Unlocking effective measurement with Privacy Sandbox
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Nov 12, 2024
Jolyn Yao
Product Manager, Measurement Lead at Privacy Sandbox
The future of measurement is here, and it’s built on privacy. Marketers need effective measurement to understand and optimize performance, and ad tech companies need it to fine-tune solutions and show value to their clients.
But with user privacy taking center stage, traditional measurement methods are evolving. Companies across the ads ecosystem are exploring new signals like first-party data and innovative technologies like the Privacy Sandbox Attribution Reporting, Private Aggregation, and Shared Storage APIs.
This blog post shares how the Privacy Sandbox for web empowers ad tech companies to measure advertising effectiveness while safeguarding user privacy. We'll discuss how these technologies work and provide practical steps to unlock their full potential. Get inspired by real-world examples from ad tech companies using these tools to maximize performance, and discover resources to help you keep pace with the latest advancements.
Measuring effectively with fewer cross-site identifiers
Let’s start with some basics on privacy-preserving measurement. The good news is that privacy and effective ad measurement can co-exist. To gain accurate insights and make informed decisions, marketers and ad tech providers need reliable data that reflects overall trends and is not skewed by outlier data. This approach respects user privacy because it doesn't rely on individual-level information.
To make this possible, Privacy Sandbox uses techniques like:
Aggregation
Data is combined across many users to show overall trends without revealing individual user information.
Noise
Randomized data, or noise, is added to measurement results, making it harder to identify individual users while still providing valuable insights into overall ad performance. The impact of noise (the signal-to-noise ratio) can be customized with levers like volume of aggregated user data contributing to the report or number of event-level reports received.
Reports can be delayed to make it harder to link specific actions to individual users, further enhancing privacy.
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We understand there is no “one size fits all” solution when it comes to measurement, and we’re invested in providing customizable tools that support your unique business needs, without compromising on privacy. Learn more about tailoring these tools in the “If you’re ready to level up” section below.
Understanding and optimizing ad performance
Marketers use attribution reporting to understand ad performance and optimize campaigns. They need to know which ads drive valuable actions, understand which buying strategies are performing best, and measure return on investment. DSPs use this same reporting data to build models that predict which ads are likely to perform well and bid on the best ad placements for their clients.
By leveraging the Attribution Reporting API's flexible reporting options, ad tech companies can fine-tune their bidding models and provide robust reporting and optimization capabilities to marketers—all while safeguarding individual-level information.
Attributing Reporting: How it Works
Step one: When someone views or clicks an ad on a website, the event is recorded with the browser/device.
Step two: If they engage with the advertisers’s site, the conversion is recorded with the browser/device.
Event-level reports provide visibility into individual ad events that drive conversions (e.g., impression X drove conversion type A).
Summary reports provide detailed and flexible aggregated performance reporting (e.g., campaign X had a $100 return on ad spend).
If you’re just getting started:
Check out the Attribution Reporting API’s event-level reports. This reporting mode provides visibility into individual ad events that drive conversions.
Next, explore the Attribution Reporting API’s summary reports for aggregated performance reporting on conversion counts and values. This reporting mode, which generates reports with Aggregation Service, offers additional flexibility beyond event-level reports to measure more conversion types and information about the conversion.
If you’re ready to level up:
Tailor reports to the unique reporting needs of each advertiser with flexible event-level configurations. This includes the ability to measure more conversion types and customize the timing and number of reports you receive.
Explore approaches to increase the signal-to-noise ratio of summary reports by:
Consider blending data from both event-level and summary reporting modes for a more comprehensive view with increased signal-to-noise ratio and metric visibility. Learn how Google Ads is approaching this, alongside other advanced configuration techniques, in their two-part series (Part One, Part Two). Review their encouraging initial results here.
Hear more from ad tech companies using these tools today:
Basis Technologies is harnessing Privacy Sandbox measurement APIs to develop solutions that increase advertisers’ ability to measure the effectiveness of ad campaigns while prioritizing user privacy. We have modified our ad markup and conversion pixels so that the Attribution Reporting API will send us event-level reports, which we have integrated into our conversion reporting dataflows. By empowering our advertisers to effortlessly configure the Attribution Reporting API, we are helping ensure that the industry is better prepared for a future with fewer third-party cookies.
Ian Trider
Vice President of Product (DSP), Basis Technologies
We believe Attribution Reporting API has the potential to become a pivotal source of measurement and optimization data, potentially with more scale than can be garnered using cookies. Iterating and improving upon Privacy Sandbox APIs is only possible through continued testing, which marketers can and should get involved with now, for the benefit of both their campaigns and the wider industry.
John Goulding
Global Chief Strategy Officer, MiQ
Our goal is to provide Yahoo DSP advertisers with comprehensive measurement and insights as we prepare for a future with fewer third-party cookies. As part of our approach, along with our proprietary solutions, we are actively integrating the Attribution Reporting API in the measurement technology of Yahoo DSP. We believe this will empower advertisers with deeper insights into their campaigns and thus better inform future strategies.
Giovanni Gardelli
Vice President of Ads Data Products, Yahoo
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Exploring additional measurement capabilities
Privacy Sandbox technologies can be applied across a number of additional measurement use cases beyond attribution reporting and optimization. For instance, Shared Storage and Private Aggregation APIs can be leveraged together for reach and frequency measurement, allowing you to store impressions in the browser and generate summary reports. Privacy Sandbox is actively exploring reach and frequency reporting approaches for more robust approximations of per-person reach.
Additionally, ad tech companies can experiment with Shared Storage and Private Aggregation APIs for demographic measurement, creative optimization, A/B testing, and more. We encourage you to share your feedback as we build out these capabilities.
Latest developments and recommended resources
In case you missed it, check out the latest measurement advancements, informed by industry feedback. You’ll find case studies with programmatic media partners like MiQ, new features to better serve your needs and ways of working, a recent research study with AdExchanger on cross-platform attribution, and more.
The future of measurement is both private and effective
The technologies, tools, and tips we've shared today are building blocks for innovation across the ad tech ecosystem. An ecosystem where marketers can continue to measure their performance, ad tech companies can continue delivering strong value for their clients, and users feel safe in their online experience. An ecosystem where measurement and privacy thrive together.
So where do you begin?
Identify your measurement needs: Determine the specific data and insights you need.
Research the ecosystem: Explore your measurement data sources (models, platforms, and methodologies) and understand their privacy strengths and limitations.
Dive into the Privacy Sandbox: Explore the technologies and shape their development through testing and feedback. Whether you’re just getting started or looking for ways to level up, this article has you covered. Share it with your teams and create a plan.
Integrate and analyze: Combine Privacy Sandbox technologies with other signals to maximize insights.
The future of measurement is here. Get started today!