Internally, the search giant is discussing how it can limit
data collection and cross-app tracking on the Android operating system in a way
that is less stringent than Apple’s solution, said the people, who asked not to
be identified discussing private plans.
Google is trying to balance the rising demands of
privacy-conscious consumers with the financial needs of developers and
advertisers. The Alphabet Inc. unit is seeking input from these stakeholders,
similar to how it’s slowly developing a new privacy standard for web browsing
called the Privacy Sandbox.
With more than $100 billion in annual digital ad sales,
Google has a vested interest in helping partners to continue generating revenue
by targeting ads to Android device users and measuring the performance of those
marketing spots.
“We’re always looking for ways to work with developers to
raise the bar on privacy while enabling a healthy, ad-supported app ecosystem,”
a Google spokesman said in a statement.
In a forthcoming software update for iPhones and iPads,
called iOS 14.5 and iPadOS 14.5, Apple is adding a new feature called App
Tracking Transparency. The tool lets consumers choose whether apps can collect
data about them across other apps and websites. The imminent move has shaken
the digital advertising industry. Facebook Inc. and other companies have
complained the feature will limit their ability to effectively serve
personalized ads and generate revenue.
A Google solution is likely to be less strict and won’t
require a prompt to opt in to data tracking like Apple’s, the people said. The
exploration into an Android alternative to Apple’s feature is still in the
early stages, and Google hasn’t decided when, or if, it will go ahead with the
changes.
On the iPhone, Google offers developers a framework so they
can monetize their apps using Google ads. In a recent blog post, Google said
Apple’s ad-tracking update means developers “may see a significant impact” on
their ad revenue.
To keep advertisers happy while improving privacy, the
discussions around Google’s Android solution indicate that it could be similar
to its planned Chrome web browser changes, the people said. The company said in
2020 that it intended to phase out third-party cookies in Chrome within two
years. Google reaffirmed that plan earlier this year. Cookies are a way for
websites to track users around the web to serve them more personalized ads.
Google’s web alternative, known as the Privacy Sandbox,
allows some ad targeting with less-specific data collection. As part of that
solution, the company has developed a technology called Federated Learning of
Cohorts that lets advertisers target groups of people with similar interests
rather than individuals. Google is likely to take a similar approach with
Android. - Bloomberg
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