Google’s latest move shifted its position on third-party cookies. Instead of removing them entirely, Google will now retain third-party cookies but require user consent. This change has significant implications for affiliate media buyers, who must now navigate a landscape where user consent becomes crucial for ad targeting and tracking.
Key Announcement Details
Previously, Google planned to phase out third-party cookies by 2025. However, recent announcements indicate that third-party cookies will remain in Chrome.
Google’s Updated Approach
The tech giant has decided not to deprecate third-party cookies as initially planned. Instead, Chrome users will now have the power to “make an informed choice” about their web browsing data.
Google has announced that they will be updating the Privacy Sandbox project, which was created to protect user privacy online while still supporting ad-supported sites we all use. Their progress was based on feedback from regulators such as the UK’s Competition and Markets Authority (CMA) and the Information Commissioner’s Office (ICO), as well as publishers and advertisers.
Google initially planned on phasing out third-party cookies on Chrome, used to track users across sites to target ads. But now, they’ve changed this strategy and are focusing more on “user empowerment.”
Google’s statement: “… we are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time. We’re discussing this new path with regulators, and will engage with the industry as we roll this out.”
On July 22, 2024, the UK government commented on Google’s latest move: “Google announced that it is changing its approach to Privacy Sandbox. Instead of removing third-party cookies from Chrome, it will be introducing a user-choice prompt, which will allow users to choose whether to retain third-party cookies. The CMA will now work closely with the ICO to carefully consider Google’s new approach to Privacy Sandbox.”
Key Changes
- User Choice: Chrome users will decide whether to allow or block third-party cookies, giving them more control over their privacy.
- IP Protection: Google is enhancing Chrome’s Incognito mode with IP Protection to provide a more private browsing experience.
- Privacy Sandbox APIs: Google will continue to develop and maintain its Privacy Sandbox APIs to create privacy-preserving advertising solutions.
What Should Marketers Do?
While this change might suggest you can pause your preparations for a cookieless future, it’s best to stay the course and see how Google’s plan unfolds. Continue to develop alternative strategies and monitor user opt-in trends.
The Cookie Continuity Crisis?
Miles Pritchard, Partner in Data and Technology Transformation, illuminates the implications of Google’s latest move. He describes the news that Google will not be removing third-party cookies from Chrome as a significant reversal in the ad tech industry. Initially announced over four years ago, this marks a critical shift in Google’s strategy with wide-sweeping implications for ad targeting, personalization, and measurement across digital marketing.
Pritchard explains that the decision stems from the challenges faced by the Privacy Sandbox initiative, including regulatory pressures and underwhelming test results. As a result, Google Chrome will not entirely remove third-party cookies but will instead provide users with the option to consent to their use.
Mixed Emotions
According to Pritchard, the reaction within the adtech community is mixed. Established ad tech companies that continued using third-party cookies might feel relief, seeing renewed optimism in future revenue streams. Conversely, businesses that invested heavily in preparing for a cookieless future may experience frustration and disappointment. The time and effort spent developing non-cookie alternatives, though not wasted, now face a different landscape.
New Path for the Privacy Sandbox
Timothy Roberts, an expert in Growth, Revenue, and SaaS, also comments on the Google’s latest move. He emphasizes the importance of user choice and the need for further privacy controls. Roberts notes the balance Google must strike between advertisers’ needs and privacy considerations, along with the implications of competition regulations.
He explains that the removal of third-party cookies has made tracking, attribution, and retargeting more complex and expensive. Retaining third-party cookies in Chrome provides businesses and marketers more time to adapt to these changes. However, it is only a temporary solution, and the industry must still prepare for a future with more privacy-centric technologies.
Roberts highlights Google’s announcement: “Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time. We’re discussing this new path with regulators, and will engage with the industry as we roll this out”
Google’s latest move to Keep Third-Party Cookies: What We Know and Don’t Know
Michael Sweeney, Marketing Director in AdTech & MarTech, provides further insights into Google’s latest move. He outlines what is known and unknown about the decision:
What We Know:
- Google is proposing an updated approach that elevates user choice.
- Instead of deprecating third-party cookies, Chrome will introduce an experience that lets users make an informed choice, adjustable at any time.
