Google Reports Promising Results from Privacy Sandbox Experiment for Display Ads

In a recent update, Google shared results from its display ads experiment using Privacy Sandbox APIs, conducted between January and March 2024. This experiment comes in the wake of Google's decision to keep third-party cookies in Chrome, reversing its earlier plan to phase them out by the end of 2024.

Key Findings

1. Scale Preservation:

   • Google Display Ads: 89% recovery in advertiser spend
   • Display & Video 360: 86% recovery

2. Return on Investment (ROI):

   • Google Display Ads: 97% recovery in conversions per dollar (CPD)
   • Display & Video 360: 95% CPD recovery

3. Remarketing Recovery:

   • Google Ads: 55% advertiser spend recovery
   • Display & Video 360: 49% recovery

Google notes that remarketing performance was lower due to its current reliance on third-party cookies and limited testing of Privacy Sandbox by supply side platforms (SSPs).

Context and Implications

These results are significant in light of Google's recent decision to keep third-party cookies in Chrome. While the company is proceeding with Privacy Sandbox development, these experiments show promising alternatives to third-party cookies for advertisers.

Google emphasizes that these results are directional estimates and not final reflections of performance without third-party cookies. The company expects performance to improve as it continues to innovate in privacy-preserving technologies, Google AI, and first-party data solutions.

Looking Ahead

Google plans to:

• Continue iterating on API integration in consultation with the UK's Competition and Markets Authority
• Expand Privacy Sandbox usage across its platforms
• Encourage more ad technology partners to test and integrate the APIs

The company highlights the importance of combining various audience solutions for optimal performance, suggesting a multi-faceted approach for advertisers in the evolving digital advertising landscape.

This update underscores Google's commitment to developing privacy-centric advertising solutions while maintaining effective tools for advertisers, balancing user privacy concerns with the needs of the digital advertising ecosystem.