DV360: New tools for privacy-focused advertising
Google’s Display & Video 360 introduces PAIR and AI tools to enhance privacy and audience targeting in digital advertising.
On January 21, 2025, Google announced updates to its demand-side platform, Display & Video 360, focusing on privacy-preserving advertising solutions and enhanced audience targeting capabilities. The updates include the broader availability of Publisher Advertiser Identity Reconciliation (PAIR), a tool designed to connect advertiser and publisher first-party data without compromising user privacy. According to the announcement, PAIR has been adopted as an industry standard by the IAB Tech Lab, with over 20,000 publisher domains already integrated through LiveRamp’s Authenticated Traffic Solution.
PAIR allows advertisers to deliver relevant ads by connecting their first-party data with publisher data, without sharing or pooling information with other advertisers. This approach ensures that user data remains protected. The protocol is also being expanded with open-source confidential computing solutions, which provide additional security assurances within Trusted Execution Environments.
The adoption of PAIR has shown measurable results for several advertisers. For example, Hyundai’s connected TV (CTV) campaign, developed in partnership with Canvas and Making Science, achieved an 8% reduction in cost-per-reach using PAIR-based audiences compared to other segments. Similarly, Omni Hotels reported a 4x increase in conversion rates compared to traditional cookie-based personalization strategies. A leading home goods retailer saw a 5x increase in conversions, while PMG’s CTV campaigns for a retail client delivered a 67% lift in return on ad spend (ROAS) and a 39% reduction in cost per acquisition (CPA).
In addition to PAIR, Display & Video 360 offers a range of signals to enhance audience strategies. Advertisers can connect their BigQuery and Google Analytics accounts to unlock actionable insights. Mitsubishi Motors, for instance, achieved a 14x increase in conversion rates by integrating these tools. The platform also supports Customer Match, which allows advertisers to re-engage customers across Google and YouTube, and Google-engaged Audiences, which target users who have interacted with a brand’s website.
Behind the scenes, Display & Video 360 uses signals like Publisher Provided Identifiers (PPID) and Exchange Provided ID (EPID) to improve ad quality and protect user privacy. These signals have boosted advertiser ROI by an average of 7% and publisher revenue by 20%. The platform is also testing integration with Chrome’s Privacy Sandbox APIs to ensure compatibility with emerging privacy-preserving technologies.
Luís Rijo
Google AI plays a central role in optimizing campaigns on Display & Video 360. Optimized targeting, powered by Google AI, analyzes real-time campaign data to identify new and relevant audiences likely to convert. Advertisers using this feature have seen a 25% boost in campaign objectives with Google audiences and a 54% boost with first-party audiences. Enhanced automation, another AI-driven tool, uses aggregated click, conversion, and impression signals to predict optimal bids for each impression. Advertisers who enabled enhanced automation experienced a 60% lower median CPA at the insertion order level.
The combination of optimized targeting and enhanced automation has proven particularly effective. Advertisers using both tools reported a 10% lower CPA compared to those using only one solution. These AI-powered features are designed to help marketers navigate the fragmented digital advertising landscape while maintaining user privacy.
According to the announcement, the industry’s shift toward privacy-preserving advertising is driven by increasing regulations and consumer expectations. Google’s approach emphasizes the use of first-party data and privacy-preserving signals, such as those being tested in the Privacy Sandbox. The company has also been working on foundational measurement tools, like the Google tag and Consent Mode, to help advertisers collect and maintain user consent while capturing relevant data.
The integration of Google Analytics with Display & Video 360 and other platforms like Search Ads 360 and Campaign Manager 360 provides a comprehensive view of the customer journey. Enhanced conversions, which improve the accuracy of conversion measurement, are another key component of this strategy. Advertisers can also leverage cross-domain linking to measure customer interactions across multiple domains and create conversions based on Google Analytics key events.
For audience engagement, Display & Video 360 supports tools like Customer Match and optimized targeting, which help advertisers reach users likely to convert. The platform also allows advertisers to export Google Analytics audiences to re-engage users based on their behavior. Additionally, Google-engaged Audiences enable brands to target users who have previously interacted with their site from Google properties.
The announcement highlights the importance of adapting to platform shifts and regulatory changes. As third-party cookies are phased out, advertisers are encouraged to explore privacy-preserving solutions like PAIR and the Privacy Sandbox APIs. These tools aim to provide a more transparent and privacy-focused digital advertising ecosystem.
The updates to Display & Video 360 reflect broader trends in the digital advertising industry, where privacy and data security are becoming increasingly important. By leveraging first-party data, AI-driven tools, and privacy-preserving signals, advertisers can continue to reach their target audiences effectively while respecting user privacy.
According to the announcement, Google will continue to evolve its advertising tools to meet the changing needs of the industry. Advertisers are encouraged to stay informed about updates and explore how these tools can be integrated into their strategies. The company has also provided resources to help advertisers prepare for the deprecation of third-party cookies and other regulatory changes.
The January 21, 2025 announcement marks a significant step in the development of privacy-focused advertising solutions. With the adoption of PAIR as an industry standard and the integration of AI-powered tools, Display & Video 360 aims to provide advertisers with the tools they need to succeed in a privacy-first world.
The announcement also underscores the importance of collaboration between advertisers, publishers, and technology providers. By working together, the industry can create a more transparent and effective digital advertising ecosystem that meets the needs of both advertisers and consumers.
As the digital advertising landscape continues to change, tools like PAIR and Google AI-powered solutions will play a critical role in helping advertisers navigate these shifts. The updates to Display & Video 360 demonstrate how technology can be used to enhance privacy and improve advertising performance in a rapidly changing environment.
The January 21, 2025 announcement is a reminder of the importance of staying ahead of industry trends and adopting new tools and strategies to meet the challenges of the future. By focusing on privacy and data security, advertisers can build trust with consumers and achieve their marketing objectives in a responsible and effective way.