Measurement Insights

Is Google’s Cookie-Based Tracking Solution the Real Deal? Here’s Our Take.

According to a recent statement by Google, their new Federated Learning of Cohorts (FloC) software may be an effective replacement to third-party cookies, which have been collectively phasing-out over the last year. Learn what Ovative’s take is on FloC and what you can do in the meantime while cookie replacement solutions continue to evolve. 

Why is Google Replacing Third-Party Cookies?

Due to sweeping privacy concerns and regulations, browsers have been collectively phasing out cookie-based tracking, which marketers have used for decades to analyze users’ individual browsing behavior to make informed targeting decisions. This shift has forced advertisers to find new solutions in order to view their customers’ path to purchase and measure the impact of marketing. For more information on what this means for the modern-day marketer, check out Alex Meyers’ article Death of the Cookie.

What is FLoC and How is it Different Than Cookie-Based Tracking? 

Still in the testing phase, Google’s API software would exist as an extension of Chrome and use machine learning algorithms to group users into cohorts based on their browsing behavior. Theoretically, this would hide an individual user in the larger crowd, therefore protecting the user’s privacy. A potential effective replacement for cookies, simulations show that advertisers can expect to see at least 95% of the conversions per dollar spent when compared to cookie-based tracking.

What is Ovative’s Take On This? 

Though a replacement for third-party cookies will undoubtedly play a large role in personalized marketing and measurement of marketing at the individual level, wide adoption of any one solution will take some time. While Google’s potential solution is in the early stages, find out what the experts at Ovative are thinking about FloC based on information released to date.

1. Limited Individual Targeting

FLoC relies on probabilistic identifiers, which aggregates large groups based on anonymous data points, rather than deterministic identifiers which are based on identifiable data about a specific user. Because there is no finite way to determine who the data points belong to with probabilistic identifiers, this solution does not solve for measurement at the individual level. Privacy changes will continue to create holes in multi-touch attribution data that will need be filled with additional measurement tools like media mix modeling.

2. Limited Responsive Ad Granularity

FLoC’s non-user level targeting may limit the granularity at which responsive ads are tailored to specific users.

3. Incrementality Testing Challenges

Without the ability to target specific users, it may be more difficult to run incrementality tests through Google and other platforms that previously relied on cookies. This will likely increase the popularity of Geo-based incrementality testing, which relies less on cookies but is also less than perfect depending on granularity.

4. Google-Specific

Since this is a Chrome extension, this would push marketers to be more Google-centric with their media spend, which could impact browsers like Safari and Firefox.

What Should You Do in the Meantime? 

This limbo period is an opportunity for marketers to leverage other tools available to them. For now, we advise grounding your media strategy with first and zero-party-data, to avoid any disturbances with the cookie phase-out. Using data your customers have chosen to provide you is more likely to be persistent, accurate, and privacy protected.

For more insights, keep an eye out for Google and industry updates on FLoC and for updates from Ovative on evolving cookie-based tracking solutions.

Ovative is a digital-first media and measurement firm seeking to transform the measure of marketing success. At Ovative, we help brands move the needle. We are curious. We value your brand. We want to see you succeed. Connect with us to learn more! 

SOURCES: Death of the Cookie, Axios, AP News, admonsters


Will Silva

Analyst, Measurement Solutions

About the Author

Will is an Analyst on the Measurement Solutions team at Ovative.

Sarah Chang

Sarah Chang

Analyst, Consulting

About the Author

Sarah Chang is an Analyst on the Consulting team at Ovative.

Kaylie Hanson

Analyst, Measurement Solutions

About the Author

Kaylie is an Analyst on the Measurement Solutions team at Ovative.

Dale Nitschke

Dale Nitschke

CEO & Founder

About the Author

Dale is the Founder and CEO of Ovative. After years of operating a large omni-channel business and leading a customer data initiative, Dale knew there was an opportunity to create a marketing firm that helped clients become more customer centric and drove better performance outcomes. A gap existed between business consultancies and advertising agencies that modern marketing approaches demand. He also believed that a strong, healthy culture could attract and develop smart, talented team members. In 2009, he formed Ovative to bring media, measurement, and consulting together under one roof to enable an enterprise approach that drives more revenue and grows clients’ customer base.

