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)

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

• Increased conversion observability.
• Better reporting and modelling.
• Improved bidding and attribution.
• Enhanced overall performance.

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 (CoMo)

Consent Mode addresses the challenges posed by consent banners, ensuring advertisers do not experience measurement loss while maintaining user privacy.

Types

• Basic - Communicates consent status for consenting users only.
• Advanced - Provides insights into users who opted out of tracking through anonymous cookie-less pings.

Benefits:

• Fills in media measurement gaps.
• Enables comprehensive reporting.
• Improves bidding and optimisation.
• Recovers lost conversions due to consent changes.

Key Considerations:

Consent Mode requires sitewide tagging and cookie banner implementation for passing consent conditions to the tag management system.

Digital Markets Act (DMA):

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:

• Work with a CMP for valid user consent.
• Implement Consent Mode by March 2024.
• Migrate to Google Analytics 4.
• Upgrade APIs/SDKs for Google Ads and DV360.

You can read more about the Digital Markets Act on the dentsu website.

Server-Side GTM (sGTM)

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:

1. User visits a website or app.
2. Events or interactions are sent to a server.
3. Data is modified or enriched.
4. Data is sent to the respective endpoint.

Benefits:

• Enhanced security by removing PII before reaching third parties.
• Enriched data for better reporting and decision-making.
• Complete control and flexibility.
• Improved site speed with fewer JS libraries.

Key Considerations:

• Not all platforms can be migrated to server-side.
• Diligent documentation is essential.
• Incurs additional costs for maintenance.
• Works with various technology platforms.

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.