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Google Analytics Cookie-less Future: What to Expect

May 13, 2021
Google Analytics Cookie-less Future: What to Expect

The Transition Beyond Cookies in Digital Advertising

Changes in how consumers view privacy, coupled with adaptations in operating systems and browsers, are signaling the decline of cookies as a primary method for tracking user behavior. While many users may welcome this shift, advertisers and marketers depend on data-driven insights to assess the effectiveness of their campaigns. Similarly, publishers require performance metrics for their content.

Google's Machine Learning Approach

Recognizing these needs, Google is leveraging machine learning to prepare its tools, such as Google Analytics, for a future without reliance on cookies. Last year saw the introduction of several machine learning-powered features designed to alert users to notable changes in campaign performance.

Now, Google is advancing this strategy by employing its machine learning systems to model user behavior in scenarios where cookies are unavailable.

The Importance of a New Paradigm

Vidhya Srinivasan, Google’s VP and GM for Ads Buying, Analytics and Measurement, emphasizes the necessity of this evolution. Having joined Google from Amazon and previously IBM, she asserts that the future of data analysis is centered around consent, modeling, and first-party data.

“The principles guiding our measurement roadmap are rooted in evolving consumer expectations and ecosystem shifts,” Srinivasan stated in her initial media interview with Google. “The future is built on consent, modeled data, and first-party information. This framework informs the development of our next-generation products and solutions.”

The Value of First-Party Data

While some users may still consent to data tracking, initial trends suggest this will represent a minority. Consequently, first-party data – and data obtained from consenting users – is becoming increasingly valuable.

To facilitate the utilization of this “consented data,” Google is streamlining integrations with tools like Google Tag Manager, enabling the creation of enhanced first-party data sets.

Enhancements to Consent Mode

Google previously launched Consent Mode, which allows advertisers to manage cookie behavior in accordance with local data protection regulations and user preferences. For advertisers operating in the EU and the U.K., Consent Mode adjusts Google tags based on user choices.

A direct integration with Tag Manager is forthcoming, simplifying the modification and customization of these tags.

Conversion Modeling for Non-Consenting Users

Crucially, Consent Mode will now incorporate conversion modeling for users who do not consent to cookie tracking. Google estimates this can recover approximately 70% of ad-click-to-conversion data that would otherwise be inaccessible to advertisers.

Improving Data Integration

Furthermore, Google is simplifying the process of incorporating first-party data into Google Analytics, ensuring privacy is prioritized while enhancing measurement accuracy and model performance.

A Commitment to the Future of Analytics

“Revamping a well-established product requires acknowledging diverse perspectives, and we understand that,” Srinivasan explained. “However, we firmly believe that Google Analytics must remain relevant to changing consumer behavior and prepared for a cookie-less environment – and that is precisely what we are building.”

She continued, “The machine learning expertise Google has cultivated over years is now being applied to drive the modeling that underpins this technology. We are dedicated to providing credible insights and reporting, recognizing the critical role measurement plays in maintaining market trust. We value the progress we’ve made and are committed to continuous improvement, prioritizing user trust above all else.”

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