What Happened With Google Privacy Sandbox?
For years, marketers have been preparing for cookies to disappear from our browsers. In 2021, Google warned us about their plans to phase out third-party cookies to comply with privacy laws and regulations, but these plans aren’t working out quite as they’d hoped. In fact, they recently announced that they won’t phase out third-party cookies in Chrome as previously planned, instead opting for a new approach that is yet to be confirmed.
In this article, we dig a little deeper into what Google’s Privacy Sandbox actually is, what the concerns are with it, why deprecating third-party cookies has been scrapped, and what you need to do to prepare your brand or business for the future.
What Is Google's Privacy Sandbox?
According to Google, the Privacy Sandbox “aims to create technologies that both protect people’s privacy online and give companies and developers tools to build thriving digital businesses. The core focus of the Privacy Sandbox is deprecating the advertiser ID, which is the core means of tracking for Google, and eliminating third-party cross site trackers.”
In other words, they wanted to enable personalized advertising without compromising user anonymity.
WHY WAS GOOGLE DEVELOPING PRIVACY SANDBOX?
As seasoned marketers will know, cookies exist to track user behavior and target them with specific ads. These third party cookies have helped brands and advertisers seek out internet users who are most likely to want to purchase a product from them — so you can see why marketers are big cookie fans.
It works like this:
A user visits a site and is served an ad.
This deposits a cookie in their browser.
The cookie records the user’s behavior then shares it back to the site.
However, this information isn’t just shared with the website that the user visited. Tracking usually extends to other sites and other behaviors the user carries out. This is where the privacy issues come in. With so much third-party tracking, third parties have access to a lot of data about web users.
In the US, some states have their own privacy regulations, such as CCPA in California, but we also have HIPAA on a national level. In Europe, there’s GDPR, which saw a dramatic tightening in privacy laws. The Privacy Sandbox therefore needed to be a global solution.
WHAT WERE GOOGLE’S AIMS FOR PRIVACY SANDBOX?
Google’s aims for the Privacy Sandbox included:
Preventing internet spam and fraud
Showing relevant content and ads to users
Measuring ad performance
Improving user privacy across sites
Limiting covert tracking
However, Privacy Sandbox sparked significant concerns among digital advertisers who rely heavily on third-party cookies for tracking, targeting, and personalizing ads.
Google attempted to introduce Google Privacy Sandbox but the change was not as simple as they might have hoped. While the Privacy Sandbox was available for testing, two key reports were published and revealed some serious concerns about Google’s Privacy Sandbox.
As a result, Google has reversed course and won’t phase out third-party cookies in Chrome as previously planned.
The Issues With Google's Privacy Sandbox
Here’s an overview of the various issues that surfaced during testing.
LATENCY ISSUES
One of the significant technical concerns was the increased latency in ad rendering. Testing conducted by Criteo revealed substantial latency increases under the Privacy Sandbox, which could negatively impact user experience, ad viewability, and ultimately ad revenue. Advertisers feared that these latency issues might lead to reduced engagement and effectiveness of their ad campaigns.
INDUSTRY CONCERNS
Key industry bodies, including the IAB Tech Lab, raised alarms about the gaps in functionality critical for digital advertising. These gaps included challenges in frequency capping, audience creation, and detailed reporting. The IAB Tech Lab's analysis suggested that the current iteration of the Privacy Sandbox did not fully address the needs of the digital advertising industry, which could hinder the effectiveness of ad campaigns and lead to potential revenue losses.
PRIVACY SAFEGUARDS
Despite the primary aim of the Privacy Sandbox being to enhance user privacy, there were concerns about potential loopholes that could compromise user anonymity. Both regulators and industry participants worried that some of the new technologies might not provide robust privacy protections, which could lead to the exploitation and misuse of user data. Ensuring that these new standards genuinely protect user privacy without creating new vulnerabilities was an ongoing and critical challenge.
REGULATORY CONCERNS
Google’s Privacy Sandbox also faced scrutiny from regulators who were concerned about competition and market fairness. There was understandable concern that Google's control over the new standards might stifle competition in the ad tech industry.
With all of the above concerns raised, it’s no surprise that Google is exploring other avenues, though Privacy Sandbox APIs will continue to be developed and made available as alternatives to the as-yet-unconfirmed new solution.
What Happens Now?
Google had spent over four years trying to build Privacy Sandbox, but now that third-party cookies won’t be deprecated, what happens now?
Anthony Chavez, vice president of the Google-backed Privacy Sandbox initiative, said in a blog post: "Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they'd be able to adjust that choice at any time.
They are currently discussing this new path with regulators, with new updates expected to come as the plans progress.
What Can Digital Advertisers Do To Prepare For The Future?
During these changing times, it’s important that digital advertisers don’t just bury their heads in the sand. To continue to perform as a brand or business, you’ll need to be proactive. Here are some key actions to consider:
STAY INFORMED
Make sure that you keep up with the latest developments surrounding the “new experience” in Chrome. This involves keeping up with updates from Google, industry analyses, and regulatory changes. Having a better understanding will help you to anticipate changes and adapt your strategies accordingly.
BUILD A FIRST-PARTY DATA STRATEGY
One of the best ways to mitigate the impact of changes surrounding third-party cookies is to build a robust first-party data strategy. This involves collecting and leveraging data directly from users through interactions on owned channels such as websites, apps, and email. First-party data is more reliable and privacy-compliant, providing valuable insights for personalized marketing.
DIVERSIFY DATA SOURCES
As well as first-party data, advertisers could explore other privacy-friendly data sources such as contextual data, aggregated data, and data from consented partnerships. Diversifying data sources can help fill the gaps left by the absence of third-party cookies, enabling continued effective targeting and measurement.
LET A PPC AGENCY HANDLE IT FOR YOU
We still don’t know what the future will hold, as Google explores new options and continues to work on Privacy Sandbox. Given the significance and complexity of these changes, rather than feeling like you need to become an expert on paid advertising overnight, it might be better to bring in the help of the experts.
Experienced agencies can provide expertise and guidance on implementing new strategies, optimizing ad campaigns, and ensuring compliance with privacy regulations. This can minimize the impact that future changes may have on your business and place you ahead of your competitors.
If you’re looking to maximize ad performance, get in touch with the PPC specialists at Block & Tam today.
