution, and now, with the adoption of UID2, advertisers gain more addressable scale and ease of transacting programmatically.
By embracing UID2, SiriusXM Media offers advertisers a range of options, including programmatic top-of-stack and open and flexible buying across various deal types, open measurement and multiple identity solutions, including UID2, all while supporting an open ecosystem.
The move toward alternative identity solutions like UID2 is a critical step for the advertising industry as it grapples with the challenges posed by the declining effectiveness of third-party cookies and the growing demand for privacy-compliant advertising solutions. SiriusXM's early adoption of UID2 positions the company as a leader in the audio advertising space, providing advertisers with a scalable and addressable platform that respects consumer privacy while delivering precision targeting and measurement capabilities.
By offering a range of solutions, including contextual targeting, cookie-less Predictive Audiences and UID2, Sirius XM Media is providing advertisers with a comprehensive suite of tools to navigate the evolving advertising landscape.
However, shares of this Zacks Rank #3 (Hold) company have plunged 51.6% in the year-to-date period against the Zacks Consumer Discretionary sector’s growth of 25.5% due to increasing competition. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SIRI’s 2024 revenues is pegged at $8.81 million, indicating year-over-year decline of 1.63%. The consensus estimate for earnings is pegged at 31 cents per share, which remained unchanged over the past 30 days.
Major players in the advertising space, such as Spotify SPOT, iHeartMedia IHRT and other prominent audio platforms, now face increased pressure to explore and implement similar identity solutions to maintain their competitive edge.
Spotify has been expanding its advertising technology stack, including the acquisition of Megaphone, a podcast advertising platform, and the launch of its Spotify Audience Network, which allows advertisers to reach Spotify's listeners across a range of platforms. Similarly, iHeartMedia has been leveraging its vast network of radio stations and digital platforms to offer advertisers a comprehensive suite of audio advertising solutions. The company has partnerships with leading advertising technology firms, such as AdsWizz, to provide targetable and measurable ad campaigns.
By addressing the challenges of identity and measurement head-on, SIRI is positioning itself as a formidable competitor in the advertising arena, potentially setting the stage for further disruption and innovation in the years to come.
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