Summary of "Cookie Consent Explained from a Google Ads Perspective" (Episode 470)
Podcast Information:
- Title: The Paid Search Podcast | A Weekly Podcast About Google Ads and Online Marketing
- Host/Author: Chris Schaeffer, Certified Google Ads Specialist
- Episode: Cookie Consent Explained from a Google Ads Perspective
- Release Date: July 7, 2025
In Episode 470 of The Paid Search Podcast, guest host Joey Buidtner delves into the intricate topic of website tracking consent, commonly known as cookie consent. This comprehensive episode is particularly valuable for businesses advertising across different regions with varying privacy laws. Joey shares personal experiences, discusses legal implications, and provides actionable insights on managing cookie consent effectively from a Google Ads perspective.
Introduction to Cookie Consent
Joey opens the episode by emphasizing the critical nature of cookie consent in digital advertising, especially for businesses operating internationally. He highlights the mandatory requirements in regions like Europe and the complexities faced by companies in Canada and the U.S. that target European audiences or states with strict privacy laws, such as California.
"Cookie consent is an extremely important topic, not only because there are certain parts of the world like Europe that have it mandatory, but there's a lot of misunderstanding in other parts of the world..." [00:00]
Personal Experiences and Legal Implications
Joey shares compelling anecdotes illustrating the repercussions of improper cookie consent management. He recounts instances where poor consent practices led to the complete shutdown of conversion tracking and remarketing efforts. Notably, he discusses a case where a client faced a lawsuit demanding tens of thousands of dollars due to non-compliance with California's privacy laws.
"I have a client that recently got sued for tens of thousands of dollars for improperly or not collecting consent from users in California." [00:04]
Listener Question: New vs. Existing Customers in Google Ads
Before diving into the main topic, Joey addresses a listener question from Alex Sinniewski about how Google distinguishes between new and existing customers. He explains that Google cross-references data with customer lists and automated audiences like the "purchasers" audience.
"Google is not clear on the timeline at which they consider a new customer... maybe it's only two weeks, maybe a month." [00:15]
Joey expresses skepticism about using Google’s bidding options for targeting new or existing customers, citing limitations in Google's definitions and the potential negative impact on campaign strategies. He emphasizes the importance of holistic monitoring through tools like Shopify analytics to gauge the balance between new and returning visitors.
"I just measure it holistically. I will look at the back end of Shopify, the back end of my website analytics..." [00:23]
Main Topic: Website Tracking and Cookie Consent
Joey transitions to the main discussion on website tracking and cookie consent, noting the confusion he initially faced in advising clients on when to deploy consent banners and how to ensure data sharing with Google Ads remains effective.
Understanding Cookie Consent Mechanisms
He explains the basic functionality of cookie consent banners, which prompt users to opt in or opt out of tracking. Joey outlines the differing requirements based on geographic regions:
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Europe: Strict laws mandate an opt-in system for tracking.
"Europe has a strict law that says by default everybody is opted out of tracking and we need to ask them to opt in." [00:30]
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Canada and USA: Utilize an opt-out system where users are automatically opted in, but with options to opt out. A robust privacy policy is crucial instead of mandatory banners.
"If you don't advertise in Europe, you don't need to show the banner. Instead, ensure your privacy policy is comprehensive." [00:45]
Specifics on Google Analytics and Session Replay Tools
Joey discusses how tools like Google Analytics (GA4) and session replay software like Microsoft Clarity require consent in Europe. He explains the process of acknowledging data collection in GA4 to enable remarketing audiences in Google Ads.
"When you set up GA4, you need to click 'I acknowledge that I have the necessary privacy disclosures...' to enable data sharing with Google Ads." [00:52]
California Privacy Laws (CPRA)
A significant portion of the episode focuses on California's Consumer Privacy Rights Act (CPRA). Joey outlines the three criteria that necessitate cookie consent for businesses advertising in California:
- Annual Gross Revenue: Over $25 million.
- Data Handling: Buying, selling, or sharing personal information of 100,000+ California residents annually.
