In the ever-changing landscape of online data privacy, advertisers face challenges stemming from regulatory changes, browser updates, and the erosion of user trust. The introduction of data protection policies like GDPR, CCPA, and the upcoming Digital Markets Act (DMA) has led to the implementation of consent banners and user-managed data sharing. Browser updates, particularly from major players like Safari, Firefox, Brave, OneSearch, and Microsoft's Edge, have resulted in limited conversion measurement due to the blocking of third-party cookies. Meanwhile, user concerns about online privacy have reached a staggering 80%, emphasising the need for innovative solutions.
Research conducted by BCG & Google reveals that 74% of individuals express a preference for ads that are not only relevant but also useful to them. Consumers now expect brands to proactively understand their needs and deliver valuable online experiences. These shifting expectations pose a challenge for advertisers in terms of effectively measuring and targeting their campaigns. As the advertising landscape moves towards a privacy-focused future, advertisers must explore alternative methods that don't rely on traditional user identifiers. This shift is particularly pertinent as, by 2024, an estimated 75% of the global population will be covered by modern privacy regulations, making the reliance on personal data more complex.
Despite the inherent challenges, these changes present an opportunity for the emergence of new privacy-preserving solutions that can revolutionize the advertising industry.
In this blog, we’ll explore some of the innovative privacy-preserving solutions such as Enhanced Conversions (EC), Consent Mode (CoMo), and Server-Side Tagging (sGTM) and explain how Merkle can help.
Enhanced Conversions (EC) is a privacy-preserving tool designed to address challenges arising from limited cookies. It enhances conversion measurement accuracy by capturing hashed customer data and matching it with Google logged-in data.
Benefits
Implementation
EC can be implemented automatically through tag-based methods, manually using CSS/Java or Code, or via API. Key considerations include sitewide tagging and using Google Ads/Floodlights as the conversion source.
Security
EC ensures safe data handling through secure data hashing, utilising the SHA256 algorithm for irreversible one-way hashing. Hashed data is securely sent to Google servers encrypted via HTTPS, maintaining user privacy.
Conversion-based Customer Lists
By opting into this feature, advertisers can automatically create conversion-based customer lists, simplifying first-party measurement and activation while maintaining user privacy.
Consent Mode addresses the challenges posed by consent banners, ensuring advertisers do not experience measurement loss while maintaining user privacy.
Types
Benefits:
Key Considerations:
Consent Mode requires sitewide tagging and cookie banner implementation for passing consent conditions to the tag management system.
At this point it is worth flagging DMA. Effective from March 6, 2024, DMA aims to make digital markets fairer and more contestable. Advertisers need to adapt to three main changes related to Consent Mode, UA360, and offline data injections.
Steps to Take:
You can read more about the Digital Markets Act on the dentsu website.
Server-side tagging, exemplified by sGTM, provides an alternative to browser-dependent data transmission, enhancing security, data enrichment, control, and site speed.
How it Works:
Benefits:
Key Considerations:
As the online privacy landscape evolves, advertisers must embrace privacy-preserving tools like Enhanced Conversions, Consent Mode, and Server-Side GTM to ensure accurate measurement, targeted campaigns, and user trust. Adapting to regulatory changes, such as the Digital Markets Act, and investing in multiple technologies will be crucial for staying ahead in this dynamic ecosystem.
At Merkle, we ensure that our clients are ready to embrace new technologies and navigate the evolving digital advertising landscape successfully. Feel free to reach out to our Google Tech Practice team here for more information or support on safeguarding your data and measurement.