Criteo: Google Must Improve Privacy Sandbox to Avoid 60% Ad Revenue Drop

July 01, 2024 at 6:03:37 AM

TL;DR Criteo's tests show Google's Privacy Sandbox could cause a 60% drop in ad revenue for publishers if third-party cookies are removed today. However, with certain modifications, it could become a viable alternative. Criteo has requested Google to tweak the APIs to improve performance and fairness. Despite challenges, Criteo believes the concept has potential and urges more rigorous industry testing. Google acknowledges the feedback but emphasizes the need for broader adoption.

Criteo: Google Must Improve Privacy Sandbox to Avoid 60% Ad Revenue Drop

Criteo has evaluated Google's Chrome Privacy Sandbox and found significant issues, but also potential for improvement. Criteo's tests show Google's Privacy Sandbox could cause a 60% drop in ad revenue for publishers if third-party cookies are removed today. However, with certain modifications, it could become a viable alternative.

Key Findings

  • Revenue Impact: If third-party cookies were removed today, publishers' ad revenue on Chrome would drop by around 60%.
  • Performance Issues: Ads on Sandbox traffic experienced over a 100% increase in load time.
  • Market Advantage: The Privacy Sandbox could significantly boost Google Ad Manager's market share from 23% to 83%.

Recommendations for Improvement

Criteo suggests that the Privacy Sandbox could become a viable alternative to third-party cookies if Google makes certain modifications:

  • Performance Features: Enhancements to improve ad performance.
  • Audience Value: Methods to create more valuable audiences.
  • Critical Functionalities: Features to prevent fraud and ensure transparency.
  • Governance: Better organization and efficiency in the rollout process.

Testing and Adoption

  • Rigorous Testing: Criteo conducted extensive tests involving nearly 18,000 advertisers, 1,200 publishers, and 100 million weekly ad impressions.
  • Industry Engagement: Many ad tech vendors have only done limited testing, and publisher adoption remains below 55%.

Google acknowledged the feedback and emphasized that current performance metrics are not fully indicative of future results. They expect performance to evolve as more of the ecosystem adopts the Privacy Sandbox.

While the Privacy Sandbox is not yet ready for full implementation, Criteo believes it can be improved to meet industry needs if Google incorporates the suggested changes.

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