- Privacy Sandbox APIs will continue to be available and improved for better privacy and utility.
What We Don’t Know:
- Regulatory reactions: The views of the UK’s CMA and other regulators on this change are still unclear.
- Implementation details: It is still unknown how the new user experience will work, whether it will be a consent-management style approach, and how Privacy Sandbox will fit into this new scenario.
- Industry adoption: Whether companies will continue to invest in Privacy Sandbox, given its criticisms, and the future of universal ID solutions and third-party cookie alternatives, remains uncertain
Industry Reactions
Rodney Perry, Head of Data And Analytics UK, Making Science “Google’s decision ultimately levels the playing field, as both cookie-based and cookie-less solutions will have the opportunity to compete for user attention and drive performance. Amid this U-turn, brands are advised to focus on leveraging first-party data, especially since other browsers have already eliminated third-party cookies.”
Julia Draghici, CEO, CPV One “Unexpected decision by Google, but still, good that a decision was finally made. In the last few years the ad tech industry adapted to no longer use third party cookies but the uncertainty was not helping. Media buyers understand that using first party data is better, mostly because, even having the biggest share, Chrome is not the only browser. Let’s see how the consent will work out.”
Christoph Kruse, Marketing Director, MINT “The continuation of third-party cookies will surely bring some relief to the advertising world, but it is not the solution that solves all challenges the industry is still facing. Despite the availability of cookies, we have seen a decline in acceptance of such cookies.”
Madi Bachar, VP Global Sales, MGID “Google’s decision wasn’t a massive surprise: too much money was at stake, and they couldn’t find a solid alternative. Judging by the jump in Criteo’s shares following the news, the industry has welcomed the move. The question is, what will be the fate of Privacy Sandbox?”
Mark Debenham, VP Growth Marketing and Marketing Operations, Adverity “Google’s decision to keep third-party cookies is a win for those who have prioritized flexible data management. Businesses already working with infrastructure that allows them to switch between different data sources and targeting approaches will be well-placed to adapt in line with varying insight access.”
Geoffroy Martin, CEO, Ogury “In response to regulatory and market pressure, Google will be leaving the decision of whether or not to use third-party cookies up to consumers. It remains to be seen how it will implement this change, but if other ecosystems are any indication, this might lead to a vast majority opting out of tracking.”
Karen Nelson-Field, CEO and Founder, Amplified Intelligence “Not only is this decision unsurprising, but it also doesn’t change the current path of media measurement evolution. Focus has long been shifting towards attention as a key metric for understanding what was seen, not simply observed – and it’s going to keep moving that way.”
Roy Yanai, VP Product, AppsFlyer “Google’s statement that it will give users the choice over consent is vague and creates a very important question: Will users need to opt-in or opt-out? When Apple launched its ATT framework in 2021, which gave users the choice to opt-in rather than opt-out, we saw the number of ‘tracked’ users drop from 85% to 20%.”
Ben Cicchetti, SVP, Marketing & Communications, InfoSum “Google’s announcement doesn’t change the fact that third-party cookies remain bad for consumer privacy. We already operate in a largely cookieless ecosystem, and any comprehensive media strategy must therefore account for numerous cookie-free environments.”
Travis Clinger, SVP, Activations and Addressability, LiveRamp “The update from Google Chrome is a major development and welcome news for those still preparing for a cookieless future, but not one that changes where our ecosystem is headed: marketers want to personalize and measure the consumer journey, while consumers rightfully want unprecedented control and transparency of their privacy.”
Conclusion
Google’s decision to retain third-party cookies with user consent marks a significant change for affiliate media buyers.
While it introduces new challenges in terms of data collection and compliance, it also offers opportunities to build trust and innovate in ad targeting.
By focusing on consent management, leveraging first-party data, and exploring new advertising methods, media buyers can navigate this transition effectively.
Google’s latest decision on third-party cookies is a temporary reprieve. However, the need for privacy-compliant solutions and transparent data practices remains crucial. Keep enhancing your strategies to adapt to this evolving digital landscape. With careful planning, you can stay ahead and succeed in the competitive world of online marketing.