Google Privacy Sandbox: Why It Matters Even with Third-Party Cookies?

Third-party cookies will not be deprecated, then why do publishers need Google privacy sandbox and its proposals? Is there a new path for Privacy Sandbox on the web? Let’s find out!

In 2019, Google Privacy Sandbox announcement initially sparked concern among publishers, threatening the demise of third-party cookies and targeted advertising. 

However, Google has since introduced a balanced approach, offering Chrome users a private browsing choice while developing Privacy Sandbox APIs to support privacy-preserving targeted advertising. 

As a result, the Google Privacy Sandbox remains highly relevant; publishers are advised to continue testing to prepare for a future prioritizing user privacy, leveraging the APIs to gain a competitive edge, and potentially unlocking new revenue streams to safeguard their financial stability.

Here’s How You Can Navigate the Privacy Sandbox and Proposals

Topics API

Google replaced FLoC with a new proposal called Topics API, claiming it will keep things going for interest-based advertising (IBA) even if cookie crumbles in the future. 

However, Topics API takes a different approach. Instead of cohorts, it tracks broad website categories users visit – like news or sports.

Based on your "browsing history," Chrome assigns you five "topics" each week, like "sports enthusiast" or "foodie." But here's the twist—to protect your privacy, they throw in a random sixth topic, like "underwater basket weaving enthusiast" (don't judge, maybe your user is). But the big question is, can these broad categories effectively target relevant audiences?

Here are some of our key takeaways:

      1. General browsing categories: The Topics API has moved away from tracking individual user behavior to assigning users to general browsing categories. This process will enhance user privacy as browsing the web will become less intrusive.

      2. Testing tools: The tools provided for testing the Topics API are considered to be in their early stages and not particularly user-friendly. This has been a point of feedback for further development. 

      3. Data availability: As the Topics API is relatively new, there is limited data available to evaluate its performance thoroughly. The industry is looking for more extensive data to determine the ad effectiveness of the Topics API in real-world applications. 

An article on Digiday acknowledges that the testing period involves a small portion of traffic (1%). This limited data makes it difficult to assess the effectiveness of the broad categories for ad targeting definitively. Advertisers won't be able to tell for sure if their campaigns are reaching the right audience. It also states that during the testing phase, the focus will be on Cost-Per-Thousand-Impressions (CPM) - a basic metric of ad reach - rather than more targeted metrics like Return On Investment (ROI). This suggests some uncertainty about how well these categories will translate to actual conversions or sales for advertisers.

So, test Topics API to find out and adjust your strategy so that you can also thrive in the privacy-focused future of AdTech. 

PAAPI

Protected Audience API (PAAPI) aims at revolutionizing remarketing by creating custom audiences while prioritizing user privacy.  

With PAAPI you can enhance reader engagement and content discovery in a privacy-first future. 

You can deliver targeted, opt-in notifications showcasing relevant articles based on readers' interests. This not only deepens engagement but also empowers readers to curate their own content experience. 

Importantly, this is done in a privacy-conscious manner, with user data remaining secure within their browser. 

By gaining valuable insights into reader preferences without compromising privacy, you can foster a loyal readership and look for new content discovery opportunities, while aligning with the principles of the Google Privacy Sandbox.

Leverage this data responsibly:

1. Targeted ads, increased revenue: Thanks to the Protected Audience API, publishers can run ad auctions on their websites. Here's the key - only advertisers whose websites your readers have already visited can participate. This ensures the ads are highly relevant to your audience.
2. Bidding: Advertisers compete in the auction, driving up the price for ad space on your site. The winner gets their ad displayed on your website in a secure "fenced frame." This protects your reader's browsing activity outside of the advertiser's website.

What's in it for you as a publisher?

PAAPI offers a win-win for publishers. By delivering highly relevant, privacy-conscious ads, you can enhance user experience, increase ad revenue, and future-proof your business. 

Simplify your ad tech stack, align with privacy regulations like the Google Privacy Sandbox, and capitalize on the growing demand for targeted advertising - with or without cookies!

Are there any limitations?

Recent reports highlight a potential hurdle for PAAPI: latency. Publishers might experience an extra 1500 milliseconds of latency when using PAAPI, leading to a significant drop in ad viewability from the industry standard of 70% to a mere 39%. This could negatively impact ad revenue as ad impressions go unfilled.

Here’s what publishers have to say about it:

Also, the industry standard for viewability is 70%, but with PAAPI, publishers are stuck at a measly 39%. Advertisers won't be happy with that, and neither will your bottom line.

