This post was co-written by Susie Marino and Kristen McCormick. As third-party cookies are being phased out, Google has been trying to find a way to keep showing people relevant ads while maintaining their privacy—a win for advertisers and consumers alike. Initially, their solution was FLoC. However, Topics API is now poised to take over as the key player in cookieless targeting. Continue reading to discover:
- A detailed explanation of the Topics API and its functionality.
- Perspectives from the PPC community on this development.
- Actionable steps for advertisers.
At the end of this post, we’ve incorporated a Topics FAQ section.
In a Nutshell
- Topics API is replacing FLoC as a superior method for interest-based advertising that prioritizes privacy.
- Instead of grouping users into cohorts, it will assign them topics, which they can view and adjust.
- Advertisers view this as a compromise but have expressed concerns about the breadth of the topics.
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Image source](https://blog.google/products/chrome/get-know-new-topics-api-privacy-sandbox/)
Understanding Interest-Based Advertising
To grasp the current situation, it’s essential to understand interest-based advertising (IBA). IBA refers to the practice of delivering ads to users based on their inferred interests, determined by the websites they visit. This approach allows advertisers to connect with the right audiences and ensures that users see relevant ads. However, the information used for this purpose is often collected through third-party cookies, which are known to compromise privacy and are being phased out.
Looking Back at FLoC
FLoC (Federated Learning of Cohorts) was Google’s initial attempt at interest-based targeting without relying on third-party cookies. We delve into the specifics of FLoC in another article, but in essence, it would group users into cohorts each week based on their browsing history and then anonymously report these cohorts back to websites for advertising purposes. However, FLoC had drawbacks, including a lack of clarity and transparency for users, as well as some serious security vulnerabilities. Topics API aims to address many of these issues.
Demystifying Topics API
On January 25, Google announced that they’re shifting from FLoC to Topics API as the optimal solution for interest-based advertising. This decision is based on insights and feedback from the community gathered during the earlier FLoC trials. While we cover more ground in our [Topics FAQs](#Topics FAQs) section below, here’s a concise overview: Unlike FLoC, which assigned cohort IDs to users weekly, Topics API will assign three to five potential topics of interest to users every three weeks, derived from their browsing history. Subsequently, the API will share three of these topics with participating sites, which can then utilize them for advertising.
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For instance, a site focused on skiing and snowboarding would be categorized under the “Sports” topic. Importantly, topics are designed to exclude potentially sensitive categories like race, sexual orientation, and religion. Currently, there are 350 topics, but this number is expected to increase to hundreds or even a few thousand. Websites have the option to opt out of being assigned a topic, and users will have the ability to view and manage the topics assigned to them.
The PPC Community Weighs In on Topics API
As the saying goes, “it’s complicated”—and the Topics API certainly fits the bill. PPC experts already have a lot to say about it. Here are three prevailing sentiments I’ve observed within the PPC community:
A Step in the Right Direction, but More Information Is Needed
On a positive note, Aaron Levy, Tinuiti’s Paid Search lead, acknowledges Google’s effort to find a middle ground between user privacy and advertiser needs—even though the platform hasn’t provided all the answers yet. Some thoughts on Google’s announcement of topics from myself and some of my peers. TLDR: A lot of fuzziness is still present, but it’s encouraging to see Google working with broader industry feedback and working towards stability.
View full tweet
In the Tweet’s Search Engine Land article, Aaron continues:
It’s odd to call this an advantage, but I view anything that launches with a higher likelihood of stability and lesser likelihood of mass opt-outs a win.
I share this sentiment. The phasing out of third-party cookies is inevitable. At this point, the PPC community will embrace any viable solution.
Not Entirely Unexpected
On a more neutral note, Simon Harris, Director of Trade Desk at DPG Media, isn’t surprised by this development, considering the history of such efforts. He sees it as a “common-sense approach.”: Here’s what he Tweeted:
- People were talking about this approach (ages ago, prior to the OG) so much so I initially & incorrectly thought it was the route Google would go. I assumed they didn’t as it’d be seen as anti-competitive to anyone who could make sense & $ out of a Cohort ID & Bidstream data.
- Interesting to see Google have come full circle as pre-canned Topics was initially discussed prior to the first OG. From a consumer POV it is good to see them take a common sense approach here.
- Google was talking about this back in August & the rumors have been building for weeks. So not really a surprise
View full tweet
This aligns with Aaron’s earlier point that some form of compromise was necessary. FLoC was already known to have shortcomings, so it was only a matter of time before Google introduced an alternative proposal like Topics.
Concerns about Topic Targeting Accuracy
Many advertisers believe that the current list of topics lacks the desired level of precision. In all fairness, Google can only create a limited number of topics before they become overly specific. While advertisers might want more granular topic categories, I think that could lead Google down a rabbit hole of trying to cater to every single niche market. That said, I understand the concern raised by Jayesh Easwaramony, founder of Spectra Global, who argues that targeting will become less effective. He illustrates this point with an example:
View full tweet
While the comic humorously highlights the broadness of the “Fitness” topic category, it underscores a valid point. Someone casually browsing a fitness-related website on New Year’s Day is entirely different from a professional personal trainer. It’s highly likely they would be patrons at different businesses as well.
What Advertisers Can Do
Wondering what all of this means for your advertising strategy? Here are some recommended steps:
- Focus on First-Party Data Collection: Explore various methods to collect first-party data and even zero-party data (this is #4 in our list of 2022 marketing trends).
- Stay Informed about Topics API Updates: Google has a page dedicated to the Privacy Sandbox and we’ll keep you posted as well!
- Maintain Open Communication with Clients: If you’re an agency or consultant, ensure your clients are well-informed.
Google Topics API: The Verdict Is Still Out
It wouldn’t be a proper analysis without my perspective. I believe the three points mentioned above encapsulate the general sentiment among advertisers: the true value of Topics remains to be seen. Here are the key takeaways:
- Surprise Factor: None.
- Topic Breadth: Too broad.
- Alternative Options: Not really. While Topics is a necessary step for Google, it’s too early to determine its effectiveness for advertisers.
Topics FAQs
There are many questions surrounding the Topics API, Google shares more information on Topics here, but here are some important ones.
When will the Topics API be rolled out?
In its official announcement, Google indicated that a trial of Topics and user controls would be launched in Chrome “soon,” allowing “developers and the ads industry to try it out.” The final design of the user controls and other technical aspects of how Topics works will depend on the feedback received during the trial.
How many topics will there be?
Google’s initial estimate is around 350 topics, but the final number is expected to reach a few hundred or even a thousand. Find the full list here.
Will users be able to see their assigned topics?
Yes, users will have full control over this feature. They can view their assigned topics, remove any they dislike, or disable the feature entirely. Chrome will also provide a comprehensive list of available topics.
What are “participating websites”?
This term refers to websites that choose to utilize the Topics API, meaning they will allow Google to assign them a topic. Sites have the option to opt out of topic assignment, but they will not receive any topic data in return.
What data determines topic assignment?
Google assigns topics to websites and then tags users with a topic based on the sites they visit most frequently. As Google explains, “The calculation of the most frequent topics occurs entirely within the browser, without sharing data with external servers. The resulting topics may be sent to servers in an anonymous way for sensitivity and abuse analysis.”
Where can I find more information about Topics?
Google offers several helpful resources for further exploration, including:
- Light: Quick explainer with a video
- Medium: Google’s Topics API coverage in their Privacy Sandbox documentation
- Full throttle: The Full Technical Explanation