FLoC vs. Topics vs. Shared Audiences: Understanding Privacy Sandbox Solutions

In 2024, there are many questions about this tool, so in this article you will find a simple way of explaining the topic.

What is Privacy Sandbox?

Privacy Sandbox is a Google initiative that aims to develop new technologies that protect user privacy while still allowing businesses to run successful online operations. The goal is to create a more open and sustainable web ecosystem. Privacy Sandbox is like a new set of rules for the advertising industry to keep your privacy safe.?

What are FLoC, Topics, and Shared Audiences?

FLoC (Federated Learning of Cohorts), Topics, and Shared Audiences are all Privacy Sandbox proposals that aim to address the challenges of online advertising in a privacy-first way.

• FLoC groups users with similar browsing interests into cohorts, allowing advertisers to target these groups without tracking individual users.
• Topics assigns each user a set of topics based on their browsing history, which advertisers can then use to target relevant ads.
• Shared Audiences allows advertisers to share audience lists with each other without revealing the identities of individual users.

How do these solutions work?

All three solutions use on-device processing to keep user data private. This means that data is processed on the user's device, rather than being sent to servers.

• FLoC uses a technique called federated learning to generate cohorts without revealing individual browsing data.
• Topics uses machine learning to identify user interests based on their browsing history.

In August 2022, Ad Manager began testing the Topics API in a Chrome origin trial. Since July 2023, Topics data from Chrome traffic has been used in Ad Manager, and Google will continue to analyze the practical value of this API for its partners.

• Shared Audiences uses cryptographic techniques to allow advertisers to share audience lists without revealing the identities of individual users.

What are the benefits of these solutions?

• Privacy protection: These solutions are designed to protect user privacy by keeping data on-device and using privacy-preserving techniques.
• Relevancy: These solutions can help advertisers deliver more relevant ads to users, which can lead to better results for both advertisers and users.
• Sustainability: These solutions help to create a more sustainable web ecosystem by reducing the reliance on third-party cookies and other tracking technologies.

Privacy Sandbox for the web will phase out third-party cookies and limit covert tracking. New standards will provide publishers with safer alternatives to existing technologies, helping them continue to grow their digital businesses without compromising user privacy.

Integration of Ad Manager and Privacy Sandbox for the web

Google is currently working on new privacy-preserving technologies in Ad Manager, where three Privacy Sandbox APIs for the web are being tested: Protected Audience API (formerly known as FLEDGE), Topics API, and Attribution Reporting API.

Protected Audience API?

When the Protected Audience API becomes generally available in the Chrome browser, Ad Manager will gradually increase the amount of traffic included in the test. As the percentage of traffic increases, Google will monitor changes in publisher revenue and stop increasing traffic if it sees a negative impact on revenue.

Google expects to test the Protected Audience API on up to 10% of Chrome traffic soon.

Attribution Reporting API?

The Attribution Reporting API is a contribution from the Chrome development team to the Privacy Sandbox initiative. Google's solution aims to improve user privacy when tracking conversions. This API allows advertisers to collect campaign data and use it for optimization without using third-party cookies.

Google has added support for the Attribution Reporting API to Ad Manager because it is committed to investing in and creating alternative solutions for the online advertising ecosystem that ensure user privacy. This API links conversion actions with Google's partner resources, allowing advertisers to get more accurate data on ad performance and publisher inventory value.

Privacy Sandbox has generated both excitement and skepticism within the adtech industry. While it offers promising solutions for maintaining addressability in a cookieless future, concerns exist around its complexity, lack of transparency, and potential to give Google an undue advantage in the adtech space.

Adtech companies are actively testing and adapting to the Privacy Sandbox APIs. However, challenges remain, such as adjusting business models to new protocols, limited visibility into Chrome debugging processes, and the uncertain adoption rate by the wider industry.

Questions about Privacy Sandbox answered for publishers

Does Ad Manager support Privacy Sandbox APIs on video inventory?

Yes, Ad Manager supports Topics API for all inventory using GPT tags, including outstream video ads. Google plans to add support for in-stream ads through the IMA SDK.

Does Ad Manager support native ads through Privacy Sandbox APIs?

Yes, Ad Manager supports native ad formats when testing the Topics API. Google is currently exploring ways to support the Protected Audience API and is actively working to implement the Attribution Reporting API for native ad serving.

What Protected Audience auction reports are available to publishers in Ad Manager?

Currently, Ad Manager does not provide publishers with reports on impressions won by non-Google auctions, but Google plans to implement such reports in the future.

Are there any steps planned to mitigate the additional latency due to the use of the Protected Audience API?

Yes, Google is taking a comprehensive approach and looking at the publisher's overall revenue. Google's goal is to show publishers the full benefits of using the Protected Audience API. The additional revenue they will receive from Protected Audience demand sources should exceed the costs associated with the delay due to the additional Protected Audience auction.

Do publishers need to enter into additional agreements in Ad Manager to use the Privacy Sandbox APIs?

No, publishers are not required to enter into additional agreements to use the Privacy Sandbox APIs with Ad Manager.

How can publishers manage the quality of creatives in ads served using the Protected Audience API?

Publishers can continue to use their existing safeguards to block ads from participating in the Ad Manager open auction, including ads served using the Protected Audience API. Additionally, ads served using the Protected Audience API are displayed in the Ad Review Center, where publishers can block individual creatives.

Conclusion

The Privacy Sandbox initiative is a promising solution, where user privacy and ad effectiveness can coexist. By utilizing on-device processing and privacy-preserving techniques, solutions like FLoC, Topics, and Shared Audiences could build a more sustainable web ecosystem. Ad Manager's integration with these APIs ensures a smooth transition for publishers, providing them with alternative solutions to maintain their digital businesses while prioritizing user privacy. While questions and technical considerations remain, Google's commitment to ongoing testing and collaboration with publishers promises a new approach that benefits both users and businesses.