Under the gun from lawmakers and lawsuits, Google’s™ web privacy efforts have made it harder for advertisers, publishers, and data brokers to gather personal data without users’ permission. Google™ will no longer be making data profiles based on users’ activity on Google™, and while this is great for individuals who seek privacy, for advertisers it’s a blow to the face.
Third-party cookies that are placed on websites are being phased out, including the ability for third-party sites, like Google™, to track activity upon entering and leaving websites. This could potentially hurt advertisers who want to target competitors’ websites and people in the market for products. The silver lining: If you have a Google™ ad tag already installed on your website, Google™ will still be able to gather data from your visitors and retarget them with your ads.
An alternative to a full privacy lockdown was introduced in 2019 by Google™ with the idea of a “privacy sandbox” designed to serve both the privacy concerns of individuals and the need to target user interests for advertisers and publishers. The privacy sandbox is “a secure environment for personalization that also protects user privacy,” said Justin Schuh, a Google™ Chrome engineer. The privacy sandbox is still in progress and has multiple ways it can gather data without accessing the personal details of the user, including a “privacy budget” and Federated Learning of Cohorts (FLOC).
Apple® has already announced a similar initiative to promote privacy on its cellular devices. The new iOS 14 will have a feature for users to select whether they give permission to be tracked on all apps.
Who will this affect?
Advertisers like our credit union clients, of course.
Not having data based on individuals’ interests and intent greatly hinders the ability of advertisers to target the right people at the right time. It is great for users who value their online privacy.
Facebook® doesn’t entirely agree with Apple® and Google’s™ approach to eliminating data collection. In their recent ad campaign, Facebook® defends the right for personalized advertising in that “Good Ideas Deserve to be Found.” Facebook’s® ad campaign advocates that not all data collected are bad for consumers. In fact, the data that are collected will only benefit people by serving ads that fit a consumer’s interests. The ad promotes helping small businesses to reach the consumer in a more personalized way.
So, here’s the bottom line: The privacy updates are happening. They will force advertisers to think outside-the-box instead of relying on data to find interested consumers.
Your Marketing Company’s clients may experience increased clicks and lower converted traffic due to the restrictions on personalization capability, but we will grow together and shift paths as we always do. YMC is constantly striving to reach your credit union’s members on the ever-changing advertising landscape.
Here are additional resources if you’d like to learn more: