Google Experiment Confirms Ad Tech Companies Can Survive

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Google is re-assuring the ad tech industry about their future in light of their recent decision to block third-party cookies in Chrome, the world’s most widely used internet browser. Google is set to roll out Privacy Sandbox, a suite of new tools that will replace the current cookie system, but some have expressed doubt as to how well they will work. To prove that their new tools are a viable alternative, Google recently completed a five-week-long experiment that tested the performance of ad campaigns when using third-party cookies versus their new Privacy Sandbox.

The results showed that while ad campaigns using Privacy Sandbox has slightly lower performance than those with third-party cookies, the results were not significantly different. Spending was actually down 2-7%, while conversations per dollar (a measure of success for advertising) decreased by only 1-3%. Clicks were only within 90% of the status quo, showing that this new system still produces successful results. Google VP of Global Ads Dan Taylor praised the results and said that the test showed “digital advertising [can] be more private for users and also effective for advertisers and publishers”.

Google has put in a lot of effort to make sure everybody is on board with its new project and the results of their experiment certainly help its cause. Nevertheless, some are still wary of their plans and are wary of long-term effects this may have on publishers, such as news organizations and websites, who rely highly on digital advertising to make money. Companies such as Provalitics and its CEO Jeff Greenfield, have expressed doubts that Google’s Privacy Sandbox will do more harm than good in the long run.

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This experiment shows that while these new privacy preserving technologies are less effective, they still produce successful results. Google recognizes the importance of having everyone get on board with their project, and the results of the experiment may appeal to the concerns of those hesitant on the changes. By continuing to test, refine, and experiment with their new tools, Google hopes to maintain their control within the advertising business and to keep people’s personal information securely guarded.

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