May 16^th Google announcement regarding “Google-certified Consent Management Platform (CMP)” is intended to ensure compliance with the Transparency and Consent Framework (TCF), which standardizes the way consent is obtained from users in accordance with the General Data Protection Regulation (GDPR).

Publishers, in practical terms, must move beyond simple Terms of Service and Privacy Policy pop-ups, and start collecting consent in a more comprehensive manner, giving users more detailed information and choices. In order to comply with TCF, they must ensure that users give their consent freely, specifically, in an informed manner, and unambiguously.

The CMP stands between the publisher, user, and vendors, offering transparency about the vendors with which a publisher works, storing user consent signals, and making sure that consent only applies to the vendors who have stated they use data for that purpose.

At present, five out of 25 large mobile video game companies, including Outfit7, EasyBrain, Rovio, Gameloft, and Supersonic Studios, have put TCF into action. It seems likely that the other companies will also have to abide by these rules.

These changes might result in a drop in ad revenue for publishers, especially those from users in the European Economic Area (EEA) and the UK. If publishers overlook these requirements or if a user withholds consent, Google might serve non-personalized ads instead of personalized ones.

As of now, the timeline for these changes is uncertain, with Google only saying it will happen “later this year.” For now, publishers are advised to gather information and explore options. Even though this move may initially impact the user experience, the industry is expected to adapt as it has to previous changes.

The changes announced by Google will significantly impact web Rewarded Video Ad monetization, particularly for websites that rely heavily on advertising revenue from Google AdMob, Google AdManager, or Google AdSense. Here’s how:

1. User Consent: One of the most significant impacts will be the need to collect detailed user consent via a Google-certified Consent Management Platform (CMP). Websites will no longer be able to rely on simple Terms of Service and Privacy Policy pop-ups. Instead, they will need to provide users with comprehensive information about how their data is used and give them clear options to provide or withhold consent.

2. Transparency: The new guidelines aim to increase transparency about how user data is used. This means that users will be informed about the vendors that a publisher works with, the purpose and legal basis of data usage, etc. This transparency could potentially lead to a decline in users agreeing to data usage, as they become more aware of what they are consenting to.

3. Potential Revenue Impact: If users choose not to give consent, Google may serve non-personalized ads instead of personalized ads. Non-personalized ads are typically less effective and generate less revenue, potentially impacting the overall Rewarded Ad revenue for publishers, especially those deriving a significant portion of their income from users in the European Economic Area (EEA) and the UK.

4. Compliance Cost: Implementing these changes will require time, effort, and potentially financial resources, as publishers will have to integrate with a Google-certified CMP. This could lead to an increase in operational costs.

5. User Experience: The need for obtaining detailed user consent could lead to an increase in the number of pop-ups and the amount of information presented to the user, which could potentially disrupt the user experience on the website. This, in turn, may impact user engagement and, indirectly, ad revenue.

Publishers are advised to prepare for these changes and consider their strategies for obtaining user consent in a way that is compliant with these new requirements, while also maintaining user engagement and experience.

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