Hardwareluxx has been tracking-free for some time and therefore does not require a consent management platform. Now Google seems to be following our example, as the company announced that it would no longer publish ads that track users across multiple websites. The search engine giant does not intend to develop a replacement for tracking either. However, data will still be collected. With FLoC, the company presents a new approach. The so-called “Federated Learning of Cohorts” combines users into groups. This means that the data can no longer be misused as easily as it is when tracking individuals.
Although the whole thing is an improvement, data from Google will continue to be collected here in order to carry out the grouping. It remains to be seen whether this will actually improve the protection of privacy. Not much should change for advertisers. According to internal tests, they can expect around 95% of their previous conversions even with FLoC. It will start in the second quarter of 2021. Then FLoC-based cohorts can be used via Google Ads.
At around 32 billion US dollars, the display of advertising is a significant factor in Google’s total revenue. Google should therefore be closely monitoring the effects the new technology will have. However, the alternatives have so far been limited. However, should there be a massive drop in sales, it is conceivable that advertisers will cut their budgets for Google and invest them in other forms of advertising. Among other things, Facebook advertisements or cooperation with influencers are possible here. But classic advertising could also regain popularity in this way. New forms of advertising would also be conceivable in the future.