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Google @ #OMR19 I Conference I Advertising that Works in a Privacy First World

Google @ #OMR19 I Conference I Advertising that Works in a Privacy First World

[Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] good to have you thank you very much we met a long time ago long before you move to Google so good to see you back here on stage Philip also pages yours thank you and thanks for the very warm introduction Philip hello all my marketing rockstars we just saw a couple of rock stars in the video from the 80s I think there were some very fine rock stars back then some of them had interesting hairstyles we don’t quite carry our hair like that anymore today but two things happened in the 80s that are very relevant for our conversation here today the first one is of course the introduction of the World Wide Web and the second one is people standing up for data privacy now I grew up in the 80s and I recall very vividly the conversations and not only conversations actually the demonstrations about the first silom here in Germany and I recall sitting in my high school with my German teacher a chap called her Nikol and we were discussing intensively back and forth the pros and cons of the foot Salo and as young kids growing up we didn’t want to become what we called gliese and a builder or fully transparent citizens we were concerned about the safety and the privacy of our data and I think that story of the folksy dome and the privacy consciousness here in Germany in the 80s is still with us today in 2019 it’s the reason why we have a special privacy consciousness in Germany today we all want our data to be safe we want our privacy to be protected and we want to be in control the second thing that happened in the 80s was in 1989 of course the invention of the World Wide Web so Tim berners-lee at that time at CERN famously wrote a paper that was called information management a proposal and he submitted it to his boss who wrote on it vague but exciting and I think that notion are vague but exciting we still see some elements of that today in our conversations about the web of course all the wonderful things that the web has enabled all the opportunities the content in the web depend on a well-functioning advertising ecosystem so the great apps that we all use the content we like to serve depend on there being advertising that funds this right and all of us in this room are in some way part of the advertising ecosystem some of us our advertisers some are publishers some are tech providers maybe some of you are all three at the same time and my sense is that for a long time data privacy and the online advertising ecosystem have struggled with each other and it has felt like at some point they’ve even been opposed to each other now this can no longer be we live in a privacy first world and that means that we have to speck respect users privacy as an industry in the 1980s thousands of people got up to demonstrate for data privacy and today it’s not thousands it’s millions of people who want their privacy to be protected they demand from us as an industry that we safeguard their data they want transparency about how we use their data and they want to be in control so I think ultimately our advertising ecosystem our whole industry can only work if we make it work for every participant in it for users for advertisers and for publishers and I think we face two significant questions as an industry how do we create ads that work in a privacy first work world how does that actually work and how do we live up to these new expectations about privacy which are our users expectations but they’re really also our own expectations so let’s start with the users what do users want well there’s lots of surveys about how users think about privacy and one of them says that 86% of global Internet users demand transparency about how data how their data is being used they want to understand the benefits of why they should share data and they want to see a clear link between sharing data and then getting something in return now at Google our philosophy on that is quite simple we want to protect users first we want to do more for our users and we want to do it with less data in fact we challenge our engineering teams what is the least amount of data that you can use to deliver more helpful products to our users so when we talk about Google products they have many users billions of users entrust us with some of our most precious content right with photos with files with email and that data is our users data it’s private and we lock it up for them we don’t use it for advertising users also trust us with data about their activity so that activity data for example what you’ve searched for what you what kind of videos you’ve watched for that actually is quite helpful for building better products so for example we may show users the fastest route home after a long day at work or we may show you a picture of a special moment in your life if we know that it was a year or two ago we may alert you to offers in a store if we know that a store that you’re nearby as a particular offer but there are some things that we will never do and I want to be very clear about that we do not sell personal information to anyone ever and we also do not use sensitive information about people for advertising purposes or for targeting and we also don’t use device fingerprinting to make targeting better and things like that so there we’re very clear on how to look at personal data and how to use it and what not to do and when we speak to users we know what they want is transparency and control the way we create that is the Google account and the Google account is something that has been developed by engineers actually here in Germany in Munich in our engineering Center it’s the one-stop shop where you can see all the data that Google has about you and where you can basically control that data we can decide what to do with it it provides you with both transparency as well as these simple to use controls so for for example you can decide whether you want to use products in a personalized way or not you can decide if you want your search history to be stored or not or your YouTube watch history to be stored or not now I think many of us like the benefits of having our activity inform some of the products and to make them better so we like the fact that that activity is there but perhaps we don’t want that data to be stored forever and all the time so just last week we announced some controls that I think are very useful in the sense that you can decide to auto delete any and all of your activity data after 3 or 18 months so I often hear the comment and in fact Phillip you’ve asked me a couple