- July, 2024
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Charlie Nicholls
Google Backtracks on Cookie Depreciation Plans But the Market Has Already Pivoted
Google’s plans to depreciate third–party cookies in Chrome have crumbled. But what does this mean for marketers?
A Sudden Reversal?
Initially, Google’s commitment to eliminating third-party cookies was seen as a significant move towards enhancing user privacy.
Google first announced in 2020 plans to phase out third-party cookies, which are data stored in web browsers that allow companies to track users. However, after several delays, the company reversed this decision, citing concerns about maintaining its dominance in digital advertising amidst increasing regulatory pressures. The timing of Google’s announcement coincides with forthcoming reports from regulatory bodies such as the UK’s Competition and Markets Authority (CMA) and an impending antitrust case by the US Department of Justice (DOJ).
This change in strategy means that while the broader framework for tracking via cookies remains intact, individual users now have the power to block third-party cookies, potentially disrupting traditional affiliate marketing tracking methods.
Google’s updated policy allows users to decide individually whether to accept or block third-party cookies. This shift towards user control is crucial in offering individuals control over their privacy. However, this approach also introduces variability in how marketers can track and attribute online activities, making it essential for them to adapt to these changes proactively.
Regulatory and Market Responses
The industry’s reaction to Google’s decision has been mixed.
A Sigh of Relief for Marketers…
While it’s still up in the air if users will actually get more choices, the news that Google isn’t ditching third-party cookies anytime soon probably made a lot of advertisers breathe easier. A recent 2024 YouGov and Taboola study revealed that only 25% of advertisers felt prepared for a deprecation of cookies, and fewer than half (46%) approved of Google’s decision to postpone the phaseout. That said, Google’s decision wasn’t a surprise to many with a report from Forrester that was released at the start of this year reporting that 51% of marketers didn’t think Google would go ahead with the depreciation. After all the delays, it wasn’t exactly a bombshell!
Nonetheless, it remains essential for brands to reduce their reliance on cookies and prepare for upcoming changes. Progressive brands, advertisers, and media companies are already adapting by investing in first, second, and zero-party data, delivering on the demand from consumers for both privacy and personalised experiences. Marketers aiming to leverage personalisation to enhance customer experiences must prioritise a privacy-first strategy. This approach is vital to build trust with consumers and secure a competitive edge in the market.
Response From Consumers and Consumer Advocacy Groups
The decision to halt the phasing out of third-party cookies has reignited debates about consumer privacy. Recent surveys show that many consumers feel they lack control over the sharing and management of their personal information. Google’s proposed changes to privacy settings have done little to ease these concerns, as numerous users find the process too complicated and taxing.
Consumer advocacy groups and privacy experts are disappointed, pointing to the ongoing struggle for users to manage their privacy settings effectively. Stephen Bonner, Deputy Commissioner at the ICO said, “we are disappointed that Google has changed its plans and no longer intends to deprecate third party cookies from the Chrome Browser”.
Since the inception of Google’s Privacy Sandbox project in 2019, there has been a clear consensus that eliminating third-party cookies would greatly enhance consumer privacy. This belief set the expectation for a move towards a more privacy-focused internet. However, the vague nature of Google’s recent privacy updates has left both consumers and advocacy groups with unresolved questions. It is clear that for companies to build and maintain consumer trust, they must be transparent and provide consumers with control through alternative tracking and identification methods that prioritise their privacy.
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The Technical and Legal Challenges
Google’s approach to cookie deprecation has been criticised for its lack of clarity, particularly in how it intends to handle user consent mechanisms. The choice between opt-in and opt-out consent forms is crucial, as it influences the extent of user control over personal data. This ambiguity has led to concerns that Google may apply different standards to its own services compared to third-party advertisers, potentially complicating compliance with global privacy laws.
The Challenge Across Different Browsers
Despite Google’s stance, other major browsers like Safari and Firefox have already implemented stringent cookie-blocking technologies. With nearly 34% of global internet users opting for browsers other than Chrome, marketers face significant challenges in tracking user activities accurately across different platforms. This fragmentation underscores the importance of developing robust, cookie-independent tracking mechanisms.
Google’s New Privacy Settings
By allowing users to control cookie settings directly, Chrome’s approach to privacy becomes user-centric, rather than universally applied. This method can lead to inconsistent tracking and attribution, as user preferences will dictate the availability of tracking data. Marketers who continue to rely heavily on cookies need to reassess their tracking strategies to mitigate risks associated with inaccurate data collection.
Looking Ahead
Though we may not say “[third-party] cookies are being depreciated”, the trend toward reducing reliance on such methods continues. Marketers are and need to progressively move away from third-party cookies as they seek to create more effective engagement strategies and personalised customer experiences that also respect user privacy.
Consumers’ expectations for greater control over their personal data are driving this change, underscoring the need for solutions that offer genuine privacy assurances. Ultimately, achieving a balance where consumers can manage their data and privacy effectively while being delivered personalised experiences is crucial for the future of digital advertising.
Conclusion
While it may offer a temporary sigh of relief, Google’s decision to halt the deprecation of third-party cookies and focus on user-driven privacy settings exemplifies the need for privacy-focused customer data management strategies. As the landscape of internet privacy continues to evolve, as does the expectation for personalised experiences, innovative and flexible tracking solutions becomes increasingly critical. Marketers must proactively safeguard their tracking mechanisms to maintain accurate and effective digital marketing strategies, regardless of the browser or privacy settings their audiences choose.
About The Authors
Charlie Nicholls
