Consumers are becoming more paranoid about how brands use their data. As data privacy concerns grew, third-party cookies were phased out and stringent privacy laws were enacted.
As a result, the legal authorities' focus on the ad tech industry has widened a lot more. In fact, in recent months, ad tech companies like Apple and Google have faced back-to-back antitrust lawsuits.
It puts ad tech companies under pressure to address concerns around this issue and devise a solution that promises consumer privacy. And, as evidenced by this recent update, Google is taking consumer privacy more seriously than ever before.
Now, with the recent Google Privacy Sandbox test, it is clear that the sandbox’s tools perform worse than cookies, but not significantly worse.
In our opinion, at least it gives some assurance to advertisers and publishers that life is still there after Chrome’s cookies have been completely gone.
As Google promises, if the machine learning techniques improve the sandbox’s targeting even more in the future, it will indeed become a painless approach for advertisers to face a cookie-less world.
However, as it will be a whole new game for advertisers, the change will be drastic, and they will undoubtedly need to educate themselves in order to reap better results.
Furthermore, Google must also keep in mind that, on the one hand, a slew of other ad tech firms are developing fancy alternatives—their own advertising identifiers—to replace cookies.
On the other hand, the majority of advertisers are still unsure whether they will be able to target a high degree of relevant audiences with this approach, as it only allows for targeting groups and not individuals. Which, in turn, necessitates that Google establish that its techniques are effective so as to maintain its vice-like grip on the advertising business.
Simply put, while the recent Google sandbox test results appear promising, Google still has a long way to go.