The era of third-party cookies is coming to an end. Browser cookies, the technology that has helped advertisers deliver relevant and targeted online ads to users, will disappear and Google will seal the deal once it completely removes them in Chrome by 2023.
In response to the series of data privacy issues in digital advertising that have plagued it for years, Google is piloting Federated Learning of Cohorts (FLoC).
You have probably used third-party cookies if you have ever served ads on your website. Even if you are the one placing ads on publishers' sites, removing cookies and replacing them with FLoC in Chrome will bring lasting changes to the way you advertise online.
Wait, but what is FLoC in a nutshell? It's an interest-based tracking tool from Google that uses machine learning to group people with similar browsing habits (to some extent) into a cohort. This adds a layer of anonymity, as data is stored locally on users' computers rather than servers, while allowing advertisers and publishers to target cohorts. Here is Google's definition of cohorts:
“Groups of people with common interests that could replace individual identifiers”
In other words, Google FLoC is the tech giant's attempt at a privacy solution that protects user data from surveillance and keeps the web open to advertisers. It is a browser API (application programming interface) extracted from its Privacy Sandbox protocol.
What is FLoC for?
To contextualize the move to Google FLoC, it's important to know that major internet browsers, such as Safari and Firefox, have gone down this path and blocked third-party cookies long before Google.
But the tech powerhouse has pointed out that stopping traditional tracking does not solve the privacy problem. It even leads advertisers to find workarounds that may end up being more aggressive or harmful, such as fingerprinting, which identifies that a device has certain attributes (for example, the operating system, the browser, and the browser settings used) .
When it comes to digital advertising, the lack of an alternative to collecting user data can ruin the user experience (UX) due to irrelevant and poorly targeted ads.
These are some of the reasons why Google is introducing the FLoC browser API as an efficient tracking tool that protects user privacy. FLoC focuses on aggregate rather than tracking individual user behavior, providing an overall pattern to advertisers. In theory, this should make it difficult for them to identify specific user details.
FLoC's proof of origin also shows that this interest-based online advertising tracking comes close to the impact of third-party cookies.
Already now, the Federated Learning of Cohorts tool promises greater anonymity and cost-effective digital advertising, which sounds like a win-win for users and advertisers who value online privacy and security.
Top Google FLoC Issues
Aside from Firefox and Safari, Brave, Vivaldi, and even Microsoft Edge have refused to use the FLoC browser feature. Without browser cookies or FLoC, digital advertising as we know it will no longer be the same. Mozilla, owner of Firefox, has been looking into privacy-preserving online advertising options. Brave has also launched Brave Ads, which rewards users for choosing to view non-invasive ads.
In some ways, what's happening with these browser companies echoes criticism from the Electronic Frontier Foundation: that FLoC is a terrible idea for online privacy and security. The privacy risk may lie in the design itself. FLoC assigns a user's browser a profile of browsing habits, to create a browser ID and assign it to a cohort. While it is an anonymized user ID, it does not contain personal identifiers, fingerprint trackers and other trackers can still start with a cohort and identify your browser from thousands of possibilities instead of millions.
Additionally, websites and advertisers with existing website user tracking that helps them identify users, such as the “sign in with Google” service, can link personal profiles to behavior by tracking user behavior. FLoC user. Access to sensitive information can also lead to discrimination against certain groups or large cohorts.
For the record, when it comes to a cohort that frequents websites with sensitive topics, such as medical, political or religious, Google guarantees that it will not be used, as all cohorts go through an eligibility test.
How will Google FLoC affect digital advertising?
As third-party cookies and their corresponding website user tracking features become obsolete, what will targeting look like for advertisers?
With the company's expanded commitment to online privacy and security, while delivering advertising results and increasing publisher revenue, targeting and measurement tools will be accessible through FLoC and other technologies in the Google open source privacy sandbox.
Chances are, if your site supports FLoC, you can enjoy the benefits of its new online ad tracking tools, a proposal from Google that would make retargeting possible even after third-party cookies have been removed and would help companies leverage first-party data to influence consumer ads (first-party data includes site visitors). But given the cohort definition and gaps discussed, it is also your responsibility to assess the risks.
At the industry level, FLoC origin testing is ongoing in select countries, including the United States. Meanwhile, Google's advertising agency circles in the European Union (EU) are awaiting the antitrust investigation with bated breath. Google's online advertising tracking solutions have been alleged to monopolize the advertising industry in which its arm Google Ads leads.
How to prepare for the era of federated cohort learning
Develop your own data collection strategies
Getting data directly from the source gives you a direct line to your site visitors and potential customers. Additionally, you are asking for their information with their consent.
Whether you're building email lists from scratch or improving existing efforts, be sure to implement effective email and other digital marketing tactics.
Inform Customers or Clients About Changes
Informing your clients or customers of changes allows you to manage their expectations, adjust processes accordingly, and strategize together. They're probably used to automatically accepting browser cookies, so you may need to hold their hand as you both adopt a new technology.
Beware of updates
This news is still developing, with many moving parts. But the ultimate goal is this: website user tracking will be a thing of the past and will be replaced by user behavior tracking. The way everything plays out may be different from what the current situation looks like. But stay tuned for updates from Google on FLoC and Privacy Sandbox. And keep an eye on what regulators and rivals say. But make sure you balance things by reading from all sides. Better yet, partner with a Google advertising agency to effectively prepare for the new era.
Get Expert Help from a Google Ads Agency
As we said, there are many factors to consider when preparing for the full launch of FLoC. Chief among these concerns is the availability of the technology only in the Google Chrome browser. How will you reach potential or existing customers browsing your site in Safari or Firefox?
Additionally, how much change should you anticipate as the online advertising tracking landscape transitions to FLoC? Imagine that defining your cohorts or creating lists needs to be refined when the time comes.
Additionally, how much change should you anticipate as the online advertising tracking landscape transitions to FLoC? Imagine that defining your cohorts or creating lists needs to be refined when the time comes.
Since organic and pay-per-click (PPC) advertising is just one aspect of online marketing, this can be a lot to deal with as a business or brand. As such, it may be more economical and practical to work with an experienced Google Ads agency. Someone with a deep understanding of how FLoC will impact Google Analytics strategy can guide you in the right direction.
To FLoC or not to FLoC?
Google Chrome is an industry-leading browser, and its application of FLoC in online advertising can set the standard for many users, advertisers, marketers, and publishers.
Even if you end up not being an early adopter, you should prepare for the impact the launch will have. Its undertones are likely to be felt in search engine marketing circles.
