The IAB Tech Lab reveals that the Chrome Privacy Sandbox poses challenges to real-time bidding, impacting various essential advertising use cases. A majority of use cases, such as lookalike modeling, competitive separation, and ad reporting, are either not supported or have been significantly degraded, raising questions about the Privacy Sandbox's effectiveness.

The Privacy Sandbox, designed to enhance privacy, fundamentally alters the functioning of real-time bidding. The IAB Tech Lab emphasizes that this shift requires extensive industry adaptation, and its analysis aims to demonstrate the limited effectiveness of the Privacy Sandbox APIs in supporting crucial advertising use cases.

The Tech Lab's report delves into the technical viability of the Protected Audience API (PAAPI) within the Privacy Sandbox. It evaluates various use cases, including audience management, auction dynamics, creative delivery, reporting, and interoperability, providing a comprehensive understanding of the potential impact on online advertising.

The report raises concerns about the Privacy Sandbox's impact on supply-side platforms, potential bidding issues, and the absence of accreditation for its APIs. The IAB Tech Lab emphasizes the need for collaboration with Google to address industry concerns and improve the functionality of the Privacy Sandbox.