In an ongoing effort to navigate and improve consumer data privacy standards, Google Analytics will no longer be logging IP (Internet Protocol) addresses come July 1st, 2023. This can mean some major changes for advertisers and some digital media. Although experts say, it only makes sense in the context of more complex privacy standards in the future.
What are IP addresses used for?
The IP address is designed to allow one smart device to communicate with another device through the internet. An IP address is assigned to your home computer by your internet provider. Your internet activity goes through them and using your IP address, they can re-route information back to you.
Google has used IP addresses in nearly everything that they do. For instance, your IP address allows Google to have your locations. This has been valuable for your SERP (Search Engine Results Page) to pull local resources for your search.
Additionally, advertisers rely on IP addresses for targeting you with personalized ads.
Are there negative uses for IP addresses?
Cybercriminals typically use one of two ways to obtain your IP address: social engineering and online stocking. Once they have your IP address, they can use it for a variety of different criminal activities such as:
- Online stalking
- Tracking your location
- Using your IP address to download illegal content
- Hacking your devices
- Attacking your network
This breach of privacy and data protection is what led the EU to implement more laws and more stringent privacy regulations.
Google Analytics 4 (GA4) to replace Universal Analytics (UA)
Following the EU’s implementation of their General Data Protection Regulation (GDPR) in 2018, the international community has seen a wave of new laws being proposed to protect consumers’ personal information. In July of 2020, the EU issued a landmark data protection verdict that prohibits Europeans’ private data from being shared with servers in the US. Google has come under fire several times for not adhering to, and even as recently as December 2021.
The decision to replace Universal Analytics with Google Analytics 4, comes in response to such criticism. Not to mention, consumer data privacy preferences and ever-changing marketing strategies that no longer rely on third-party cookies. Third-party cookies have seen their last days, as Google announced they will be phased out in 2023.
How will this affect marketers?
Doug Hall, senior director of analytics at Media Monks, says “The industry has known for the best part of a decade what data with purpose looks like, and the loss of IP address resolution is inconsequential for analysts and marketers, with only upside for the users.” Hall believes most savvy and techy marketers have already stopped relying on tracking information from IP addresses. According to Hall, “GA4 is equipped to prepare marketers for a cookieless future.”
Consequently, the loss of IP addresses will impact marketers. Fortunately, Google will be providing a set of tools that will help alleviate those impacts.
What are other advantages of Google Analytics 4?
Google Analytics 4 will offer a variety of new integrations across Google Cloud, YouTube, Google Display & Video 360, Search, and more. You will also have the ability to track YouTube engaged views. GA4 comes with built-in privacy features and accommodates both web and app data collection.
Timeline
Google presented a timeline for Universal Analytics to transition to Google Analytics 4. Universal Analytics will stop functioning on July 1, 2023. However, the business version of Universal Analytics 360 will last until October 1, 2023. Businesses will continue to have access to their old data for 6 months after and are required to upgrade to Google Analytics 4.
