Google to leverage IP addresses for CTV advertising

Google plans to modify its platforms program policies to permit advertisers to use IP addresses for targeting, particularly in Connected TV (CTV) advertising. The changes, announced on December 18, 2024, and set to take effect on February 16, 2025 - which has now passed - represent a significant shift in Google's approach to IP address usage in advertising technology.

This policy adjustment comes as Google seeks to strengthen its position in the competitive CTV advertising market. According to the official announcement, these changes will enable more sophisticated audience targeting while maintaining privacy standards through new technological safeguards.

The timing is particularly notable as it comes approximately three months after the initial announcement and occurs during a period of rapid transformation in how advertisers reach streaming audiences across different platforms. Industry observers have noted this represents a strategic move to address Google's current competitive disadvantages in the connected TV space.

According to Google's official announcement, the policy updates reflect advances in privacy-enhancing technologies (PETs), including on-device processing, trusted execution environments, and secure multi-party computation. These technologies enable advertisers to manage and activate their data while maintaining user privacy protections.

Ari Paparo, an industry expert, highlighted the competitive implications of this move on social media: "Their business severely lags the competition (who all use IP), so this is an opening for them," Paparo stated in response to the announcement. His assessment underscores how this policy change addresses a significant competitive gap for Google in the CTV advertising ecosystem.

The motivation behind these changes stems from the growing importance of connected TV in advertising strategies. Current market data indicates CTV represents one of the fastest-growing advertising channels, creating pressure for more sophisticated targeting capabilities that balance effectiveness with privacy considerations.

Google's technical implementation approach centers around confidential computing within its advertising products. This methodology would allow businesses to leverage first-party data without re-identifying individual users. The approach differs fundamentally from traditional IP address targeting by integrating privacy-preserving technologies directly into the targeting mechanisms.

The policy updates will directly affect Display & Video 360, Google's programmatic advertising platform, enabling three key capabilities for CTV advertisers.

First, marketers will be able to reach households with relevant CTV ads based on demographics, shared interests, or purchase intent signals from across the entire household. According to the announcement documentation, this enhancement means "marketers will soon be able to reach households with relevant CTV ads based on demographics, shared interests, or purchase intent signals from across the entire household."

Second, the changes will help connect measurement dots between CTV viewership and purchasing behavior. "Today's consumers are seamlessly and simultaneously searching, scrolling, shopping, and streaming. They begin this journey on one device, and finish it on another, making it challenging for advertisers to measure the impact of CTV ads on purchases," the documentation explains. To address this, Google will enhance conversion measurement in Display & Video 360 and Campaign Manager 360.

Third, Google will introduce household-level reach and frequency metrics. "Later this year, household reach metrics will be integrated into our standard reach reports, displayed alongside our existing people reach metrics," according to the announcement. This will provide brands with a clearer view of campaign impact and allow for direct comparisons between CTV and traditional TV.

For advertisers, these changes address several longstanding challenges in CTV advertising. The fragmentation of streaming platforms has created difficulties in reaching consistent audiences and measuring campaign effectiveness. IP addresses serve as crucial identifiers in the CTV environment, where traditional browser-based identifiers like cookies have limited applicability.

From a privacy perspective, Google emphasizes that core principles remain unchanged despite technological adaptations. Users will maintain choice regarding personalized advertisements, and transparency requirements for advertisers and publishers continue. The company positions these updates as an evolution of existing practices rather than a fundamental shift in privacy philosophy.

The implementation timeline gave advertising technology providers approximately eight weeks to prepare for these changes, a period that has now elapsed. The new policies will affect various advertising surfaces, including connected TVs and gaming consoles, reflecting the expanding scope of digital advertising beyond traditional web browsers.

This technical capability enables several significant improvements for advertisers using Google's platforms. Most notably, it will allow for more accurate household-level targeting, which is particularly important in the CTV environment where multiple viewers often share a single device. The documentation states: "Because CTV is typically watched in groups, these updates will also enable advertisers to better understand their audience, leading to more relevant ads and performant CTV campaigns."

Google is also making it easier for advertisers to use first-party audiences on CTV, "enabling broader household reach with no extra steps to optimize audience segments for CTV." This streamlining of workflow represents a significant technical advancement in how audience data can be deployed across streaming platforms.

For measurement capabilities, the updates will provide a more complete view of how CTV campaigns impact purchasing behavior in a household. This includes enhancements to conversion measurement in both Display & Video 360 and Campaign Manager 360, allowing marketers to gain "a better understanding of which ads perform best on YouTube and other popular CTV services."

Industry analysts have noted that Google's approach differs from some competitors who have historically utilized IP addresses more aggressively. The implementation of privacy-enhancing technologies provides a technical framework that could become standard practice if successful. This balance between addressing competitive disadvantages while maintaining privacy credentials reflects the complex dynamics of the current advertising technology landscape.

Multiple factors have contributed to this policy shift. The rise of streaming services has fragmented viewership patterns, creating challenges for advertisers accustomed to traditional TV buying models. Additionally, the technology landscape has evolved significantly, with innovations in privacy-enhancing techniques providing new options for data usage.

Statistical analysis indicates the shift comes amid substantial growth in CTV advertising. Market projections suggest continued expansion of streaming platforms as primary content consumption channels, further emphasizing the importance of effective targeting and measurement solutions in this environment.

Google's announcement clarifies that prohibited practices will remain restricted to protect users. These include prohibitions on advertisements that simulate operating system warnings with deceptive intent. The policy maintains clear requirements for transparency, mandating that advertisers and publishers clearly communicate their data collection and usage practices to users.

The implementation effects will be automatically applied to Display & Video 360 advertisers, who "will automatically benefit from more effective household connections, deeper campaign insights, and higher CTV ROI," according to the documentation. This includes coverage across YouTube and top streaming content accessible through Google's advertising platforms.

This policy change represents a significant development in the ongoing evolution of digital advertising technology, balancing the industry's need for effective targeting capabilities with growing demands for user privacy protection. The success of this approach will depend on the practical implementation of privacy-enhancing technologies and their adoption across the advertising ecosystem.

Timeline of Google's IP Address Policy Change

• December 18, 2024: Google announces platform policy changes allowing IP address use for advertising
• February 16, 2025: New policies take effect (59 days after announcement)
• March 2025: Current period (approximately 90 days after announcement, 30 days after implementation)
• Later in 2025: Planned introduction of household reach metrics integration into standard reach reports