Google Permission-Based Marketing: Will it Mean a Better Return for Every Ad Dollar Spent?

At its recent Google I/O developer conference, the search engine giant announced that it will launch a new tool later this year to give users around the world more control over the ads they see. As part of its new focus on user-centric policies, My Ad Center will allow Google users to moderate the types of ads that appear on their screens. This means users can customize their ad viewing experience and choose which brands they want to see in advertising, YouTube, search, and the discovery feed. Users will also have the ability to choose the degree of personalization they are comfortable with, which means no more pop-up ads that reflect your searches and conversations.

Given the ubiquity of Google ads, that’s obviously good news for increasingly privacy-conscious customers, but it’s much more nuanced when it comes to advertisers, whether brands themselves or the channels on which they advertise.

Aruni Panda, VP – Digital, Carat India, believes that for brands this is a great opportunity to better understand their users and develop a greater connection with them, which will help undo any impact to long term. “It can inspire brands to develop a deeper understanding of, and respond to, a user’s expectations of a brand in more meaningful ways, which goes beyond the personalization of communication based on data signals or demographic information,” he said.

Abraham Varughese, CCO, Digitas, agrees, saying: “While the immediate reaction to putting more control in the hands of users is to see it as another hurdle for advertisers to overcome, I think it could lead much more accurate audience information.”

Knowing the type of branded content a consumer likes to interact with – even if it disrupts their online business – will help us create work that has the potential not to be ignored. Ultimately, this leads to better retention and engagement.

For example, Jigar Patel, co-founder and CEO of Indian beauty brand Brillare, believes that these new changes in advertising policy will be a game-changer in the crowded D2C space in India.

“With the launch of permission-based marketing, users will now have control over which category of ads they want to see, giving brands a more defined target audience and thus delivering a better conversion rate for every advertising dollar spent. Having a more targeted audience will allow for more conscientious marketing from brands,” says Patel, adding, “Consumers are likely to already know the category they prefer to see ads for and can easily block if the ad they see isn’t there. is not intriguing, so it must be able to hold the customer’s attention.

However, these benefits will come at a cost, which will be highly personalized advertising content to make an impression. Akshae Golekar, co-founder of Optiminastic Media, says the cost of advertising will now be higher. “Obviously, a company like Google was expected to move towards a democratic Web 3.0, because it’s a step towards transparency and a cookie-free future for the Internet. We all go out there and it’s the first time a platform like Google has made a decision to allow users to disclose their privacy information to brands they know. However, since the data is owned by one party, ads will be at least 20% more expensive. »

Agreeing that ad spend will most likely increase, Anand Nair – Co-Founder and CCO, 4AM Worldwide, notes that Google’s My Ads center is unlikely to have a significant impact on brands and platforms in the near term. . “Advertising rates could increase for platforms to maintain their overall revenue. However, since most users may not make the effort to access My Ads Center and update their preferences, business will likely continue as usual for the time being,” he says. , adding that we need to be aware of the evolution of spectator empowerment.

“Platforms will increasingly provide features that put viewers in control and brands will need to become more targeted in their approach. I see a much more significant impact in the medium to long term,” he says.

Sadhvi Dhawan, Group Media Director of Blink Digital, adds that for brands, this will limit inventory options for advertising and being able to target their audience solely on the basis of affinity and topic without any filters. behavioral or demographic will not only render their advertisements ineffective. for brand image, but will lead to a much lower ROAS.

“For publishers (website hosting ads), this could lead to an imbalance between demand and supply, because for some brands/topics there could be a huge demand from users, while for others, there might be none. This will make forecasting their inventories even more difficult, affecting advertisers’ media planning,” Dhawan notes, adding, “Brands with less consideration and intent depending on the Google’s policy score may face a potential reach shortage and so will either have to wait longer or look for alternatives to create impact on their audience and scale their brand metrics.”

Siddharth Devnani, co-founder and director of SoCheers, says the content creation process for advertisements could see changes at the brand level because of this, noting, “Advertisers will have the ability to target a very niche audience , but will also need to create highly personalized content for a different set of consumers. Any irrelevant content or targeting will see a drop in impressions and reach. Additionally, the ability for users to easily block any ad will be a greater measure. concrete impact or irrelevance of ad content and targeting.”

Panda sums it up by noting that this can have drastic implications for advertisers in the long run, which can range from a negative impact on advertising effectiveness to a potential loss of revenue. Brands may suddenly realize that the group of users they constantly interact with are not interested in them or never have been.

“However, in the short term, it is less likely to have a negative impact, simply because adjusting to it will take time. Even today, ‘Stop showing me this ad’ is not used by many “, he concludes.

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