January 25, 2021

Arrow is privacy first and out ahead of the recent changes in IFDA and cookie based targeting.

Over the past 5 years, there is an on-going conversation regarding consumer data and privacy online.  Key players in the industry, such as Google and Facebook are responding to growing consumer awareness, governmental action and a willingness to address consumer concerns.  


Government regulation of consumer privacy is increasing.  GDPR (General Data Protection Regulation)  was passed in the EU on 14 April 2016, and became enforceable beginning 25 May 2018.  This requires notification of the use of cookies as well as many other data protections for online users.  Companies owning websites implemented the data protections and consumer notification for all site visitors rather than try to segment out EU visitors.  It is cheaper and more effective to implement changes globally.  


In 2013 California passed  the Online Privacy Protection Act which extends to any visitor based in California (IP address) that visits a website.  Similar to gasoline CAFE standards, California is setting the standard and most websites are implementing changes for all US visitors to websites.  


Browser tracking and Cookie Data is at a tipping point as well regarding consumer privacy and data protection .  Consumers are becoming more aware of the use of cookies and the tracking of search history and browser behavior to target ads. The first wave of change is “ad blocking” software which can be installed in your browser and stops the placement of cookies.  Over time, browsers have added functionality to give users easier ways to stop cookies, clear browsing history and otherwise manage their data sharing in browsers.  


This year Google has announced that they will no longer allow browser history to be shared and start to block cookies globally.  This is a major and yet inevitable shift in the industry.  Google will now allow advertisers to target users by “cohorts”, users grouped around interests instead of specific site visited.  In other words, you can no longer target a user who visited “nike.com” in the last 30 days but interest based categories such as “athlete”, “runner” etc. are targetable.  


Another major shift this year is the deprecation of IDFA in iOS14.  The latest operating system released by Apple for iPhones defaults to not sharing your unique device with advertisers.  Consumers are able to “opt in” but it requires navigating to that setting and flipping the switch.  


This reduces the ability to target by device ID, one of the primary targeting tools for advertisers on Facebook.  This change has ZERO IMPACT on interest based targeting which we do.  Our targeting tools and AI machine do not require device ID and in this post device ID era, we will be the most effective targeting approach.   


Interest based targeting is the way forward for the industry, with adoption by both Google and Facebook on this approach to ad targeting.  GREAT news for us as we have been developing interest based targeting tools for the last 18 months, patented and proprietary technology AND an “interest graph” that is effective, efficient and privacy first.  


Right place, right team, right time!




Notes and Links:


GDPR (General Data Protection Regulation) - https://en.wikipedia.org/wiki/General_Data_Protection_Regulation#:~:text=The%20GDPR%20was%20adopted%20on,enforceable%20beginning%2025%20May%202018.


On Line Privacy Protection Act. 


https://en.wikipedia.org/wiki/Online_Privacy_Protection_Act


IFDA changes - 


https://www.forbes.com/sites/johnkoetsier/2020/06/24/apple-just-made-idfa-opt-in-sending-an-80-billion-industry-into-upheaval/?sh=511fb453712c


https://www.cnbc.com/2020/12/15/apples-seismic-change-to-the-mobile-ad-industry-draws-near.html


https://www.facebook.com/business/news/preparing-our-partners-for-ios-14-launch


Google changes to “cohort based targeting”


https://www.adexchanger.com/online-advertising/google-claims-flocs-can-be-nearly-as-effective-as-cookie-based-ads/


https://blog.google/products/ads-commerce/2021-01-privacy-sandbox/


Facebook has released an overview of how they see these changes impacting small businesses:

https://www.facebook.com/business/apple-ios-14-speak-up-for-small-business/impact-on-ads-marketing?__cft__[0]=AZXgxxtteTpItKobO2Lk8AweRGVe68cKG7VmobKkQFvkpCVjo-ntnytf9UNHASX7H-4ngJo1JfKFbODND-0HtOAdjtABduaWIqwHMaefDA_XgenleZpFf_aNDqVVKPKYMwPyhjfZVYwsEImJ-puTg1MXJgDGnVVQHXt3hUl3_41hznRYelH_2P-lMEKt4OBbT3Y&__tn__=-UK-R


With more detailed guidance to manage it here:

https://www.facebook.com/business/help/331612538028890?id=428636648170202


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