How Will Google Consent Mode v2 Impact Advertisement in 2024?

As privacy regulations tighten and user expectations for privacy grow, the technologies of advertisers must adapt. Last year, the Digital Markets Act (DMA) came into force. On January 1, 2024, another privacy law — the Digital Services Act (DSA) — became applicable as well.

The DMA sets privacy regulations for a variety of tech services, including search engines, cloud services, social networks, video-sharing platforms, online advertising networks, and other services, owned by large digital companies, including Alphabet (owner of Google), Amazon, Apple, Meta, ByteDance, and Microsoft. 

The DSA regulates how Big Tech companies moderate and manage content, including illegal content, hate speech and disinformation, and the rights of children.

Google with its services like Google Ads and Google Analytics 4 (GA4) is one of the leaders in the field of advertisement.

Recently, Google introduced Google Consent Mode v2, a significant update to Google's privacy management tool that most probably will have a huge impact on advertisements in 2024.

Read this blog article to get to know how businesses should approach digital advertising in 2024.

Understanding Google Consent Mode v2

Google Consent Mode, initially launched in 2020, allows websites to adjust how Google tags behave based on user consent choices. If a user consents to data collection, the full range of Google Analytics and Ads tracking functionalities is activated. If the user declines, Google tags respect user preferences while still providing the basic level of Google products.

Google Consent Mode v2 goes even further by introducing privacy enhancements that align with the latest privacy regulations, such as the General Data Protection Regulation (GDPR) and ePrivacy Directive (the Cookie law). 

In Google Consent Mode v2, the key settings are ad_user_data and ad_personalization, which are based on the same trigger as ad_storage.

Google Consent Mode v2 supports the following Google services:

• Google Analytics 4
• Google Ads (Google Ads Conversion Tracking and Remarketing)
• Floodlight
• Conversion Linker

Key Features of Google Consent Mode v2

• Improved user transparency. Transparency features play the main role, allowing users to see exactly what data is being collected and how it is used. This fosters trust and enables users to make more informed decisions about their data.
• Better integration with Google services. Google Consent Mode v2 offers seamless integration with a broader range of Google services, ensuring that advertisers can maintain campaign effectiveness even with restricted data access.
• Enhanced data modeling. The latest consent mode introduces behavioral modeling and conversion modeling. With the help of data from consented users and the AI, behavior and conversions of non-consented users could be modeled as well to fill in data gaps. Using the Basic or Advances consent mode, anonymized and aggregated data helps advertisers understand non-consented user behavior without compromising privacy.

Impact of Google Consent Mode v2 on Google Ads

Google Consent Mode v2 raises challenges for advertisers in using Google Ads in the following aspects:

• Ad Personalization. The new consent mode alters the way Google Ads and GA4 handle user data. When users opt out of cookies, ad personalization is significantly affected. This creates challenges for marketers in providing personalized ads without infringing on user privacy.
• Tracking conversions with consent limitations. A critical aspect of Google Ads is tracking conversions. If users don’t give consent to track their online activity, it raises a challenge for understanding and optimizing ad performance.
• Remarketing under restriction. Without comprehensive user data, remarketing strategies couldn’t be performed easily. Remarketing now requires a delicate approach to balance effectiveness and privacy.
• Adapting to new consent practices. Google Ads must now operate by the choices set by user consent, necessitating a strategic shift in how ads are targeted and measured.

Consent management is required to serve Google Ads. Google required businesses to use Google Consent Mode v2 and get Cookie Consent before using Google Ads.

Impact of Google Consent Mode v2 on Google Analytics 4

Google Consent Mode v2 enables the management of cookies for analytics use in GA4 based on users’ consent choices via the analytics_storage tag. If a user agrees with Google Analytics cookies, GA4 then collects the data needed for analytics and/or statistical purposes. If a user does not consent to Google Analytics cookie use, then there will be data gaps for non-consented users. However, non-identifying data is still collected, like the browsing device, operating system, browser, etc.

A correctly implemented cookie banner should detect and block all cookies and other tracking technologies in use. It should also provide information about all cookies to users and get Cookie Consent to use them. Users can consent broadly to data processing, or at a granular level.

