Google will not deprecate Third-Party Cookies: What it means for Digital Marketers

Google has announced a significant shift in its Privacy Sandbox initiative. After multiple postponements, Google planned to phase out third-party cookies in Chrome entirely in 2025. However, following extensive feedback and industry pressure, Google will now offer a “user choice” model. This means Chrome users will be able to opt-in or out of third-party cookies, while the Privacy Sandbox APIs will still be available to support privacy-preserving advertising solutions.

So, is this Apple’s ATT all over again?

Many marketers will be reminded of the launch of Apple’s App Tracking Transparency (ATT) framework in 2021, which required apps to ask their users for tracking permission. This move led to low consent rates and a significant loss of data for app developers, even contributing to a nearly 30% drop in Meta’s stock price in 2022.

Google’s decision to maintain third-party cookies alongside Privacy Sandbox solutions could have repercussions for the whole digital marketing ecosystem. The dual environment introduces new layers of complexity in ad targeting, measurement, and optimization, requiring marketers to adeptly navigate both systems.

Additionally, the EU Commission, leveraging the Digital Markets Act (DMA), will scrutinize this development closely. Google’s approach could again raise antitrust issues, particularly regarding the presentation and management of user choices.

The impact on publishers is also uncertain, while some fear reduced revenue due to diminished targeting capabilities, others see an opportunity in adopting more privacy-compliant advertising methods. This evolving scenario underscores the need for the ad ecosystem to remain agile and adaptable to these profound changes.

User Choice: A slow Death for the Third-party Cookie?

A critical factor in this new landscape will be Google’s user choice model, as marketers must understand and anticipate user behavior in opting in or out of third-party cookies. This decision directly influences data availability and targeting precision.

If user choice leads to consent rates similar to those seen with Apple’s App Tracking Transparency, the landscape of data collection could be profoundly affected.

Apple’s ATT model resulted in a significant drop in user consent for tracking, with only a fraction of users opting in. If Google’s user choice model in Chrome follows a similar trend, the amount of useful data collected through third-party cookies will diminish drastically. This reduction in data availability would challenge the effectiveness and viability of third-party cookies as a technology.

Advertisers and marketers rely on comprehensive data to optimize targeting and measure campaign success. Without sufficient user consent, the quality and quantity of data would be insufficient to maintain these standards.

Even before Google’s recent changes, the effectiveness of third-party cookies as a tracking technology was rapidly waning. Ad blockers, consent banners, and tracking prevention mechanisms like Apple’s Intelligent Tracking Prevention (ITP) in Safari either distort web data significantly or block tracking altogether.

With Chrome now also reducing the amount of tracking data collected, it seems obvious that the remaining data will for sure not be sufficient to maintain ad effectiveness and efficiency at a level acceptable to marketers.

Consequently, this could still lead to the obsolescence of third-party cookies in general, as they would no longer provide the robust insights necessary for effective digital advertising. In any case, Marketers will be forced to seek alternative methods, such as first-party data collection and privacy-compliant technologies, to sustain their marketing efforts and ensure accurate, impactful targeting in a privacy-focused era.

In other words, the third-party cookie is still on its way out – but the process might take a bit longer.

• Several new uncertainties will emerge with Google’s latest decision:What percentage of users will choose to enable third-party cookies?
• How will the user interface for managing cookie preferences be designed?
• How will regulators, particularly in the EU, respond to this user-choice model?
• How will the coexistence of third-party cookies and Privacy Sandbox solutions affect ad targeting and performance?

Google will need to address these uncertainties before rolling out the new system. However, some factors, like consent rates, ad revenue, and effectiveness among others, can only be reliably tested in real-world scenarios. How the results from these tests will influence the final rollout remains an open question.

The Path Forward: First-Party Data Strategies

In an era of increasing uncertainties in digital marketing, the importance of first-party data collection has never been more pronounced. As third-party cookies become less reliable, marketers must pivot towards strategies that leverage direct customer data to maintain effective targeting and personalization.

Collecting and leveraging first-party data is paramount. This involves gathering data directly from customer interactions on owned channels such as websites and apps. By doing so, companies can build a rich reservoir of customer insights that are both accurate and privacy-compliant.

Enhancing customer relationships is another crucial step. By fostering stronger connections with customers, businesses can encourage more data sharing. This involves creating personalized experiences that make customers feel valued and understood. When customers see tangible benefits from sharing their data, they are more likely to do so willingly, providing marketers with the information needed to tailor their marketing efforts effectively.

By focusing on these first-party data strategies, marketers can navigate the challenges posed by the diminishing role of third-party cookies. Investing in direct data collection, building robust customer relationships, leveraging privacy-first technologies, and staying compliant with regulations will be key to maintaining effective and tailored marketing efforts in the future.

First-party data collection via server-side tracking remains the gold standard for web tracking, offering full data control and the highest data quality. Hybrid systems like JENTIS provide flexibility by allowing full server-side tracking while also enabling client-side tracking via third-party cookies to maximize their potential until they are fully phased out. This dual approach ensures that marketers can maintain robust tracking capabilities and adapt seamlessly to the eventual obsolescence of third-party cookies, effectively leveraging both current and future technologies.

Conclusion

Google’s decision to continue supporting third-party cookies in Chrome is a noteworthy development. But it might not turn out to be a major shift in the digital advertising landscape because – despite this change in approach – third-party cookies are still likely to become obsolete, as originally planned. The phase-out will occur more slowly and less predictably as the industry adapts. This shift introduces new complexities and uncertainties, underscoring the need for adaptability and resilience. By investing in first-party data strategies, marketers can effectively navigate this transition and continue to deliver personalized, privacy-compliant advertising experiences.

For further details on Google’s Privacy Sandbox update, visit Google’s official blog post.

Would you like to find out more about how you can utilise the end of third-party cookies for your marketing? Book a free consultation with one of our experts.

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