Google’s announcement on July 22, 2024 that it won’t remove third-party tracking cookies from its Chrome browser after all has left many advertisers wondering: “What happens now?”
“We are proposing a modern approach to tracking cookie depreciation that enhances user choice.” I have written Anthony Chavez, vice president of Privacy Sandbox at Google. “Rather than getting rid of third-party cookies, we’re introducing a new experience in Chrome that gives users the power to make informed choices that apply across their web browsing.”
On July 22nd, Google announced a “new path” regarding cookies.
Privacy advocate Warned For decades, there has been debate about the little bits of code we affectionately call cookies, which, when placed on web browsers, can track individuals across websites, Google search queries, locations, and other behaviors.
However, third-party and tracking cookies There is a legitimate use Used for cross-site personalization, targeted advertising, and website analytics.
Either way, all this data collection means that Google, Criteo, and other companies know a lot about just about everyone online, making “internet privacy” a flimsy name.
After nearly five years of promising to remove tracking cookies, Google is no longer promising to do so, leaving advertisers wondering about their future.
There are five things to consider:
Will regulators approve?
Google’s plans to keep its cookies and Privacy Sandbox still need to be approved by regulators.
Simon Poulton, executive vice president of innovation and growth at marketing company Tinuiti, said in an email to Practical Ecommerce that regulatory approval is a “cannot be ignored” when discussing Google’s decision.
Google faces government scrutiny Consumer Privacy It is also negotiating with advertising agencies that rely on cookies and are concerned that a cookie kill would strengthen Google’s own advertising platform.
This latter group also includes the UK Competition and Markets Authority (CMA), which is investigating Google’s Privacy Sandbox. The CMA has also warned that it will not tolerate ad targeting via the sandbox.Topic APIFor example, Google has expanded its dominance in the digital advertising industry.
Referring to a Tinuiti report published in April, Poulton wrote: “As part of our reporting, we noted that privacy and competition are in direct and irresolvable tension.”
“We have even suggested that, under current circumstances, it may not be possible for Google to go ahead with a complete phaseout (and move to Privacy Sandbox),” Poulton continued.
Based on Google’s announcement, this appears to be the case.
Meanwhile, the CMA: Website“The CMA will continue to work closely with the (Information Commissioner’s Office) to carefully consider Google’s new approach to Privacy Sandbox.”
So while it’s likely that Chrome, third-party cookies, and the Privacy Sandbox will move forward as proposed by Google’s Chavez, there’s no certainty.
Will Google benefit?
The CMA and other groups argue that Google’s Privacy Sandbox strengthens the company’s position in the advertising business because its technology can be used for targeting.
“We have concerns that Google’s new[sandbox]framework will make it more difficult for other companies to operate effectively in the advertising space and limit competition,” Piotr Korzeniowski, CEO of analytics platform Piwik Pro, said in an email.
But others argue that tracking cookies will boost Google’s existing advertising business.
So, which one?
“Google is in a precarious position owning the most popular browser. Ad Networkand many other of the ‘most popular’ digital products and services,” Korzeniowski wrote.
So Google’s decision to keep cookies but go ahead with Privacy Sandbox was likely less about benefiting its own advertising business and more about taking a balanced approach for the company as a whole, its customers and regulators.
What is your industry preference?
Let’s assume that various privacy and competition-focused regulatory agencies approve Google’s “new path for a privacy sandbox on the web.” The industry is participant Do Tinuiti, Piwik Pro etc. choose Cookies or Sandbox?
“As privacy awareness grows, we expect to see more users opting out of cookies, especially as regulations become stricter, opt-out mechanisms become clearer, and consumer awareness of the issue increases,” Korzeniowski added. “Google’s plan to integrate a consent mechanism into its browser is a bold move. But they did not plan this without ensuring that it would not have a significant impact on their data collection and advertising business. The way they designed the mechanism will ensure they keep the opt-in rate above 70%.”
Walled Garden
Third-party tracking is different from first-party tracking: for example, TikTok doesn’t need tracking cookies to understand the interests of its visitors because it has first-party data.
“Please remember that (third-party) cookies have no effect on search or social (or any walled garden) tracking or ad performance, so while this is big news, we constantly remind everyone that many advertisers on Meta, Amazon and Google-owned platforms will not be affected in any way by the deprecation of (third-party) cookies,” Tinuiti’s Poulton wrote.
One could argue that these platforms also profit from third-party data, but advertisers on Instagram and Facebook, for example, are likely to be less affected in the short term.
But deleting tracking cookies would disrupt many other services, including those that place ads on publisher websites, in email messages and in streaming videos.
Advertiser
The ultimate takeaway from Google’s cookie announcement is that digital advertising is changing – meaning cookies and sandboxes can exist together – what worked five years ago may not work now or in the future.
What remains the same is First-party dataThis is what advertisers should focus on in this new era of advertising.
