TLDR: What you need to know about Google and third-party cookies
- After years of pushing back their own deadline, Google has announced that they will not be deprecating third-party cookies from Chrome. (I know, right?)
- VP of the Privacy Sandbox Anthony Chavez has teased that Google will “introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing.”
- Marketers and media buyers should remain adaptable and prepare for a future where both third-party cookies on Chrome and the APIs in the Privacy Sandbox coexist.
- Incorporating third-party data strategies with robust first-party practices will ultimately result in a more resilient marketing approach.
- Your marketing strategies should ultimately be led by the privacy preferences of your target audiences.
Peanut butter and jelly. Macaroni and cheese. Cookies and… Google. Here’s to our favorite on-again-off-again relationship. Just when we thought they were breaking up for good, they’re back together — inseparable as ever.
In a decision that likely caused more than a few advertising jaws to drop, Google has announced that they will not be phasing out third-party cookies on Chrome. This announcement comes after multiple deadline pushbacks that had marketers, media teams, and publishers scrambling to prepare for a cookie-less future and a new life in the Privacy Sandbox.
I guess Google finally got tired of kicking this particular can down the street and decided to just crush it once and for all.
Instead, VP of the Privacy Sandbox Anthony Chavez says in an official blog post that Google will “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.”
This decision was heavily influenced by feedback from various stakeholders, including vocal advertisers, publishers, and regulatory bodies like the CMA (Competition & Markets Authority).
Why get rid of third-party cookies… and why keep them?
Since their introduction in the mid-1990s, cookies have fundamentally shaped our collective internet experience. Created by Netscape engineer Lou Montulli in 1994, first-party cookies were designed to enable websites to remember user information (i.e., items in a shopping cart, user names, preference settings, etc.) between website visits. First-party cookies are generated by the host domain and are considered essential for website performance.
The problem lies with third-party cookies. Third-party cookies are generated outside of the host domain to track users across the internet, collecting data as they move from site to site. This data is then used for serving ads, cross-site tracking, and retargeting.
Regulatory bodies worldwide, including the European Union with its General Data Protection Regulation (GDPR), have increasingly scrutinized third-party cookies. In response, major browsers like Mozilla Firefox and Apple’s Safari have already blocked third-party cookies to protect user privacy.
Google’s Chrome, however, has been slower to eliminate third-party cookies, seeking instead to balance user privacy against the needs of advertisers. A 2020 report by Epsilon showed that 69% of advertisers anticipated the death of the third-party cookie would have a greater impact than the GDPR and the California Consumer Privacy Act (CCPA), and 70% felt that digital advertising overall would take a massive step backward.
Google’s Privacy Sandbox
With cookie deprecation set firmly on the backburner, Google began the Privacy Sandbox initiative to develop a set of privacy-preserving alternatives to third-party cookies. This included the introduction of several APIs, such as:
- Topics API: Replaces third-party cookies by categorizing user interests without tracking individual browsing behavior.
- Protected Audience API: Allows advertisers to run targeted ads without revealing personal information.
- Attribution Reporting API: Measures ad performance without tracking users across sites.
Google also introduced CHIPS (Cookies Having Independent Partitioned State) as part of the Privacy Sandbox initiative, which allows cookies to be partitioned by the top-level site, preventing cross-site tracking while still enabling functionality like embedded services.
The reception of Google’s Privacy Sandbox tools has been mixed. Many testers expressed concerns about the potential anticompetitive impact, particularly on publisher CPMs and the control media owners have over ad auctions. And in late June 2024, ad-tech company Criteo reported that publishers could potentially lose about 60% of their revenue from Google Chrome if they were forced to rely solely on Privacy Sandbox tools.
It seems like Google keeping third-party cookies on indefinitely may be a hedge on their bet. If users opt out of third-party tracking, there’s still a means to support advertiser tracking — albeit an imperfect one.
According to Chavez, Google will “continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility.” So, any efforts you’ve made in the transition to the now defunct cookie-less future were not in vain.
Adapting to Google’s third-party cookie decision and best practices for marketers
This is big news, but it’s not really a seismic shift. There is much that will change with this announcement, but there are many best practices that will remain the same.
