The era of third-party cookies is ending. Browser cookies – the technology that has helped advertisers offer targeted, relevant online ads to users – are going away, with Google sealing the deal once it completely phases them out 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 the Federated Learning of Cohorts (FLoC) instead.
You probably have employed third-party cookies if you’ve ever run advertisements on your website. Even if you’re the one placing ads on publisher sites, the cookie removal and replacement with FLoC in Chrome will bring lasting changes to how you conduct online advertising. After all, many of your target audience may be using Google Chrome. It does command 46.81 percent of overall browser market share in the United States, with close competitor Apple Safari trailing behind with 37.72 percent.
Wait, but what is FLoC in a nutshell? It is an interest-based tracking tool from Google that uses machine learning to group individuals with similar (to an extent) browsing habits into a cohort. This adds a layer of anonymity, as data is stored locally on users’ computers instead of servers while letting advertisers and publishers target cohorts. Here’s Google’s cohorts definition:
“Groups of people with common interests (which) could replace individual identifiers” (2021).
In other words, the Google FLoC is the tech giant’s attempt at a privacy-first solution that protects user data from surveillance while keeping the web open to advertisers. It’s a browser API (application programming interface) plucked from its Privacy Sandbox protocol.
There’s a lot to understand about the FLoC browser API. In this blog, we unpack the most important things you must know to adjust your digital advertising strategy ahead of the complete rollout:
• What is FLoC good for?
• Top Google FLoC issues
• How will FLoC affect digital advertising and marketing?
• How to prepare for the FLoC era
• Get help from a Google Ads agency
• To FLoC or not to FLoC?
What Is FLoC Good For?
To contextualize the move to Google FLoC, it’s important to know that major internet browsers like Safari and Firefox have gone this route and blocked third-party cookies long before Google.
But the tech powerhouse has pointed out that stopping support for the traditional way of tracking does not solve the problem of privacy. It even drives advertisers to find workarounds that may end up being more aggressive or harmful, such as fingerprinting, which identifies a device as having certain attributes (e.g., the operating system, browser and 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 poorly targeted, irrelevant ads.
These are a couple of reasons Google is pitching the FLoC browser API as an efficient tracking tool that upholds user privacy. FLoC focuses on the aggregate instead of individual user behavior tracking, delivering an overall pattern to advertisers. In theory, this should make it hard for them to pinpoint specific user details.
The FLoC origin trial is also showing this interest-based online advertising tracking comes close to the impact of third party cookies. FLoC can produce up to 95 percent of conversions per dollar spent, according to Google.
As early as now, the Federated Learning of Cohorts tool is promising increased anonymity and profitable digital advertising, which sounds like a win-win for users and advertisers valuing online privacy and security.
What’s the Beef: 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, which owns Firefox, has been pursuing privacy-preserving online advertising options. Brave has also rolled out Brave Ads, which rewards users for choosing to view non-invasive ads.
In a way, what’s happening with these browser companies echoes the 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 tasks a user’s browser to profile browsing habits, to create a browser ID and assign it to a cohort. While it’s an anonymized user ID – it doesn’t contain personal identifiers – fingerprinters and other trackers may still be able to start with a cohort and identify your browser out of thousands of possibilities instead of millions.
Further, websites and advertisers with existing website user tracking that helps them identify users, like the “log in with Google” service, can match personal profiles with behavior through FLoC’s user behavior tracking. Access to sensitive information may also lead to discrimination of certain large groups or cohorts.
For the record, when it comes to a cohort frequenting websites with sensitive topics, such as medical, political or religious, Google ensures it won’t be used as all cohorts pass 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 for advertisers look like?
Google’s Ginny Marvin told Search Engine Journal that marketers will be able to tap into their own technology to create seed lists of the most valuable FLoC IDs, which are used to identify interest groups, to their business.
And with the company’s amplified commitment to online privacy and security while delivering ad results and ramping up publisher revenues, targeting and measurement tools will be accessible via FLoC and other technologies in Google’s open-source Privacy Sandbox.
Chances are, if your site supports FLoC, you can enjoy the benefits of its new online advertising tracking tools. One example would be TURTLEDOVE, a proposal from Google that would make retargeting possible even after third party cookies have been phased out and help businesses leverage first-party data to influence consumer ads (first-party data includes site visitors.) But considering the cohorts definition and the loopholes discussed, it’s also your responsibility to evaluate the risks.
At the industry level, the FLoC origin tests are ongoing across select countries, including the United States. Meanwhile, Google advertising agency circles in the European Union (EU) are waiting with bated breath for the antitrust probe. Google’s online advertising tracking solutions have been alleged to monopolize the advertising industry where its Google Ads arm is leading.
How To Prepare for the Federated Learning of Cohorts Era
Strategize First-Party Data Collection
Getting data straight from the source gives you a direct line to your site visitors and potential customers. Plus, you’re asking for their information with their consent.
Whether you are building email lists from scratch or enhancing existing efforts, make sure to deploy effective email and other digital marketing tactics.
Inform Clients or Customers About the Changes
Letting your clients or customers know of the changes allows you to manage their expectations, adjust processes accordingly and strategize together. They’re probably used to accepting browser cookies automatically, so you may need to hold their hand as both of you embrace a new tech.
Watch Out for Updates
This news is still developing, with a lot of moving parts. But the end goal is this: Website user tracking will be a thing of the past and replaced by user behavior tracking. How it all unfolds may be different from what the current situation looks like. But keep your eyes peeled for updates from Google about FLoC and Privacy Sandbox. And stay tuned about what regulators and rivals are also saying. But make sure to balance things out by reading from all sides. Better yet, partner with a Google advertising agency to prepare effectively for the new era.
Get Expert Help From a Google Ads Agency
As we said, there are a lot of factors to consider when preparing for the full FLoC rollout. Chief of these concerns is the tech’s availability only on the Google Chrome browser. How will you reach potential or existing customers who are browsing your site on Safari or Firefox?
Also, how much change should you anticipate as the online advertising tracking landscape transitions into FLoC? Imagine that your cohorts definition or list-building should be polished when the time comes.
Also, how much change should you anticipate as the online advertising tracking landscape transitions into FLoC? Imagine that your cohorts definition or list-building should be polished when the time comes.
With organic and pay-per-click (PPC) advertising being just one of the aspects of online marketing, this may be too much to deal with as a business or brand. As such, it may be more economical and practical to work with a seasoned Google ads agency. Someone with a deep understanding of how FLoC will affect 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 may set the standard for many users, advertisers, marketers and publishers.
Even when you end up not being an early adopter, you must brace yourself for the impact the rollout will have. Its undercurrents are likely to be felt across search engine marketing circles.
More than ever, you must manage the various details involved in this major change. Together with Thrive, a Google advertising agency that’s been around for almost two decades, you can turn this challenge into an opportunity. We provide in-depth strategies that support our clients’ advertising efforts.
Stay adaptable in this privacy-focused era with the right company. Call us on (866) 434-4748 or send us a message to start strategizing ASAP.
