Surprisingly, Google announced it will retain third-party cookies in Chrome, offering users a choice rather than completely phasing them out. This is a significant shift from their initial plan to deprecate cookies by 2024, influenced by feedback from advertisers, publishers, and regulatory bodies.
The key points from the 22nd of July decision are:
- Reversal on Cookies: Google will retain third-party cookies in Chrome, allowing users to choose instead of removing them entirely.
- Privacy Sandbox: Google continues to develop and invest in Privacy Sandbox APIs as alternatives to third-party cookies.
- Regulatory Engagement: Google is in discussions with regulators, including the UK’s CMA and ICO, about this updated strategy.
- Industry Impact: This is in response to feedback about Privacy Sandbox’s performance and privacy protection.
- Testing Results: Initial tests of Privacy Sandbox showed promising ad performance recovery, but the technology still requires improvement and wider adoption.
- User Choice Mechanism: Users will set their cookie preferences through a one-time opt-out prompt in their Chrome browser, which they can adjust at any time.
- Continued Development: Google plans to refine Privacy Sandbox technologies and introduce new privacy measures, like IP address obfuscation in Chrome’s Incognito mode.
Industry Reactions and Implications
Our LinkedIn feeds and the wider advertising industry are awash with reactions to Google’s decision. While the initial tests of Privacy Sandbox showed an 86% recovery in advertiser spending for DV360 and 89% for Google Display Ads, the road to full adoption and optimisation is still underdeveloped and requires a larger level of adoption.
For Ben Rooke, Senior Performance Lead, “the damage to the accuracy and effectiveness of cookie-based tracking is already done. The rise in VPN usage and adblocking solutions means that by adding an opt-out tool, third-party cookie tracking solutions will continue to lose effectiveness.” He highlights the shift towards probabilistic solutions and advanced tools, noting that “upscaling solutions such as Google’s consent mode, along with digital MMM products like Meta’s Robyn, are now more accurate and effective solutions, than traditional cookie-based tracking.”
Guillermo, Managing Partner, Digital & Data, whose thoughts were featured in The Media Leader, shares a similar sentiment: “Third-party cookies are becoming redundant. Cookie acceptance rates are at an all-time low, averaging around 40%.” He explains that Total Media has shifted focus to behavioural data and contextual advertising, effectively engaging audiences without relying on third-party cookies.
Anita Lusanska, Head of Digital Operations, advises that “Google’s decision should not prompt advertisers to abruptly change their plans. Instead, they must continue implementing effective audience segmentation strategies paired with robust measurement and maintaining clean data without depending on browser-level identifiers. Insights from Apple’s removal of cookies have demonstrated that only a small fraction of users will consent to cookies when prompted, indicating that the mechanics of presenting these choices to users significantly impact the retained information percentage.”
Max Ford, Digital Account Director, reinforces this view: “Google’s decision to keep third-party cookies in Chrome is significant but does not change the industry’s overall direction. Third-party cookies are becoming redundant for targeting because consumer privacy and compliance concerns have already taken precedence. The low level of opt-ins for cookie acceptance shows how consumers feel, and the industry has made significant adjustments to prepare for a cookie-less future. Marketers should continue following the roadmap that emphasises first-party data, consent management, and contextual targeting.”
Yasmeen Frasso, Senior Digital Account Director, emphasises the outdated nature of third-party cookies: “The news of Google stepping back does not change much. Third-party cookies remain outdated, and we have moved beyond them to enhance accuracy and privacy compliance.” She advises advertisers to strengthen their first-party data strategies and embrace unique ID solutions to refine targeting and user engagement.
According to Sam Benzie, Digital Account Director, “The industry has already prepared for a world without third-party cookies. Marketers now have the opportunity to elevate their campaigns with behavioural and contextual targeting solutions.” He suggests that strategies should focus on enhancing user experience through first party and behavioural research.
Sasja Steenvoorde, Data Strategy Director, points out that “Google’s decision brings several practical challenges for the advertising world. Privacy Sandbox APIs, such as the Topics API, face significant hurdles in matching the precision of third-party cookies. With limited topics and browser-based processing, these APIs may struggle to provide the granular targeting advertisers have come to expect. Cross-browser functionality remains a major obstacle, as only Chrome is implementing these APIs, leading to potential fragmentation in user experiences and campaign performance.”
Moving Forward: Advertiser Strategies in a Changing Landscape
Despite Google’s U-turn, the digital marketing industry is already adapting to a cookie-less future. The focus is now on leveraging first-party data and innovative targeting methods that prioritise user experience and privacy.
Enhancing First-Party Data
Advertisers should invest in robust consent management systems and create compelling value exchanges to gather first-party data. This approach not only complies with privacy regulations but also builds trust with users, leading to more effective targeting and engagement.
“Advertisers should focus on strengthening their first-party data through strong consent management and creating value exchanges for their user base,” advises Yasmeen Frasso. “Embracing unique ID solutions can further refine targeting and user engagement.”
Embracing New Technologies
The rise of probabilistic solutions and advanced tools like Google’s consent mode and Meta’s Conversions API offers more accurate and effective tracking alternatives. These technologies enable advertisers to maintain performance while respecting user privacy.
Ben Rooke underlines the importance of these technologies: “Upscaling solutions such as Google’s consent mode, along with digital MMM products like Meta’s Robyn, are becoming more accurate and effective than traditional cookie-based tracking.”
Behavioural and Contextual Targeting
Shifting to behavioural and contextual targeting allows marketers to deliver relevant messages that resonate with users’ interests and browsing activities. This strategy not only enhances user experience but also drives better campaign performance.
Sam Benzie notes, “Marketers now can elevate their campaigns with behavioural and contextual targeting solutions. Strategies should focus on enhancing user experience through first-party and behavioural research.”
Max Ford adds, “Marketers should continue following the roadmap that emphasises first-party data, consent management, and contextual targeting. The industry’s overall direction towards consumer privacy and compliance remains unchanged.”
Adapting Measurement Methodologies
Sasja Steenvoorde emphasises the need for sophisticated Customer Data Platforms or custom data management solutions. Additionally, investment in alternative measurement methodologies is crucial. “Media Mix Modelling, which requires advanced statistical skills and comprehensive historical data, offers a privacy-friendly approach to attribution. Attention metrics, such as scroll depth and active time monitoring, can provide valuable insights into user engagement without relying on individual-level tracking. Implementing robust incrementality testing frameworks will also be key in measuring the true impact of advertising efforts in this evolving landscape.”
Conclusion
Google’s decision to retain third-party cookies while continuing to develop Privacy Sandbox technologies reflects the complex balance between user privacy and advertising effectiveness. Advertisers should stay agile, adopting innovative technologies and strategies to navigate this evolving landscape. By focusing on first-party data and innovative targeting methods, they can ensure sustainable success in a future where privacy and personalisation go hand in hand.
For more information on Google’s decision to retain third-party cookies and how it could impact advertisers contact our expert team today.
Author: Total Media Digital Team