The introduction of Google Consent Mode V2 encourages advertisers to adopt data analytics strategies without compromising user privacy. The latest consent mode raises the following challenges:

• The data collection challenge. GA4’s data collection capabilities are directly affected by the user consent choices. When users don’t give Cookie Consent, data loss can lead to incomplete analytics, impacting the depth and reliability of insights.
• Event-based model and consent. GA4’s event-based model offers some flexibility, but it is still subject to the limitations set by user consent, impacting the quality and depth of the analytics.
• Upholding user privacy. GA4 aligns with user privacy settings, the action that respects user preferences but introduces new challenges in data analysis and interpretation.
• Relying on aggregated insights. In response to these limitations, GA4 uses aggregated and anonymized data, which respects user privacy but still offers analytics insight.
• Relying on data modeling. To cope with the challenges due to partial data loss, Google introduces behavioral modeling and conversion modeling. With the help of data from consented users and the AI, the behavior and conversions of non-consented users could be modeled as well.

How Will Google Consent Mode v2 Impact Advertisement in 2024?

• Balancing compliance and effectiveness. With stricter data privacy laws coming into effect globally, Google Consent Mode v2 helps advertisers stay compliant while running effective ad campaigns. The data modeling and aggregated insights ensure that ad targeting can continue even for non-consented users.
• Optimized Ad spends. By leveraging the anonymized and aggregated data as well as improved modeling techniques, advertisers can optimize their ad spending more efficiently. This means better ROI as ads are served to more relevant audiences even for non-consented users.
• User trust and brand loyalty. As privacy concerns increase, brands that rely on user consent and transparency will likely build stronger trust and loyalty. Google Consent Mode v2 helps companies to demonstrate their commitment to user privacy.
• Adapting to a cookieless future. With Third-Party Cookies being going away, companies need to get new tools to serve effective marketing campaigns. Google Consent Mode v2 is one of such tools, that balance user privacy and continue to measure and track user interactions and online activity. The new consent mode allows for building robust and data-driven advertising strategies.

Do You Need Cookie Consent to Use Google Ads or GA4?

Yes, in the European Economic Area (EEA) and the UK, you need to get valid cookie consent for non-essential cookies to use Google Ads, GA4, and other Google products. In Europe, companies need Cookie Consent to be able to use Google Ads for functions like personalization, retargeting, and conversion tracking. Consent is required to collect users’ data regarding their online browsing, shopping, browsing history, and recent activity, and other data to power GA4.

However, cookies, local storage, and session storage need to be blocked by default until the user gives cookie consent under many regulations, including the GDPR. Websites and apps must get Cookie Consent PRIOR to serving ads or collecting user analytics data. This conflicting situation directly impacts advertisements.

Why Is a Consent Management Platform (CMP) Required?

Consent Mode is not exclusively used with Google Ads or GA4. In the EU and UK, Google is requiring third parties to use a CMP to obtain and signal user consent if they want to continue to serve personalized ads as of January 2024. A CMP must be a Google-certified CMP, which supports Google Consent Mode v2, and has integration with the IAB TCF 2.2.

Consent Mode does not itself enable compliance with data privacy laws. Valid consent needs to be obtained via a Consent Management Platform (CMP) for the use of cookies and other tracking technologies on websites and apps.

Using CMP has the following functionalities:

• Consent management. CMPs help to provide cookie notices for data collection purposes and collect and manage legally valid user consent.
• Multi-jurisdiction compliance. CMPs handle various global laws, integrating consent across platforms for marketing operations. The geo-targeting functionality detects the location of a user and provides the cookie pop-up, relevant to the jurisdiction.
• Explicit vs implied Cookie Consent. privacy laws set different requirements. For example, the GDPR, one of the strictest privacy laws, mandates explicit, or opt-in Cookie Consent, while US laws usually require implied, or opt-out options.
• Integration with other platforms. Many platforms and tools like WordPress, Shopify, PrestaShop, etc., could be used for advertisement. This means that a CMP needs to be integrated with them.

How to Use Google Consent Mode v2 for Effective Advertisement in 2024?

1. Use a CMP. CMPs deliver cookie notices and collect and manage user consent.
2. Implement Google Consent Mode v2. If you want to use Google Analytics 4, Google Ads, and other Google products in the EEA, you must use Google Consent Mode v2.
3. Get benefits. Once you use a Google-certified CMP, integrated with Consent Mode v2 and IAB TCF 2.2, you can be sure that you comply with all privacy regulations and perform effective advertisement at the same time. Consent Mode v2 uses Behavioral modeling, Conversion modeling, and aggregated data, which allows to implement effective advertisement campaigns even for non-consented users.

