The world of digital advertising is in full evolution, facing the challenge of adapting to an environment in which third-party cookies are getting closer to disappearing. In this context, Google Ads and Display & Video 360 are looking for new ways to segment audiences, always with the aim of protecting user privacy.
Below, we’ll discuss the approach taken by Google and the results of its recent experiments, as well as the potential implications for the future of online advertising.
Changing the focus: privacy and segmentation
Solutions based on affinity and purchase intention
With the disappearance of third-party cookies, Google has been exploring new segmentation solutions that respect the privacy of users. Among these solutions are targeting based on affinity, purchase intent, custom audiences, and demographic targeting on the Google display network. They all use signals aimed at preserving privacy, such as contextual information and the Privacy Sandbox Topics API.
Experimenting with privacy-friendly signals
In Q1 2023, Google conducted an experiment comparing the performance of its Interest-Based Audience (IBA) solutions using privacy-friendly signals instead of third-party cookies. The study looked at a broad set of signals that would be available in a privacy-first environment.
The results and their implications
Impact on advertising performance
The experiment revealed that privacy-protected interest-based audience solutions on Google’s display network showed promising performance. Advertiser spend was down 2-7% and cost per conversion per dollar was down 1-3%. Click-through rates remained within 90% of current values, indicating that the change in targeting did not lead to a drastic decrease in user engagement with advertising.
The role of artificial intelligence
The experiment suggests that the use of AI-assisted optimization solutions can positively influence the performance of advertising campaigns. Campaigns using optimized targeting or “Maximize Conversion Value” bidding strategies were less affected by the removal of third-party cookies.
Google’s study shows that it is possible to find effective advertising solutions that respect the privacy of users. Although the results obtained are encouraging, it is important to note that this experiment is not definitive and that the results of future studies may vary widely.
It will affect advertisers, readers and the media, so virtually no one will be left out.
