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Identity Solutions Under Scrutiny: Publishers Question Alt IDs, Location Data Faces FTC Crackdown
Recent industry developments highlight significant challenges within alternative identity solutions, with a publisher reporting issues with UID2. Concurrently, a major ad tech firm, Kochava, settled with the FTC over mishandling location data, signalling increased regulatory pressure on data privacy practices.
What Happened
- •A publisher experienced difficulties with Unified ID 2.0 (UID2), questioning its practical value as an alternative identifier.
- •The incident raised concerns about the reliability and efficacy of alternative ID solutions in the ad tech ecosystem.
- •Ad tech company Kochava reached a settlement with the US Federal Trade Commission (FTC).
- •The FTC settlement addressed allegations of Kochava selling sensitive location data without adequate consumer consent.
- •This regulatory action underscores growing scrutiny on data brokers and location data practices.
- •Source: AdExchanger, 8 May 2026.
Why It Matters for NZ Marketers
- •NZ marketers relying on global ad tech platforms for audience targeting may encounter similar identity resolution issues, impacting campaign performance.
- •The deprecation of third-party cookies necessitates robust alternative ID strategies, but their current instability poses risks for NZ media spend.
- •Increased global regulatory action on data privacy, particularly concerning location data, sets a precedent that could influence NZ's privacy landscape.
- •NZ businesses handling consumer location data must review their consent mechanisms and data handling practices to mitigate future compliance risks.
- •Publishers in NZ, like their international counterparts, need assurance that alternative IDs provide tangible value and reliable monetisation opportunities.
- •The challenges with UID2 highlight the need for NZ marketers to diversify their identity strategies beyond single-point solutions.
Strategic Implications
- •Prioritise first-party data collection and activation to reduce reliance on potentially unstable third-party identity solutions.
- •Evaluate the efficacy and transparency of all ad tech partners' identity solutions, demanding clear performance metrics and data governance policies.
- •Investigate privacy-enhancing technologies (PETs) and contextual targeting as complementary or alternative strategies to traditional ID-based targeting.
- •Develop robust internal data privacy frameworks, ensuring explicit consent for data collection, especially sensitive data like location.
- •Advocate for industry-wide standards and interoperability for alternative IDs to foster a more stable and reliable ecosystem.
- •Educate marketing teams on the evolving identity landscape and regulatory requirements to ensure compliant and effective campaign execution.
Future Trend Signals
- •Continued fragmentation and evolution of identity solutions, requiring marketers to adopt a multi-faceted approach.
- •Heightened regulatory enforcement globally, pushing for greater transparency and consumer control over personal data, including location.
- •Increased demand for privacy-preserving measurement solutions that do not rely on individual-level identifiers.
- •Growing emphasis on contextual targeting and AI-driven audience segmentation as privacy-friendly alternatives.
Sources
Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.
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