With third-party cookies losing their grip on digital advertising, Google has introduced the Topics API as a privacy-focused alternative for interest-based ads. This new technology is designed to deliver relevant ads without relying on individual tracking or compromising personal data. Replacing Google’s earlier proposal, Federated Learning of Cohorts (FLoC), which faced privacy concerns, the Topics API offers another approach in the shift toward more privacy-preserving advertising solutions.
How Does Google Topics API Work?
The Topics API operates on a simple premise:
- Topic Assignment: The user’s browser analyzes their recent browsing history and assigns a few "topics" based on the sites they visit. These topics are derived from a predefined list and represent general interest areas like "Fitness," "Travel & Transportation," or "Business Services."
- Local Storage: These topics are stored locally on a device for a limited period, with older topics being deleted regularly.
- Sharing with Websites: When the user visits a participating website, their browser shares a few of their top topics with the site. This information allows advertisers to show them more relevant ads without having access to detailed browsing history or personal identifiers.
Here's an Example:
If someone visits a lot of sports-related websites, the browser might assign them the “Sports” topic. When that person visits a new site using the Topics API for ad targeting, their browser might share the “Sports” interest with that site. An advertiser can then serve ads related to sports, but the advertiser won't know which specific sports websites were visited or track them beyond this general interest.
Why Did Google Replace Federated Learning of Cohorts (FLoC)?
FLoC aimed to group users with similar browsing interests into "cohorts" or groups, allowing advertisers to target these clusters without identifying individual users. However, FLoC raised concerns about potential privacy risks.
As FLoC IDs were shared across all sites it allowed trackers to associate data from external sources and learn about users with minimal effort. There was also the risk of cohort IDs leaking sensitive information about users, including things like race and income.
Topics API addresses these concerns by:
- Reducing Granularity: Using broader topics instead of specific cohorts makes it harder to identify individuals.
- Limiting Data Sharing: Only a few topics are shared with websites, reducing the potential for tracking.
- User Control: Users have more transparency and control over the topics associated with them.
Further reading: What is Google’s Privacy Sandbox?
How is Google Topics API Different From Third Party Cookies?
source: Google
Example illustrations of what you can see about 3rd party cookies (left) vs Topics (right). In Chrome, they plan to make Topics easier to recognize and manage for users.
The Topics API operates by analyzing user interests without relying on third-party cookies that track individual users across various websites. Unlike conventional tracking methods we’ve been used to, that build detailed profiles of individual users, the Topics API prioritizes user privacy by enforcing limitations on data sharing and rejecting individual tracking. This approach empowers users with greater visibility and control over the topics associated with their browsing activity. Additionally, the API enables topic selection to take place locally on the user's device, reducing the need for heavy reliance on external servers.
Further reading: 10 Best Alternatives To Third Party Cookies (2023) Definitive Guide
How Will Topics API Impact Publishers?
For publishers, Topics API offers a way to continue delivering relevant ads while respecting user privacy. Here's how it might impact you:
- Ad Revenue: Topics API can help maintain ad revenue by enabling interest-based advertising without compromising user trust.
- User Experience: By showing more relevant ads, Topics API can improve user experience and engagement on your website.
- Adaptation Required: Publishers may need to adapt their ad tech stack to integrate with the Topics API.
- Evolving Landscape: The effectiveness of Topics API is still being evaluated, and publishers should stay informed about its development and potential impact on their ad revenue strategies.
By understanding and adapting to the Topics API, publishers can navigate the changing advertising landscape while prioritizing user privacy and maintaining a positive online experience.
Other Third-Party-Data Alternatives
While Google’s Topics API is one potential solution, it's not the only option. Publishers should also explore other approaches, like using first-party cookies to collect direct audience insights, contextual advertising that targets ads based on page content, or implementing PPIDs (Publisher Provided Identifiers) to uniquely identify users in a privacy-friendly way.
Navigating these alternatives can be complex and time-consuming, and there’s no one-size-fits-all solution. At Snigel, we’ve enhanced our AdEngine to support a range of cookie-less strategies—blending ID solutions, contextual advertising, and more to help you maximize revenue while staying compliant. If you’re looking for hands-on support to develop a privacy-friendly data strategy tailored to your site, our ad operations team is ready to help.
Ira supports our team and publishers by creating awesome guides on the latest AdTech trends. Ira's background is in software development, communications, and media.