of times that’s all great but do people actually use any of these products do they care do does it even matter what you do and it turns out they really do so we see that in the usage of our products so for example the Google account is being accessed by more than 2.6 billion users every year and they don’t just go to the account to look it up they also make adjustments to their settings that fit their individual needs and preferences that’s also true for advertising so we have a section in the Google account that deals with advertising and more than 30,000 people go to that section every hour so while we sit here on stage or while you sit there and I stand on stage probably about half 15 15 thousand people will be visiting their ad settings what can they do there well they can decide what kind of ads they would like to see what interests them and what doesn’t or they can complete opt out of any ads personalization and we would like these controls and the Google account to be as easy to find for anybody as possible not hard to find not hidden but actually easy to find so we’re putting access to those settings into each one of our products very simple whether you’re in search in YouTube and Chrome or the assistant you should just always have access to your account settings and your privacy information so we’re rolling that out later this month now um people are using these controls we were bringing them into our products and we know that they work the web obviously needs to work for users it also needs to work for publishers I’m imagining many of you are publishers in one form or another you may have your own websites you may have your own apps so the question is how do you make money because the web requires you to have a model to make money and we want to make sure that that works for you so we provide platforms advertising platforms that hopefully some of you use like Adsense or the Google Ad manager where we help you run ads on your websites again the question is does that work can publishers make any money with that turns out that last year we paid out fourteen billion dollars to the publishers in our advertising networks that’s an enormous number fourteen billion dollars to publishers which I think shows that this advertising ecosystem actually works quite well for publishers as well now in order to be a part of this network and to profit from ads as a publisher you also have to play by the rules and that’s really important in our case that means you have to respect the user experience more than the ads and unfortunately we all know that the web is not only full of great content it’s also full of problematic deceptive and sometimes even illegal content so we take that very seriously as well and we have sort of 20 years of experience in dealing with strange content on the web and with publishers who may not be playing by the rule to give you a sense of the order of magnitude just last year we removed more than 700,000 publishers and app developers from our network because in fact we found that they were not playing by the rules and when we talk about Europe part of the rules of course also are all the legal requirements for example the gdpr requirements I can’t believe that it’s just a year ago that we were sitting here at omr and discussing the introduction of gdpr it feels like a long time ago so one of the key publisher requirements in gdpr is of course consent so as a publisher you need to have the consent of users to be storing their data and to be personalizing their experiences and we know that’s hard for publishers if your core business is not actually getting consent from users so we’ve developed the tool that makes that easy you can use it on your website you can use it in your app it’s a fairly simple tool in order to make sure that as a publisher you comply with these requirements and you can pass on that signal to ad networks that you work with we also make it easy for publishers to decide do we want to use personalized or non personalized ads because again we hear from publishers that’s a choice you would like to make now in some cases we are also a publisher and we realize that on our platforms as well we have to live up to the expectations and the standards of our users and that includes YouTube so our goal is to make sure that YouTube is a trusted environment an environment that both users and advertisers can trust and we recognize that there have been instances when content has appeared on YouTube that was inappropriate in some cases even illegal and we’ve also had instances where ads appeared next to that content so let me be very very clear on that to all of you because many of you are advertisers and publishers and content creators our p priority is to live up to our responsibility whether it is to users to our creators or to advertisers and that means that we take aggressive action to protect user from inappropriate content and we do that in a number of ways we do it through policies and enforcement we do it through technology and through people so on the policy side just in the last 12 months we’ve rolled out 30 significant changes to our policies for content on YouTube and enforce them quite strictly which means the bar has now been rising quite significantly for what kind of content we allow and also what kind of content is allowed to monetize so to show ads as a technology company of course we also use technology for detection and that helps us a lot to make sure we spot a lot of violations very early before even the first people will see them on the site and then finally people because ultimately we believe in human reviews of these topics of these of the content of questionable content we want human reviewers to make these decisions and we have significantly increased the number of people doing this so I say that because I want you to know that we take our obligation and our responsibility very seriously to create the kind of environment on YouTube that is actually suitable for brands that is safe for our users and that people can trust it and let’s talk about advertisers and you kick this off in the morning not only with some predictions on the future but also you talked about what two advertisers really want right one of the things you said in your speech was how do we make our consumers our users care what are the ways that we can make them care and you know as an industry we’ll talk a lot about data-driven marketing data being the key to making people care so let you understand who was interested in what I think data-driven advertising for us as an industry has been great it has helped us both increase performance as well as lower costs but as online marketers and as advertisers in a privacy first world we have to ask the question where does all