Conversion Modelling Through Consent Mode – What Does It Mean For Your Ads?

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Passed in May 2018, the European General Data Protection Regulation has had huge consequences for businesses and website owners in particular. One of its basic principles calls for transparency and fairness within the way personal data is collected and processed. In short, this is one of the main reasons many websites you visit today will prompt you with a pop-up notification asking you to agree with their use of cookies – little bits of data that help store information about a specific user’s session. 

Alone, cookies don’t reveal much – but on a larger scale, they help businesses make more informed, analytical, and smart decisions to drive success. 

But they also mean collecting the personal information of everyone that visits the website. Whether or not this was just is exactly what the GDPR aimed to solve. Now, businesses and advertisers in Europe must contend with a much smaller data pool to optimise their ads. 

To combat this, Google has introduced conversion modelling through their consent mode. It poses a way for advertisers to effectively recover a huge portion of lost conversion data, and optimise their ads in such a way that prioritises the privacy of website visitors.

But, first things first…

what is consent mode

Consent mode was released back in September 2020. It provides a solution for advertisers to comply with a more privacy-centric internet. Through new Google tags, advertisers can customise exactly how cookies are managed for advertising purposes. This way, if a user does not accept the website’s cookies, their data will not be recorded . 

It should be noted, though, that consent mode is not the same thing as consent management platforms, which are softwares that help websites with the process of actually obtaining cookies in accordance with user consent. 

Why is this data important for your ads?

Today’s world is increasingly digital. More and more people are turning towards eCommerce when it comes to shopping for their goods, and this means websites are becoming even more of an important tool for advertisers. On a large enough scale, the data they can collect is invaluable for advertisers who want to increase the effectiveness of their ads and generate more conversions. All the little bits of information that cookies can gleam from a user, whether it be what device they’re using, what websites they’ve visited, and much more in order to tailor the advertising experience to them. 

Regulations like the GDPR have had a negative effect on how well advertisers can understand the conversion process of the product they’re trying to market. Without such comprehensive data, optimising advertisements is more difficult and less accurate. If you’ve been running digital advertising campaigns in Europe or other regions with similar privacy regulations for a while, you’ve probably noticed the results of this. 

what is conversion modelling

The primary goal of conversion modelling through consent mode is to give advertisers an option to get some amount of useful data while still working with privacy-friendly consent management platforms. 

conversion modelling offers advertisers a way to track conversions

As of April 2021, consent mode will be able to model conversions and recover “lost data” that would have otherwise been measured when users’ cookies were automatically tracked. Google can then aggregate this anonymous data, and model up to 70% of the ad-click-to-conversion journeys that may have taken place. While Google themselves have said that results may vary depending on the consent ratio and other advertiser differences, this can be a great help for those looking to optimise and improve the effectiveness of their ad campaigns. Advertisers will be able to see and distinguish between observed conversions (ones we know from cookie information) and modelled conversions (ones that Google has predicted), as well as the total number of conversions. 

What does this mean for businesses in HK and beyond?

what does this mean for hk businesses

For businesses operating locally in Hong Kong, this remains more of a concern, at least for the time being. For those who have potential customers in Europe or sell in an international market, this is something that needs to be taken into account. With the potential to greatly increase the effectiveness of your advertising campaigns, and therefore total number of conversions, Google’s conversion modelling through consent mode is effectively the light at the end of the tunnel. 

First Page has years of experience running digital marketing campaigns around the world. If you want to learn more about running Google ad campaigns, get in touch with our specialists today.