Since 2009, Google has faced a series of controversies and privacy-related issues that have garnered significant attention and criticism. The most recent one happened in January 2023, when Google’s cell network provider Google Fi confirmed a data breach, which allowed hackers to steal 37 million customers' data, including phone numbers, account status, SIM card serial numbers and other information related to details about customers’ mobile service plans.
Alongside the data breaches, Google has frequently been accused of violating users’ privacy. In April 2020, the company was sued for at least $5 billion for tracking what people view online and where they browse despite using Incognito mode. Just a few months later, in July, the tech company was also accused by the Australian Competition and Consumer Commission (ACCC) of misleading Australian users about the use and collection of their private data – but the Federal Court dismissed the case in December 2022.
Even with this positive outcome for Google and the fact that, since January 2023, there have been no reported data breaches involving the company or its parent, Alphabet, all these data breaches and privacy violations still affect the brand's image. After all, there is an increased concern regarding data privacy.
According to the Privacy and Consumer Trust (2023), 68% of consumers globally are either somewhat or very concerned about their privacy online and are making choices based on their perceptions of privacy, adjusting their compasses in a world awash in data by deleting apps, withholding information and avoiding purchases when they feel their privacy is at risk.
This is one of the reasons why, for the past years, Google has focused on initiatives concerning privacy. The main one is the Privacy Sandbox, which aims to "create technologies that both protect people's privacy online and give companies and developers tools to build thriving digital businesses". In other words, its core purpose is to facilitate online advertising by sharing a subset of users' private information without using third-party cookies.
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At the same time, Think with Google has released the Marketer's Privacy Playbook to address consumer privacy expectations and impending regulations. In the 31-page guide, Google outlines the importance of providing a meaningful and appropriate value exchange to strengthen customer relationships. The company also highlights that a critical component of a first-party data strategy is integrating data sources and platforms, such as a CRM platform, into Google’s advertising and measurement tools, like Google Ads and Google Analytics.
The public reaction to these two initiatives was polarizing. In January 2021, the UK’s Competition and Markets Authority (CMA) announced that it would investigate the Privacy Sandbox proposal for its potential to stifle competition in the online advertising market and whether it is genuinely in the interest of end-user privacy. However, the Marketing and Advertising Industry favoured the Marketer's Privacy Playbook due to its focus on building relationships with first-party data.
As a marketing professional, I believe we should pay attention to the possible consequences of initiatives like the Privacy Sandbox. By disabling third-party cookies entirely in the Chrome browser, a lot of the marketing and advertising industry will depend on a proprietary system that Google will run. We can't forget that Chrome dominates the browser market, and this would mean putting Google’s Chrome browser at the center of tracking and targeting.
However, I agree with Google's approach to crafting a first-party data strategy. The company highlights the importance of "providing a meaningful and appropriate value exchange to strengthen customer relationships" and that companies must put the consumer in control of their information to establish trust.
In a world where data privacy is paramount, Google's commitment to developing a first-party data strategy aligns with the ever-evolving landscape of advertising and marketing. Still, the company needs to follow its own advice and put the consumer as the priority and not use the Privacy Sandbox for anti-competitive behaviour.
