Google Attribution, Facebook Data & The Future of Ad Tracking | May 2017 2017-05-24 CNBC

In this segment, Matt Britton breaks down how Google’s new attribution tool could fundamentally reshape digital advertising measurement.
The core innovation is connecting online ad exposure to offline purchases.
Historically, digital advertising was measured through clicks or online conversions. If a consumer clicked an ad and purchased online, that sale could be tracked. But the majority of retail sales still occur offline. Google’s attribution tool aims to bridge that gap by partnering with third-party providers that aggregate anonymized credit card transaction data.
Here’s how it works: if a user sees an ad on a Google property and later makes a purchase at that retailer using a credit card, Google can match the ad exposure to the transaction at a high level. The company does not see the exact item purchased, but it can determine that a purchase occurred at a specific advertiser.
This matters strategically.
If Google wants to continue growing as a company, it must prove that digital advertising drives real-world sales, not just online clicks. With less than 15% of total retail transactions happening online, demonstrating offline impact unlocks a far larger revenue opportunity.
On privacy concerns, Matt argues that sensitivity varies by generation. Millennials, in particular, are accustomed to sharing personal data across platforms. In exchange for more relevant experiences and tailored content, many are willing to grant access to behavioral data. For them, the tradeoff often feels acceptable if the advertising is value-additive.
He contrasts that with older generations, who may be more concerned about financial identity theft than behavioral targeting.
The discussion also expands to Facebook’s data strategy. With trillions of data points collected from user interactions, Facebook holds one of the richest behavioral datasets in history. Matt predicts that Facebook’s data could increasingly power advertising beyond its own platform, influencing targeting across television, billboards, and third-party digital properties.
The broader takeaway: the future of advertising lies in attribution and precision. The ability to prove that digital exposure leads to offline sales represents a major step forward. As platforms validate this model, competitors are likely to follow, accelerating the convergence of online data and real-world commerce.