CookieScript CMP is a CMP with all the necessary functionalities for effective advertisement in 2024. All in one place:

• Google-certified CMP. CookieScript is a Google-certified CMP partner and comes with a full IAB TCF v2.2 integration.
• Supports Google Consent Mode v2. If you want to use Google services (GA4, Google Ads, gtag, and Google Tag Manager) in the EU or EEA, you need to use a Google-certified CMP.
• Local Storagge and Session Storage scanning and blocking. GDPR and other privacy laws require blocking of cookies, Local Storagge and Session Storage until user consent is given. However, majority of CMPs do not offer this functionality. CookieScript blocks both Local Storagge and Session Storage.
  
• Multiple integrations. CookieScript CMP integrates easily with Google services automatically via Google Tag Manager, so you could use Google advertisement products easily. The CookieScript CMP is also integrated with other platforms, including content management systems such as Drupal, Magento, Shopify, WordPress, PrestaShop, etc., and analytics platforms, including Google Analytics 4.
• Full compliance solution. CookieScript CMP comes with the Cookie Scanner, Privacy Policy Generator, script manager, and user consent manager.  It blocks cookies, Third-Party Cookies, Local Storage and Session Storage, so you can be sure your website is compliant with the GDPR and other privacy regulations 100%!

Frequently Asked Questions

Why is a Consent Management Platform (CMP) required for Google Ads?

It is a requirement of Google. In the EU and UK, Google is requiring third parties to use a CMP to obtain and signal user consent if they want to serve personalized ads as of January 2024. A CMP must be a Google-certified CMP, which supports Google Consent Mode v2. CookieScript is a Google-certified CMP, integrated with Google Consent Mode v2 and the IAB TCF 2.2, which allows you to collect valid cookie consent and use Google Ads.

How to perform effective advertisement campaigns in 2024?

To perform effective advertisement campaigns with Google Ads, first, use a CMP to deliver cookie banners and manage user consent. Second, implement GGoogle Consent Mode v2. Third, get benefits. With Google Consent Mode v2, you can use Behavioral modeling, Conversion modeling, and aggregated data to implement effective advertisement campaigns even for non-consented users. CookieScript is a Google-certified CMP, integrated with Google Consent Mode v2 and the IAB TCF 2.2.

Do You Need Cookie Consent to Use Google Ads or GA4?

Yes, in the EEA and the UK, you need to get valid cookie consent for non-essential cookies to use Google Ads, GA4, and other Google products. Cookies, local storage and session storage must be blocked by default until the user gives cookie consent. Websites and apps must get cookie consent PRIOR to serving ads or collecting user analytics data. Use CookieScript, a Google-certified CMP, integrated with Google Consent Mode v2, to use Google Ads and GA4.

Does Google Analytics require cookie consent?

Yes, you need to implement consent management and get cookie consent for services like GA4 in Europe and the UK. Other privacy laws also require getting cookie consent. Additionally, from 2024, Google is requiring the use of a certified Consent Management Platform (CMP) and signaling of valid consent under the Digital Markets Act. CookieScript is a Google-certified CMP, integrated with Google Consent Mode v2, that can be used with GA4.

How does Google Consent Mode v2 affect Google Analytics 4?

Google Consent Mode v2 respects user privacy and allows tracking of even non-consented users at the same time. Consent mode v2 relies on aggregated insights and data modeling. It uses aggregated and anonymized data, behavioral modeling and conversion modeling to model behavior and conversions for non-consented users. CookieScript, a Google-certified CMP, is integrated with Google Consent Mode v2 allows you to use GA4.

How do I set Consent Mode v2 in Google Analytics 4?

Google Consent Mode v2 is included in CookieScripts CMP and is set by default, so it is ready to signal consent information to Google Analytics 4. Consent Mode v2 enables the management of GA4 cookies based on users’ consent choices via the analytics_storage tag.

How to implement consent management for Google Ads?

Google Consent Mode v2 is integrated with CookieScript CMP for consent management and signals user consent to Google Ads and other services. See our guides on how to install Google Consent Mode v2 with GTM or manually.