Google's proposed double auction, coupled with sequential nature and timeouts, further exacerbates the issue. While PAAPI offers potential benefits, it's crucial to monitor its performance and weigh the drawbacks against the advantages for your specific setup.

Other Google Privacy Sandbox Proposals Publishers Must Know

As publishers, you're navigating a privacy-first web without sacrificing ad effectiveness or user experience. Beyond the buzz around Topics API and Protected Audience API (PAAPI), here’s what you need to know:

 Attribution reporting API

The Attribution Reporting API addresses what PAAPI doesn’t: actionable insights into ad performance without undermining user privacy.

While, PAAPI limits visibility into specific user behavior, and the Attribution Reporting API can help bridge that gap by tracking conversions without revealing individual users. It can highlight which interest groups are most valuable for your website

1. Event-Level Data: Anonymized details on ad interactions for granular analysis.
2. Aggregate Insights: Campaign-wide conversion trends to inform strategy.

Why Does It Matters?

• Measure ad impact where it counts—conversion-driving interest groups.
• User data is protected through aggregation and anonymization.
• Refine your ad targeting and optimize creative for better ROI.
• Get privacy-first clarity on audience segments to power revenue-driving decisions.

It’s a no-brainer for publishers focused on squeezing insights from Privacy Sandbox’s restrictions.

‍Related Website Sets (RWS)

‍If your brand spans multiple domains (e.g., your travel site, flight booking hub, and regional versions), Related Website Sets connect the dots for seamless user journeys.

1. Maintain user identity across domains without cumbersome re-entry processes.
2. Enable single sign-on and personalization without breaching privacy protocols.
3. Keep Chrome onside as the arbiter of cookie access, ensuring compliance.

For publishers with sprawling ecosystems, RWS is the glue that holds the user experience together.

Now, this isn't some free-for-all. Chrome will still be the gatekeeper, deciding when and how cookies get used. But for those of you with a network of branded domains, RWS would be worth exploring.

Shared Storage

Shared Storage is your workaround for privacy-safe cross-site data use. It enables targeted ads and A/B testing without relying on third-party cookies.

1. Serve relevant ads (e.g., travel offers based on past interactions) without exposing browsing history.
2. Test content variations across properties and dynamically adjust experiences.
3. Build relevance and retention while respecting evolving privacy norms.

Shared Storage is currently under development and available for testing in Chrome Canary/Dev/Beta versions. 

All the above-listed proposals are part of a broader effort to evolve the web ecosystem so that it becomes more privacy-focused while allowing for essential advertising and website functionalities. 

A New Path for Privacy Sandbox on the Web

While the immediate future involves the continued use of third-party cookies, the long-term trend is towards a more privacy-focused web. The Privacy Sandbox remains a significant initiative, and its development will continue to shape the AdTech industry.

It's important to stay updated on the latest developments and consider the potential impact of privacy regulations and industry standards on your digital marketing strategies.

Why Testing is Crucial?

To prepare for the inevitable shift, it's essential to actively test and experiment with Privacy Sandbox proposals. By participating in A/B testing and providing feedback to Google and the web community, you can help shape the future.

Key Actions for Publishers:

1. Embrace Privacy Sandbox: Dive into the Privacy Sandbox and explore how its tools can help you maintain ad revenue and user privacy.
2. Partner with Experts: Collaborate with AdOps experts and AdTech partners to navigate the complexities of the Privacy Sandbox and implement effective strategies.
3. Utilize Data and Insights: Leverage tools that provide valuable insights into user behavior and preferences, even in a cookieless world.

FAQs for Publishers:

1. Google Won't Deprecate Third-Party Cookies?

Yes, that's correct. As of July 2024, Google has reversed its decision to phase out third-party cookies. This means that third-party cookies will continue to be used for the foreseeable future.

2. Should the Privacy Sandbox be on or off?

The Privacy Sandbox is still under development and testing. While it offers a potential solution for targeted advertising in a privacy-centric future, it's still not fully implemented.

3. How do I turn off Google Privacy Sandbox?

As of now, there isn't a direct way to turn off the Privacy Sandbox. However, you can disable certain privacy features in Chrome, such as Enhanced Tracking Protection, which might indirectly impact the Privacy Sandbox's functionality.

4. How do I enable Privacy Sandbox in Chrome?

The Privacy Sandbox is enabled by default in Chrome. You can't manually enable it, but you can participate in testing and provide feedback to Google.