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While Apple plans to roll out its new IDFA update shortly, which is expected to dramatically reduce the amount of behavioral data available to advertisers across the mobile ecosystem, Google is also exploring its options on this front, as it s ‘strives to evolve Android. to accelerate the general trend towards increased transparency in data tracking.
According to Bloomberg:
“Internally, the search giant is discussing how it can limit data collection and cross-app tracking on the Android operating system in a less stringent way than Apple’s solution.”
Google, of course, is already looking to address concerns about data collection by eliminating third-party cookies from the web. But Google also relies on collecting audience data for its own advertising platform and as such is working on alternative solutions that would still allow targeting, albeit in a less intrusive and individually targeted manner.
As a replacement for cookie tracking, for example, Google is working on a new interest-based solution that would allow advertisers to target groups of people with common interests, replacing individual identifiers.
Google’s Federated Learning of Cohorts (FLoC) process creates ad audiences based on web browsing behaviors, without recording any personal information.
“The browser uses machine learning algorithms to develop a cohort based on the sites a person visits. The algorithms can be based on the URLs of the sites visited, the content of those pages, or other factors. The central idea is that these algorithm’s input features, including web history, are kept locally on the browser and not downloaded elsewhere – the browser only exposes the generated cohort. “
According to recent reports from Google, he expects FLoC will allow advertisers to achieve up to 95% of their current conversions per dollar spent on cookie-based advertising, thus mitigating the impacts of the cookie tracking change. There will, of course, be variations on that, but that’s basically what Google is aiming for – as opposed to Apple, which is less concerned about the broader impacts of the industry following the IDFA change.
Because Apple doesn’t make the same revenue from digital ads, and as some have argued, the IDFA change actually benefits Apple’s business interests, as it will push app developers to alternative revenue streams. , like in-app subscriptions, which Apple is taking a discount from.
Whether this is the main motivator or not is impossible to say, but regardless, IDFA changes are coming and should have a big impact on the effectiveness of ads.
As such, it’s good to note that Google is taking a more thoughtful approach to its solution. Reports so far have suggested that Google won’t seek to include explicit acceptance prompts, like Apple’s IDFA change.
But even so, there will be impacts. As Google seeks to meet all expectations and ensure that developers are still able to use data tracking, as more digital privacy tools are rolled out they will lead to major changes in the digital advertising landscape. We won’t know the full extent of this until every bit is introduced, but with the greater push towards increased transparency and consumer choice in how their data is used, businesses need to think about how. how they tailor their search processes to maintain ad performance.
How good is your connection with your audience? How much audience data do you have within your company?
How dependent is your marketing process on third party data?
These are the questions companies need to ask and address as new measures are rolled out.
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