Google to stop selling ads

Google has announced it will stop selling ads based on a person’s individual browsing across websites, a move that could shake up the digital advertising industry as consumers call for more privacy online.

Last year, the search giant said it would phase out third-party cookies, those little bits of code that can let advertisers track user history across the web. Once those are gone from Google’s Chrome browser next year (2022), the company made it clear that it won’t use or invest in alternative tracking technologies that could identify people at an individual level.

The announcement comes as Google’s search and targeted advertising business is under increasing pressure by lawmakers and state and federal prosecutors. The tech giant currently faces three major antitrust lawsuits, including a landmark case by the US Department of Justice and another complaint by a bipartisan coalition of states.

Google’s announcement is part of the search giant’s push toward a “privacy sandbox,” which is designed to let publishers target ads based on people’s interests without infringing on their privacy. The company has touted breakthroughs in AI like “federated learning,” which relies on Google’s systems getting more innovative by using raw data on people’s devices, instead of transferring it to the cloud, so Google doesn’t see the information but still learns from it.

Google’s declaration to not use alternative tracking technologies is sure to ruffle others in the ad tech industry who plan to replace third-party cookies with other software that can closely track individuals, like one method that uses people’s email addresses.

Still, there are limitations to Google’s update. The changes won’t apply to “first party” data, which companies collect directly from consumers. That includes Google’s own products, like Gmail, YouTube, and Chrome. The changes will also only apply to websites and not mobile phones, where consumers are increasingly spending their time.

Over the past few years, the tech industry has been forced to move toward privacy as consumers and lawmakers have raised concerns over user data abuses. Since December, Apple has required app developers on its iOS platform to provide “nutrition labels” that tell people what personal data their apps are collecting, like financial information, contacts or browsing history. Google, however, hasn’t provided labels for most of its apps.

Another change by Apple, rolling out in the coming months, requires developers apps to ask people for permission to gather data and track them across apps and websites. This upcoming change has upset Facebook, prompting a war of words between CEO Mark Zuckerberg and Apple CEO Tim Cook. Google, meanwhile, is reportedly considering a less “stringent” approach to giving users options about app tracking in its Android operating system.

Bottom Line: Apple makes its money from selling phones and computers, where Facebook relies on advertising revenue which is the source of its $86 billion in annual targeted ads. Facebook is clearly unhappy with Apple. They’ve run full-page newspaper ads in the Wall Street Journal, the New York Times, and The Washington Post arguing that Apple’s update will harm small businesses and consumers. Facebook even launched a website where small businesses could speak up and share their feelings. https://www.facebook.com/business/apple-ios-14-speak-up-for-small-business

Read the entire story about the Facebook and Apple feud here:
https://www.cnet.com/news/facebook-vs-apple-heres-what-you-need-to-know-about-their-privacy-feud/

If you don’t remember hearing about Apples “nutrition labels” for apps:
https://www.theverge.com/2020/11/5/21551926/apple-privacy-developers-nutrition-labels-app-store-ios-14