the data come from for data different advertising how was it collected do we have the user consent to actually apply it and so earlier I talked about the fact that we challenge us at Google to not only look for more data but to do more with less data and I think that is an insight that I like to share with advertisers as well I think the key question for you as advertisers ultimately is how do you build the best advertising experiences with only the most relevant data because it’s not about collecting more and more data per se it’s about understanding what data is really relevant now if you’re an advertiser that oftentimes is your first party data it might be let’s say your sales data your CRM data it might be data about product profitability and if you know that data because it’s yours you’re the first party you’re the advertiser you can use that to really drive data-driven advertising or if you work with publishers many publishers also have really valuable first party data on audiences that they can share with you again if they have consent to do so and then finally we as Google can also help you on that because sort of through our first party data in a privacy sensitive way we can make sure that your campaigns deliver much better so we use machine learning on our side to help advertisers create what we call the perfect ad campaign while fully respecting user privacy again this is on an anonymized base of data that we would get from our users and so that should help you to access any kind of inventory search display video and app inventory through campaigns like smart campaigns and ad campaigns that you can use and I think the key insight here is as an advertiser you no longer have to use or look for all the data in the world because we can do a lot of the heavy lifting in the background on your behalf that’s the beauty of machine learning and that’s the beauty of the first party data that we have so I think together we can actually get this right as an advertising industry we can build great ad experience that work in a privacy friendly way how do we do that we have to increase the amount of transparency to users and give users more control and then we have to actually limit the amount of data that we use to what’s really most relevant in order to create helpful and amazing add experiences now let’s go back to the 80s one more time I talked about the invention of the web by Tim berners-lee and just last year Tim berners-lee launched the contract for the web it’s a big campaign where he hopes to sign up governments companies and individuals really to agree on the principles of the web for the next 30 years to ensure that we continue to have a thriving web ecosystem at the core of the contract for the web is data privacy it’s the same concern that had people take to the streets already in the 80s here in Germany the other thing sir Tim asks on all of us as an industry to do is to ensure that people have free and affordable access to the web and again I think that’s the link to all of us as an advertising industry because only with online advertising will there be free and affordable access to the web as a company we fully sign up to these principles that certain as outlined and in fact we commit to being a partner in this journey we think there’s a way to make advertising world work also in this privacy first world and we would like to do this with all of you we would like to partner with you to innovate you and to build an amazing ads ecosystem that works for everyone thank you very much [Applause] as I did with Adam earlier this morning I want to ask you a couple of predictions what do you think now as an advertising executive what is happening the next 12 months in our ecosystem okay predictions for advertising I think I think about them in three P’s actually the first P would be privacy and I talked about that at quite some length already here the second P I’m stealing from you because two years ago on the stage you said that podcasts would be really important I remember sitting in the audience and saying what what is he talking about how’s podcasts a big thing and I think you’ve shown that podcasts actually work and that they drive some relevance the third thing I would say has to do with personality so I think as brands we have to make sure that personality is there also in a data-driven world we’ve got some pretty cool examples this morning already four personalities and by the way I think you’re a bit of a personality yourself I hear that you have this this magazine is that actually true is there yeah it’s this one you’re talking about this one right that magnates you’ve one wrote this one not so bad-looking I’m just wondering if you have the right cover for the magazine that’s a good name and all that but is there like maybe another version that we could I don’t know I that’s Philip okay okay first of magazines and the reason why I show this is also that we have a whole number of these at our booth and so if your name is Philip or Philippa or any other name by the way free to pick one up Philip one one last question one on the serious side and other big platforms have had some more scrutiny at least to say the least in the past years there has been critical commenting up in legal issues is that over is that executive rated is that like a sort of the retro trend or the against rent what we seen earlier like everybody was very happy about Google and Facebook and was like like celebrating these companies and now all of a sudden we’re living in a different world where these companies looked at it very critically what’s your take on that and look we’ve also grown up as company and become much much bigger I think the tech companies have become much bigger we’ve become much bigger so with size comes increasing responsibility and comes in increasing amount of scrutiny and I think actually that’s fair enough and we have to live up to the public’s interest in Google we have to live with criticism we have to face it and then we have to get better so I’m not concerned about that I think it is part of becoming a bigger company the one thing I would say is the focus of the conversation about tech shouldn’t only be about large tech companies from the west coast I think the focus should be more on innovation and on building successful ecosystems in each part of the world particularly here in Germany so if the debate shifts too much on one side and forgets the other I think that’s a problem but you know as a company we understand that we have to answer questions all right okay Philip thank you very much for coming here for doing this and give meet the Google guys at the Bob pick up the magazine thank you very much thank you [Applause]

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