- Revenue Source: Deriving 50%+ of annual revenue from selling or sharing personal information to California consumers.
"If your annual gross revenue is above $25 million, or if you collect data on 100,000 California residents, you need to have a 'Do Not Share My Personal Information' option." [01:15]
Joey warns about predatory law firms exploiting non-compliance, emphasizing the importance of adhering to these laws to avoid costly settlements.
"Predatory law firms are looking for businesses that are not asking for the right consent..." [01:20]
Implementing Consent Banners Effectively
To ensure compliance and maintain data continuity with Google Ads, Joey stresses the importance of using consent management platforms (CMP) that support Google’s Consent Mode V2. He recommends platforms like Cookiebot for their compliance and integration capabilities.
"Consent Mode V2 allows Google to share non-identifying data even if users reject cookies, enabling continued remarketing and conversion tracking." [01:30]
Integration with Google Tag Manager
Joey explains that integrating CMPs with Google Tag Manager is essential for sending non-identifying data to Google Ads, ensuring that advertising efforts remain effective despite user consent choices.
"Using a compliant CMP like Cookiebot and integrating it through Google Tag Manager allows you to retain valuable data points." [01:35]
Best Practices for Consent Banners
Joey advises on the strategic placement and timing of consent banners to enhance user experience and maintain data integrity:
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Avoid Simultaneous Pop-ups: Combining consent banners with promotional offers like a 5% discount can overwhelm users.
"Nothing's worse than a bunch of pop-ups when a visitor lands on your website..." [01:45]
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Strategic Timing for Offers: Place promotional pop-ups later in the user journey, such as after adding items to the cart or after spending a few minutes on the site.
"Put that pop-up after they've added something to cart or after a few minutes on the site at least." [01:50]
Handling Legal Challenges
In the event of receiving a CPRA violation letter, Joey recommends contacting a privacy lawyer specialized in these matters rather than a general defense lawyer. He underscores the structured nature of such lawsuits and the potential high costs of litigation versus settlements.
"Contact a privacy lawyer, not necessarily a defense lawyer, because they are familiar with the structure of these lawsuits." [01:55]
Conclusion and Final Recommendations
Joey concludes by reiterating the necessity of proper cookie consent management for businesses advertising in Europe and California. He advocates for the use of verified CMPs like Cookiebot, integration with Google Tag Manager, and maintaining an up-to-date privacy policy. Additionally, he encourages ongoing monitoring and adaptation to any legal changes to ensure continued compliance.
"I implore you to use a verified consent mode platform like Cookiebot and integrate it through Google Tag Manager in consent mode version 2 so you can hang on to those data points." [02:00]
Notable Quotes
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Joey Buidtner on Cookie Consent Importance:
"Cookie consent is an extremely important topic, not only because there are certain parts of the world like Europe that have it mandatory, but there's a lot of misunderstanding in other parts of the world..." [00:00]
-
On Google's Definition of New Customers:
"Google is not clear on the timeline at which they consider a new customer... maybe it's only two weeks, maybe a month." [00:15]
-
Regarding Predatory Lawsuits:
"Predatory law firms are looking for businesses that are not asking for the right consent..." [01:20]
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On Effective Consent Management:
"Consent Mode V2 allows Google to share non-identifying data even if users reject cookies, enabling continued remarketing and conversion tracking." [01:30]
Recommendations for Listeners
- Assess Your Advertising Regions: Determine if your business targets regions with strict privacy laws like Europe or California.
- Implement a Compliant CMP: Use platforms like Cookiebot that support Consent Mode V2.
- Integrate with Google Tag Manager: Ensure seamless data sharing with Google Ads while respecting user consent.
- Enhance Your Privacy Policy: Clearly inform users about data collection and usage practices.
- Monitor and Adapt: Regularly review your consent management setup to stay compliant with evolving laws.
By following these guidelines, businesses can effectively manage cookie consent, maintain robust tracking and remarketing efforts, and mitigate the risk of legal challenges.