Google’s interest-based ad experiments show ad spend, click-through rates down slightly

Results from a Google experiment showed that interest-based audience solutions performed reasonably well compared to third-party cookies.

The results. The results were compared using interest-based audience (IBA) solutions with privacy-preserving signals on the display network, Google Display Ads advertiser spending on IBA, as a proxy for scale reached (meaning that a particular metric or value is being used to estimate or represent the extent or level of impact achieved in a specific context. In this case, it indicates that the given metric serves as an indirect measure to help understand the overall reach or success of a particular aspect being discussed).

• Advertiser spending on interest-based audiences (IBA) decreased by 2-7%, compared to third-party-cookie-based results.
• For conversions per dollar, the decrease was 1-3%.
• Click-through rates remained within 90% of the status quo.
• Campaigns using optimized targeting or Maximize conversions bid strategies were less impacted by the removal of third-party cookies, indicating that machine learning can play a significant role in driving results.

The experiment. Google Ads and Display & Video 360 have been conducting experiments with interest-based audience solutions ahead of Chrome’s deprecation of third-party cookies.

In the first quarter of 2023, Google Ads platforms ran an experiment to determine the effectiveness of IBA solutions when relying on a combination of privacy-preserving signals, including contextual information, first-party identifiers, and the Topics API from the Privacy Sandbox.

Why it matters. Google believes that ad tech platforms can set a new standard for privacy that meets consumers’ expectations while giving businesses the tools they need to grow through innovation. Over the coming months, Google will continue to run more rounds of testing and provide regular feedback to Chrome and the broader industry. As an advertiser, it is important to adopt innovative ad solutions that protect people’s privacy and drive performance.

Dig deeper. You can read the full results of Google’s study here.

Why we care. The shift towards privacy-preserving interest-based audience solutions represents the future of digital advertising. As third-party cookies are being deprecated, embracing innovative ad solutions that protect user privacy is crucial to maintaining ad performance, meeting consumer expectations, and supporting business growth. By adopting these new solutions, advertisers can ensure continued effectiveness in targeting and conversion rates while upholding privacy standards and staying ahead in a rapidly changing industry landscape.

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