The digital advertising landscape has seen significant changes due to the enforcement of various regulations affecting user consent and the handling, security and use of personal data. Notably, the Digital Markets Act (DMA) (March 2024) imposes new requirements on major companies like Google, Amazon, Meta and Microsoft, designating them as ‘gatekeepers’. As the same time, the legislation clearly puts an obligation on such gatekeepers: they are responsible for obtaining user consent for their core platform services. Consequently, Google sees a clear need to implement Google Consent Mode V2 to make sure that they themselves adhere to privacy legislation.
Consent Mode, developed by Google, enables the transmission of consent signals from websites cookie banners directly to Google. This ensures that user consent preferences of the user are, in fact, honored. In practice, this tool provides a direct line of communication between the websites, where the user has given their preference to agree to share personal data, directly with Google for advertising purposes and personalization. It is an effective and efficient tool that streamlines procedures while at the same time providing users with more control regarding their personal data. When the user does opt to provide consent, Google can utilize these tools for detailed analytics. Conversely, if the user chooses not to consent, Google restricts the use of cookies and identifiers respectively.
The key enhancement lies in the addition of two new consent states: ad_user_data and ad_personalization, which reflect a user’s consent status.
- ad_user_data: whether the user consented for advertising activities, it requires a pro-active act of the user where the users must actively agree to share their data with Google via a consent banner interaction on website of respective business.
- ad_personalization governs the use of data for personalized advertising, such as remarketing. This also requires a pro-active choice to provide consent via cookie banner interaction on website of respective business.
For businesses who wish to maintain their use of Google Ads within the European Economic Area (EEA) markets, embracing or upgrading to Consent Mode v2 is simply necessary. This ensures accurate conversion tracking and efficient optimization of advertising expenditure. Failure to implement Google Consent Mode v2 by March 2024 means missing out on valuable insights. Consequently, businesses would analyze website performance and optimize Google Ads campaigns based on incomplete, incorrect and even inaccurate data, which evidently demonstrates a problem for businesses relying on such information. Moreover, without Consent Mode v2, advertisers won’t be able to add new EEA users to their target lists post-March 2024. This severely impacts the effectiveness of remarketing and engagement campaigns, as well as all metrics pertaining to EEA users. Therefore, lacking Consent Mode v2 renders measurement, reporting, audience list management, and remarketing efforts in the EEA largely ineffective.
To conclude, to continue to enjoy the full workings of Google Ads, it is necessary to embrace the Google Consent Mode V2. For more information, do not hesitate to contact us at info@dpoconsultancy.nl.
Source: Google announces Consent Mode v2 – What does it mean? (cookieinformation.com)
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