When Apple announced it would force companies to ask users for permission to track them on devices such as the iPhone, the ad tech industry had a collective meltdown. In particular, Facebook, the world’s second largest digital advertising network, decried the change, claiming it would massacre the small businesses that rely on the consumer data Facebook and others stealthily procure.
But for those hoping to reverse or circumvent Apple’s privacy changes, Google delivered a wake-up call, saying it would cut off access to consumer data on Android devices for all users who opt out of tracking. Google did not go as far as Apple, as the company is not alerting users to tracking every time they open an app and foregrounding the choice to opt out. But the world’s largest advertising network is clearly following Apple’s lead, and Google said it may provide “even more informed control” over tracking in the future.
It is only a matter of time before Google fully follows Apple’s example, hoping to shield itself from pro-privacy regulators and undercut its rival’s opportunity for brand differentiation on privacy. The days of the Google advertising ID, which allows advertisers to track Android users from app to app and site to site on mobile devices, are numbered.
What’s more, Google’s privacy changes will mark an even more seismic shift in the mobile tracking market than Apple’s App Tracking Transparency policy. That’s because Google controls about 72% of the global smartphone market. And let’s not forget that Google already said it is ending third-party cookies on its market-leading Chrome browser, ending the relentless tracking party on desktop. Combined, the downgrade of both cookies and mobile IDs will cut off access to consumer data on desktop and mobile, forcing businesses to seek new, less covert ways to understand their customers.
Businesses and consumers alike should understand the tech giants’ privacy changes as a major opportunity to shift the status quo of data-driven business. But these changes are a stepping stone. Preparing for the future of business requires more dramatic action.