Google’s Two-Hop Proxy Development and what it means for Advertisers!
Let’s dive into an emerging topic in the realms of online advertising – Google’s development of a new network protocol named the two-hop proxy. Aimed at enhancing the privacy of Chrome users, this development could have vast implications for advertisers. Here is what you need to know:
Implications For Location Targeting
Targeting your ads by location is an effective way to reach potential customers in specific areas. However, the implementation of Google’s two-hop proxy may change this scenario. Futurely, advertisers may have to rely solely on Google-designated regions for their target markets, potentially limiting the accuracy and effectiveness of location-based ad campaigns.
Increased Difficulty in Distinguishing Genuine Traffic
As Chrome begins to utilize the two-hop proxy to connect its users to websites, it will effectively put a cloak on their identities. Consequently, advertisers could face challenges in distinguishing between genuine user traffic and automated bot traffic. This anonymity could make it more difficult to track user behavior and optimize ad campaigns accordingly.
Potential Increase in Advertising Costs
By implementing the two-hop proxy, Google is actually enhancing its collection of uniquely valuable location data. The downside for advertisers? This could potentially lead to an increase in advertising costs.
Potential Monopoly in Data Collection
Should other search engines fail to implement similar protocols, Google could build a monopoly on this uniquely valuable data. The lack of competitive data available to advertisers could stifle competition in the search ads space.
IP-based Geolocation under the Two-hop Proxy
According to Google’s documentation, IP-based geolocation is extensively used within proxied third-party traffic to provide relevant content to users and comply with local laws and regulations. Its uses vary from content localization, local cache assignment, to geo-targeting for ads. However, with the two-hop proxy, user IP addresses will be batched and mask their region.
Data Privacy Concerns with Google’s Two-Hop Proxy
Although the new initiative promises to shield user data from advertisers, it won’t necessarily shield user data from Google itself, raising concerns about user data privacy.
Google’s Stand on Privacy Matters
Google’s Privacy Sandbox initiative has already been under scrutiny by the United Kingdom’s privacy regulator, the Information Commissioner’s Office, with the regulator stating that Google needs to do more to protect consumer privacy in its replacement for cookies.
In Conclusion
The two-hop proxy technology is set to significantly impact the landscape of online advertising, but will it be for the better or worse, only time will tell. As an advertiser, stay informed and keep an eye on this development.
