Full Answer
Consent Mode V2 is Google's way of reconciling its ad and analytics products with consent law. Rather than a tag firing or not firing, your consent platform sets named signals that Google's tags read: ad_storage and analytics_storage for cookie use, and the V2 additions ad_user_data and ad_personalization covering whether user data may be sent to Google and used for personalised ads. When consent is denied, tags switch to cookieless pings and Google models the gap rather than receiving full data.
Whether you need it is mostly about audience and geography. If you use Google Ads or GA4 and reach users in the EEA, UK, or Switzerland, Consent Mode V2 is in practice mandatory: since March 2024 Google has required these signals to keep populating remarketing audiences and to keep ingesting conversions from European users. Skip it and your audience lists stop refreshing and reported conversions fall.
On WordPress, you don't hand-code this. A certified consent management platform such as Complianz, CookieYes, or similar integrates with Consent Mode and ensures the signals are set before Google's tags execute. The important nuance is that Consent Mode reduces, but doesn't eliminate, data loss from rejection; it lets Google model what's missing. First-party, server-side measurement remains the way to recover the conversions modelling only estimates.