Google routinely publishes updates to its algorithms, policies, and data processing technologies.
While many of these changes have a minimal impact on pay-per-click (PPC) advertising efforts, the recent confidential matching update could have major enhancements on your digital marketing strategy. Here is a look at these PPC updates and what they mean for your business.
What’s Confidential Matching?
Confidential matching is a new initiative by Google designed to balance advertiser needs with user privacy concerns. It allows you to securely match the information you’ve collected (first-party customer lists) with Google’s datasets without revealing personally identifiable information (PII).
Google’s confidential matching technology anonymizes user data and ensures you can target relevant audiences without exposing sensitive information about individual users. Data privacy has been a hot topic over the last few years, with several states enacting legislation that limits how you can collect and use user data.
According to Google’s blog, “Confidential matching is now the default for any data connections made for Customer Match including Google Ads Data Manager — with no action required from you. For advertisers with very strict data policies, it also means the ability to encrypt the data yourself before it ever leaves your servers.”
How Does Confidential Matching Work?
Confidential matching involves three main steps. You’ll initiate the process by uploading first-party data, such as customer email addresses and phone numbers. For now, encryption is not mandatory beforehand, but you can upload these in an encrypted format.
Google will use its proprietary technology to match thedata with its own user information. This matching process happens behind a privacy shield, meaning that neither party can access the other’s unencrypted data.
After you’ve matched the data, you’ll be able to deliver highly targeted ads to the matched users. However, you’ll never gain access to their personal data.
To recap, the process is as follows:
- You upload your list
- Google uses Confidential Matching to match the information with its own user data
- You can deliver targeted ads
The process enables you to effectively target audiences without gaining direct access to their PII.
What These PPC Updates Mean for You
Confidential matching is a welcome solution in the user privacy-centric marketing environment. It provides a viable workaround that helps satisfy consumers’ desire for privacy while also enabling you to connect with relevant audiences. Here are some potential implications of Google’s PPC updates.
Optimized Targeting Without Data Leaks
By segmenting and encrypting data, confidential matching mitigates the threat of data leaks. You can run highly effective campaigns without consolidating so much PII into a centralized location. The security-oriented nature of the updates protects both your business and the consumer from potential misuse of sensitive information.
By adding multiple layers of encryption to the matching process, Google aims to slow down hackers. Bad actors will have a much tougher time acquiring and using PII in light of the PPC updates.
Compliance With Privacy Laws
Several states, including California, Colorado, Virginia, and Iowa, have created data privacy laws. Many other jurisdictions have similar legal frameworks on the ballot or in the works within their respective legislative branches.
Confidential matching can be a valuable tool that helps you adapt to these legal changes without hindering your ability to advertise. Confidential matching will allow you to maintain compliance and promote trust with your target audience by demonstrating that you care about and respect consumer privacy.
Enhanced User Trust
Users are selective about how their data is shared. Confidential matching ensures their personal information is protected, which can lead to increased trust in the platforms where they engage with ads.
However, you must still do your part to promote and build user trust. Be transparent about your data collection practices and give consumers the opportunity to opt-out.
You need consumers to trust your business and provide certain first-party data to take full advantage of Google’s confidential matching system. The road to quality data is built on trust and transparency with your target audience.
Need Help Overhauling Your Strategy? We Have You Covered
Dagmar Digital Marketing can help you respect user privacy while also adapting to the latest round of PPC updates. Our results-oriented marketing professionals know what it takes to get you noticed and climb the rankings. Contact our team at 877-753-0050 or connect with us online to schedule your free consultation.
Angie Batten
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