Google Privacy Sandbox will change advertising by removing cookies
The ad revenue will decrease dramatically
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Traditional advertisers rely on third-party cookies to track our data and use it to target us with ads. However, this method raises privacy concerns. So, Google implemented the Privacy Sandbox initiative on Chrome. Through it, the company wants to remove third-party cookies and reduce cross-site and cross-app tracking.
During the beta testing phase on Chrome, 1% of the users experienced the Privacy Sandbox. Afterward, according to Stu Colman, there was a 30% decrease in ad revenue for the users without cookies. Thus, if Google doesn’t implement the initiative carefully, it could be the end for many publishers.
How does ad targeting work?
Long story short, advertisers track us across websites by using cookies. They help websites remember our choices and various types of data about us. So, if the Google Privacy Sandbox removes them from Chrome, it will be harder for advertisers to target us with specific ads. As a result, the revenue generated from ads will decrease.
In addition, advertisers use cookies to track ad performance. Thus, it will be harder for them to monitor results and optimize campaigns.
Instead of cookies, the Privacy Sandbox from Google uses a topics system. It works by assigning labels to users. So, based on what you are searching for, you will receive personalized ads. This method could work, but there are some concerns about it.
How does the Google Privacy Sandbox work?
For example, a niche website could assign you a specific label while you browse. However, a Google service like YouTube could give you another label for the same topic.
On top of that, while publishers share their topics with YouTube, the service doesn’t do the same. So, Google-owned services will have more to gain.
Another problem with the Privacy Sandbox from Google is that it might need various API integrations. Thus, it will be harder for publishers to implement it.
For instance, the Android version requires an Attribution Reporting API, a Protected Audience API, and a Topics API to measure campaign outcomes and target relevant audiences. Additionally, it uses the SDK Runtime for secure third-party integration.
Ultimately, the Privacy Sandbox from Google will change digital advertising. Also, it appears to favor Google services. As a result, marketers might choose to advertise on Amazon, YouTube, and Facebook. In addition, various publishers will cease their operations due to the decrease in ad revenue. It feels like the Privacy Sandbox brings a lot of issues.
What do you think? Should Google pause it? Let us know in the comments.
