Google, Mastercard in Secret Data Deal: Bloomberg

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Alphabet Inc.’s (GOOG) has an edge over its rivals when it comes to advertising data, and it has a deal with Mastercard Inc. (MA) to thank.

 

Citing four people with knowledge of the deal, Bloomberg reported that for about a year now, Google has provided select advertisers with access to a new tool that can show whether an online ad on one of its platform’s translated into a purchase in a physical store. To do that, Google paid millions of dollars to amass Mastercard transactions data without the two companies alerting the hundreds of millions of Mastercard cardholders around the world.

 

A Deal Four Years in the Making

According to Bloomberg, the deal is a culmination of talks over the course of four years and provides Google with a way to measure the results of ad spending on its platforms. It could also raise the ire of privacy experts who are already up in arms about the amount of data Google collects on users and what it does with it, since most consumers don’t expect their purchases in the physical world to be linked to what they are doing online. (See also: Trump Is Google's Biggest Federal Election Ad Buyer.)

 

The service, dubbed Store Sales Measurement, went live in 2017 with Google telling marketers at the time it had access to about 70% of U.S. credit and debit cards via unnamed partnerships. It wasn’t clear at the time who or what the partnerships were. Google has reached out to other payment companies but it is not clear if any Mastercard type deals were inked. With the tool, Google can match existing user profiles with purchases in stores providing advertisers with powerful data on which ads people clicked on and how it impacted their purchasing decisions.

 

Google: Tool Designed to Be Anonymous

A Google spokeswoman declined to comment about the Mastercard deal but told Bloomberg the tool was designed so that Google and its partners couldn’t see personally identifiable information of its users. “We do not have access to any personal information from our partners’ credit and debit cards, nor do we share any personal information with our partners.” The spokeswoman said the service is being tested with a small number of advertisers in the U.S. and that marketers see sales figures and how much can be attributed to Google but not how much the individual spent and what he or she bought. The test is available only to retailers and only applies to search and shopping ads, the spokeswoman added. (See also: FAANG Short Positions Have Surged 40% in the Past Year.)

 

Seth Eisen, a Mastercard spokesman, wouldn’t comment on the Google deal but told Bloomberg it only shares transaction trends to help merchants measure the effectiveness of ad campaigns. "No individual transaction or personal data is provided," he told Bloomberg. "We do not provide insights that track, serve up ads to, or even measure ad effectiveness relating to, individual consumers."

 

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