Google will create ‘real world’ conditions so publishers and ad tech providers can ease into post-cookie internet.
The Insights: Google intends to test its new ad technology by eliminating third-party cookies in Chrome. The company's proposed alternative is a privacy-centric system known as Federated Learning of Cohorts (FLoC), which classifies users into cohorts based on their browsing patterns instead of individually tracking them. Google plans to start a trial of FLoC with advertisers in the coming months to eliminate 1% of cookies in Chrome in 1Q24 before turning off 100% of the cookies in 3Q-4Q24.
This shift aligns with the industry's general direction and addresses mounting concerns surrounding user privacy. However, the decision has sparked apprehension among advertisers and publishers who heavily rely on cookies for targeted advertising. The fear is that without individual tracking, the effectiveness of ad campaigns may be compromised. But, Google aims to strike a delicate balance between respecting user privacy and delivering effective ad targeting.
By leveraging FLoC, Google hopes to provide advertisers with the ability to target audiences based on shared interests and characteristics within cohorts, while keeping individuals' identities anonymous. This approach enables advertisers to reach relevant audiences without sacrificing individual user privacy. This has been an ongoing discussion over the past year, so stay tuned for more updates and how Adomotive stays ahead of this change/trend.