According to a blog post written by Google’s VP of Privacy Sandbox, Anthony Chavez instead of deprecating third-party cookies, the company would “introduce a new experience in Chrome.
On July 22, 2024, the tech giant shocked everyone by announcing it’s scrapping its plans to phase out third-party cookies.. Those tiny data nuggets that marketers have been desperately trying to replace with first-party data are now back in the mix!
What Are Cookies?
In the context of the internet, cookies are small text files saved in your internet browser (other examples besides Chrome include Firefox and Safari) or device when you go to a website.
They are used to identify your browser and/or device and track certain aspects of your online behaviour.
The idea is they help a website gather information about you to make the website more useful for you — and that often includes displaying ads that are targeted to you.
Many marketers had been scrambling to overhaul their strategies, all in anticipation of a world without third-party cookies. Their new focus was on harnessing first-party data to keep their campaigns on track.
But with Google’s sudden reversal, it seems like the cookie saga has taken a dramatic turn. Who could have seen this coming?
It will enable end users make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.
Privacy watchdogs, including the U.K. Competition and Markets Authority (CMA) and the Information Commissioner’s Office (ICO), have announced they will collaborate to review Google’s new plan.
As a result, the CMA is delaying its quarterly report, which was scheduled for release this month, until August 12.
A majority of B2C marketers in APAC didn’t believe cookie deprecation was ever going to happen, according to research firm Forrester – and that number was steadily growing.
“It’s no surprise that Google eventually scrapped its cookie deprecation plans after three delays in four years,” says Forrester Principal Analyst Xiaofeng Wang.
“Most marketers in APAC have seen this coming. According to Forrester’s Marketing Survey 2024, 53 per cent of B2C marketing decision-makers in APAC did not believe that Google would deprecate the third-party cookie, which increased from 49 per cent in 2023,”
“This would further dampen advertisers’ urgency to adopt Privacy Sandbox, Google’s initiative to replace third-party cookies with privacy-preserving technologies.”
Meanwhile, the market has already moved on to first-party approaches because cookies were “leaving money on the table”. said Wang
However, there are questions about how Google implements consent opt-ins or opt-outs, and risks of marketers getting caught out by ignorance of where cookies operate as local privacy laws change.
Regulators and industry experts quickly took to social media, press outlets, and private communications to express their mild surprise, relief, and curiosity about the future.
Have Marketers Already Moved On?
After numerous revisions to the timeline and process, the latest delay in Google’s deprecation plans came as no surprise to many industry experts.
Even though there was an expectation of further delays or the possibility that the plan might not fully materialise, a significant number of professionals are already adopting or planning to adopt cookieless solutions.
A March survey of 100 advertisers, publishers, ad tech, and data partners conducted by identity solution provider ID5 revealed that nearly two-thirds (63%) of advertising professionals anticipated that cookie deprecation would be postponed until Q1 2025.
Despite this, ID5’s latest State of Digital Identity Report shows that 72% of industry professionals have already implemented an alternative, with an additional 20% planning to do so.
Google aims to address industry concerns and maintain advertising effectiveness by keeping cookies. However, regulators like the U.K.’s Information Commissioner’s Office expressed disappointment, emphasising the need for better online privacy protections.
Since Google first announced its plans to deprecate cookies, marketing strategies leveraging first-party data and connected TV advertising — which do not rely on cookies — have become increasingly popular.
This decision follows objections from digital advertising companies and regulators to Google’s proposed alternative technologie and means that advertisers can continue using valuable data for targeted ads while users have more control over their cookie preferences.
In 2023, California Judge Yvonne Gonzalez-Rogers denied Google’s request for summary judgment in a lawsuit filed by users who allege that the company illegally invaded the privacy of individuals using “Incognito Mode.”