Prior to founding Ovative in 2009, Dale spent 23 years at Target Corporation where he served as President of Target.com and grew the ecommerce business from start-up stage to a $1 billion+ business and established the foundation of Target’s Guest database capabilities. Previously he served as SVP Merchandising at the Department Store Division of Dayton Hudson. Dale has advised retailers and brands globally on business, growth, marketing, and measurement transformation strategies.

Outside of Ovative, Dale is a leader on topics including business strategy, change management, and team leadership. He serves on the board of Allergy Amulet and on the Dean’s Advisory Board of the Wisconsin School of Business at UW-Madison.  He enjoys spending time with his family, up north in northern Wisconsin, playing golf, and cheering on Wisconsin sport teams.

Annie Zipfel

Executive Vice President, Media

About the Author

Annie is the Executive Vice President of Media at Ovative. She oversees delivery and growth across paid and owned media (digital, traditional, and retail media) and creative services.

Annie has more than 30 years of experience in media, brand management, insights/analytics, marketing, and product. She has also developed large, high-performing teams and built new measurement capabilities. Annie led the marketing team at Andersen Windows & Doors, leading the digital, social, content, customer insights, and creative functions. Prior to that, Annie served in multiple marketing leadership roles at Starbucks, REI, Target, and General Mills, with a keen focus on brand, media, insights, analytics, and measurement.

Annie is an industry leader in brand management, customer insights, e-commerce, social media, and analytics. She enjoys hiking, traveling, cooking, fishing, and spending time with her sweet dog and two sons.

Bonnie Gross

Executive Vice President, Talent Services

About the Author

Bonnie is the Executive Vice President of Talent Services at Ovative. She is responsible for attracting and retaining top talent and creating a culture in which our team thrives personally and professionally. Under Bonnie’s leadership, Ovative has defined an industry leading leadership and development program and transformed our approach to talent recruitment with a focus on diversity, equality and inclusion. Prior to her current role, Bonnie led Ovative’s Client and Business Development team overseeing client satisfaction and new growth opportunities.

Before joining Ovative in 2014, Bonnie spent 13 years at Target Corporate as the VP of digital and Digital Marketing where she led the launch of Cartwheel, an industry-leading social shopping application. Bonnie was the VP of Marketing for Fingerhut for 15 years prior to joining Target.

Steve Baxter

Steve Baxter

Executive Vice President, Media

About the Author

Steve is the Executive Vice President of Media at Ovative. Steve oversees delivery and growth across paid digital media, owned digital media, traditional media, marketplaces, and creative services. He has been with the company since 2010 and launched Ovative’s media practice in 2012.

Prior to joining Ovative, Steve worked at Target for 8 years where he led development of Target’s CRM initiatives, Digital media analytics and Target’s Media Network. In 2005, Steve developed Target’s proprietary in-house capabilities to both measure in-store sales impact from digital brand investments and personalize marketing messages across both digital and non-digital channels.

Steve is an industry leader on topics including marketing, advanced measurement, ecommerce, and monetization. Steve enjoys fishing, camping, golfing and trying to stay competitive in any sport with his three boys. Steve enjoys escaping to the MN north shore with his wife, boys and dog whenever possible.

Steve Benson

Steve Benson

Chief Financial Officer

About the Author

Steve is the Chief Financial Officer of Ovative. Steve is responsible for the company’s IT, corporate accounting, treasury, tax, financial planning and analysis, and Business Operations

Prior to joining Ovative, Steve provided finance and accounting advisory services to clients. Before that, he spent 23 years at Target Corporation, leading Finance and Accounting teams.

Steve enjoys distance running, woodworking, and traveling. Steve and his wife have two sons, and they enjoy escaping to the Minnesota north shore.

Shelby Tietel

Senior Analyst, Measurement Solutions

About the Author

Shelby is a Senior Analyst on the Measurement Solutions team at Ovative.

Tyler Crosby

Manager, Measurement Solutions

About the Author

Tyler is a Manager on the Measurement Solutions team at Ovative.

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