PEP 2024 Analysis
Title: The advent of privacy-centric digital advertising: Tracing privacy-enhancing technology adoption
Authors: Garrett A. Johnson (Boston University) and Nico Neumann (University of Melbourne)
Abstract/Summary: In response to privacy regulation (e.g., GDPR, CCPA), the digital ad industry is adopting privacy-enhancing technologies to deliver relevant advertising while improving consumer privacy. In particular, Google proposes to sunset third-party cookies and replace them an ensemble of new technologies it calls the “Privacy Sandbox.” However, regulators are scrutinizing the effectiveness and competitive consequences of these technologies. In this project, we measure the adoption of Google’s Privacy Sandbox for a panel of almost 60,000 top commercial websites. We show that current adoption varies by technology: at least 1-5% of sites use the Protected Audience API whereas at least 36% use the Topics API in 2023. Moreover, we measure associated market shares for adtech vendors (e.g., Criteo, Google, RTB House). We share our updated findings on a public dashboard (app.sincera.io/privacysandbox) to aid stakeholders like academics, firms, journalists, and regulators.