Head in the Sandbox: Google reviews Android user tracking with subtle jab at Apple
Google has revealed proposed restrictions to the way it tracks users across apps on its Android system, in what appears to be a response to a similar move by Apple last year.
In a blog post from Anthony Chavez, VP, product management, Android security & privacy, he indirectly referenced Apple’s own roll-out in the reasoning for its approach.
Google and Android: Creating a safe space or following the bucks?
“We realise that other platforms have taken a different approach to ads privacy, bluntly restricting existing technologies used by developers and advertisers. We believe that — without first providing a privacy-preserving alternative path — such approaches can be ineffective and lead to worse outcomes for user privacy and developer businesses.”
Despite initial reaction last year following the move by Apple, its ad network revenue grew by 238% in 2021 compared to 2020 against the backdrop of the new privacy restrictions, according to a report from market analyst firm Omdia overnight.
It is suggested that Apple’s advertising business is now worth over US$3.7 billion (A$5.14 billion) per year, using its new user privacy regulations to drive business through its own network, and this could be a similar motivation for the Alphabet company.
Mutiny’s Henry Innis furthered this notion to Mumbrella: “Businesses that own phones have long resented not getting a cut of ads shown on their hardware.”
“I suspect when you look at Apple’s privacy push and their ad revenue that the motives were not altogether altruistic. My bet is any rational business would look at their ad growth and likely see privacy as a similar opportunity.”
Chavez continued that digital advertising plays an key role in keeping 90% of the apps on Google Play free, “providing access to valuable content and services to billions of users”, but in order to ensure a health app ecosystem, “the industry must continue to evolve how digital advertising works to improve user privacy”.
Henry Innis, co-founder and partner at Mutiny
As a result, comes Google’s Privacy Sandbox on Android, “with the goal of introducing new, more private advertising solutions”. This will limit sharing of user data with third parties and “operate without cross-app identifiers, including advertising ID”.
“The Privacy Sandbox on Android builds on our existing efforts on the web, providing a clear path forward to improve user privacy without putting access to free content and services at risk”, Chavez continued.
Google said the aim with the Privacy Sandbox is to develop “effective and privacy-enhancing advertising solutions”, and doing so will include working closely with regulators. Chavez pointed to public commitments made for the Privacy Sandbox to ensure it doesn’t give preferential treatment to Google’s ads products or sites.
Google is currently in the middle of a global anti-trust case in the United States over its ad-tech business.
“We’ll apply these principles to our Android work as well, and continue working with the U.K. Competition and Markets Authority, and others.”
Vice president of product marketing, ads and business at Facebook, Graham Mudd commented this morning that the “long-term, collaborative approach” to privacy-protective personalised advertising is “encouraging to see” from Google.
Encouraging to see this long-term, collaborative approach to privacy-protective personalized advertising from Google. We look forward to continued work with them and the industry on privacy-enhancing tech through industry groups.https://t.co/UdrlTLJmsz
— Graham Mudd (@grahammudd) February 16, 2022
This follows comments from Facebook that Apple’s iOS privacy change will result in a US$10 billion (A$13.9 billion) revenue slash in 2022.
Jonas Jaanimagi, Tech Lead at IAB Australia
Technology lead at IAB Australia, Jonas Jaanimagi told Mumbrella: “Ongoing adherence from the larger platforms to privacy-by-design has seen Apple releasing several new privacy features through 2021 and Google’s Chrome already this year have provided a series of significant updates to their proposals for third-party cookie deprecation.
He said that it is “very clear that Google are gradually aligning their approach across all of their products & devices and in every one of their consumer-facing environments.”
“However, whilst the intentions for prioritising consumer privacy are obviously critical, the impact on both publishers and marketers should not be underestimated in terms of targeting, measurement and attribution across all devices.”
Jaanimagi said that the IAB recommends that the industry “fully engages in the process of reviewing all the initial design proposals, participates in any available testing processes (whether directly or via key tech partners) and looks to clearly share any feedback to Google’s dedicated developer sites”.
“Full-scale testing of the beta releases of these proposals will commence in 2023 and importantly it’s also worth noting that Google’s Advertising ID (GAID) will not be removed from Android until 2024 at the earliest – giving everyone at least some time to fully test for these alternative approaches. IAB Australia will be providing more information and guidance on this process (and the impacts) as the various Privacy Sandbox proposals across both the web and in-app evolve.”
This month, Google reported that its advertising pulled in US$61.24 billion (A$85.86 billion) in sales in Q4 2021, up 33% year-on-year. And while Google’s ad business continues to subsidise its cloud expansion, Google Cloud revenue grew 45% year-on-year.
Got a tip?
Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
Linkedin
topics
Anthony Chavez
Apple
Data privacy
Google
henry innis
IAB Australia
Jonas Jaanimagi
Mutiny
Privacy Sandbox
Have your say