BY Kadima Digital
As it continues phasing out browser cookies, Google is forging ahead with its third-party cookie replacement technology, the Federated Learning of Cohorts (FLoC).
By grouping people with similar interests, FLoC offers a solution that will deliver relevant ads; resulting in long-term changes which will affect how online advertising is managed.
While permitting marketers and publishers to target specific cohorts, FLoC provides additional privacy since data is retained on users’ machines instead of servers.
FLoC can be used to display ads to individuals who have been identified, via their browsers, as frequent visitors to certain advertisers’ sites or have shown interest in relevant themes.
FLoC can influence ad auction bidding behavior by using machine learning models to estimate the likelihood of a user converting, based on their cohort.
FLoC enables sites to recommend specific content to users while similar content can be proposed to other visitors belonging to the same cohorts.
FLoC cohort information can be obtained by advertisers for a variety of digital marketing objectives, while individual user data will remain locally in the browser, revealing only the cohort ID.
Google has disclosed that tests of FLoC have yielded encouraging results – marketers should anticipate about 95% of conversions for dollars spent versus cookie-based advertising.
Adding a degree of anonymity, Google FLoC eliminates the individual and replaces it with cohorts based on shared interests. This approach may help address the growing issue of user privacy.
After the Google FloC’s implementation, marketers may need to accept that targeting will not be as precise. Publishers will, however, still be permitted to employ first-party cookies.