Marketers and media buyers should remain adaptable and prepare for a future where both third-party cookies on Chrome and the APIs in the Privacy Sandbox coexist. This dual environment will likely involve adapting current marketing strategies while integrating some new tools and practices.
Leverage first-party data
Marketers love cookies. Consumer opinion on cookie use is still complex and somewhat divided. Many consumers have privacy concerns, driving a significant portion to reject all cookies regularly and without much thought. According to GWI research, approximately 20% of consumers will decline cookies due to worries about how their data is being used. This trend is influenced by growing awareness and regulations spotlighting data privacy issues, and will likely increase.
FACT: According to data from 33Across, the top three industries that are most reliant on cookies for U.S. programmatic ad buys include:
Even while third-party cookies remain available, it’s important to incorporate a more first-party-data-focused approach for a privacy-conscious world. Google’s Durable Growth Center recommends advertisers to “continue adopting solutions that drive growth without compromising people’s privacy.” It’s good to think of this as a reminder to develop a diversified approach that doesn’t rely solely on one method of tracking or data collection. Combining various data sources and techniques will provide a more resilient strategy.
Best practices for collecting first-party data still include the following:
- Ensuring transparent communication with users about data collection methods and purposes
- Obtaining explicit consent
- Using robust site tagging to track user interactions accurately
Done right, first-party data allows marketers to create personalized experiences and accurate customer segments, enhancing engagement and conversion rates while maintaining compliance with privacy regulations.
So, all those articles about strategies for a cookie-less future still have value.
Explore alternative server-side conversion tracking solutions and key benefits
It’s also a great idea to test plans that do not rely on signals and explore alternate tracking solutions like server-side conversion tracking. Also known as enhanced conversions, conversions API, or CAPI, this tool has emerged as a modern approach to maintaining conversion tracking capabilities in an increasingly privacy-centric environment.
Envisionit’s technology team uses server-side tracking to help future-proof our client’s media strategies and stay ahead of the curve. Digital marketers should understand the context, benefits, and potential pitfalls of server-side tracking to make informed decisions that optimize accurate and compliant data collection and usage.
Diving into the Privacy Sandbox
In computer security, a “sandbox” is a controlled environment where code can be run safely and isolated from the rest of the system. The goal of the Privacy Sandbox initiative is to create a controlled environment for web technologies that protect user privacy while still allowing the essential functionalities of the web — such as personalized advertising and analytics — to operate.
The Privacy Sandbox APIs are still under development, with refinements being made based on industry feedback and testing outcomes. APIs like FLoC (Federated Learning of Cohorts), which is used to cluster users into groups with similar interests, have already seen several iterations.
Some Privacy Sandbox APIs are available for testing by developers and advertisers. For example, the Conversion Measurement API,which helps measure ad conversions, and FLEDGE (First Locally-Executed Decision over Groups Experiment), which focuses on remarketing and custom audiences, have been made available for experimentation. Google encourages participation in Privacy Sandbox testing to gather feedback and improve these tools.
Stay updated with the development of Privacy Sandbox APIs
This is not the end of this story. And as new tools and the regulations that govern them emerge and evolve, it’s going to be very important to be in-the-know with what’s happening, what’s available, and how to remain competitive.
- Google’s Privacy Sandbox Website: Regularly check the official Privacy Sandbox website. This site provides updates, timelines, and detailed explanations of the various APIs and their progress.
- Google Developers Blog: Follow the Google Developers Blog for announcements, technical insights, and implementation guides.
Not a cookie cutter approach
By sticking to established best practices and keeping user experience front and center, marketers can ensure they remain effective, resilient, and compliant in their advertising efforts. Use the tools that are available, but wield them responsibly. The key is to be adaptable, stay informed, and be proactive and creative in leveraging new technologies and strategies.
Rest assured — the balance between privacy and advertising effectiveness will absolutely continue to create new controversies and capabilities.
Contact us to see how Envisionit can keep you up to date with the latest marketing technology and analytics developments to maximize your marketing efforts.
