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In a surprising turn of events, Google recently announced that it will not deprecate third-party cookies in Chrome as originally planned. This decision has sent ripples through the digital marketing world, leaving many who had been planning for the change for half a decade wondering about it's implications. Let’s dive into what this means for marketers and how to navigate the changing ecosystem.
How It Started
Third-party cookies have long been the backbone of digital advertising, enabling various tactics like user tracking, audience segmentation, retargeting, and cross-device tracking. They have been crucial in helping marketers deliver personalised experiences and measure campaign effectiveness.
But as the industry moved towards more privacy centric solutions, in January 2020 Google followed suit and initially announced their plans to end support for third-party cookies in Chrome by 2022. However, this deadline was repeatedly extended, first to late 2023, and then to Q4 2024.
As part of its Privacy Sandbox initiative, Google set yet another extension to its timeline to phase out third-party cookies in Chrome by ‘early 2025’. This announcement in May 2024 came as a surprise, particularly since the phase-out process had already begun for 1% (approx. 30 million randomly selected) of Chrome users as of January 2024.
A Surprise Announcement
On July 22, 2024, Google's VP of Privacy Sandbox, Anthony Chavez, revealed a significant shift in strategy in a blog post. Instead of completely deprecating third-party cookies, Chavez announced ‘we are proposing an updated approach that elevates user choice.’
‘Instead of deprecating third-party cookies, we would 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,’ he continued.
This essentially means users will now have the option to opt-in to third-party cookies, giving them much more control over how their data is used.
This reversal comes after pressure from regulatory bodies, particularly the UK's Competition and Markets Authority and the Information Commissioner's Office. There were concerns that the original plan could unfairly advantage Google's advertising business and impact competition in the digital advertising space.
Industry Implications
While this might seem like good news for marketers, the reality is more complex. If we look at similar opt-in scenarios, like the iOS 14.5 update in 2021, we saw that user opt-in rates can be quite low - potentially around 19%. This could mean that if third-party cookie remain available in Google Chrome, there could be a significant decrease from current levels.
Given these projections, it is crucial for marketers to continue adapting their strategies:
- Focus on first-party data collection and usage (from both on and offline).
- Invest in econometric modelling and advanced analytics.
- Explore more durable, cookieless targeting options.
- Leverage the data from opted-in users for insights and modelling.
At KINESSO, we have long been preparing for this shift through our Emerging Tech Assessment, which helps quantify the impact of third-party cookie deprecation on advertisers. We have found that on average, 72% of advertiser spend is at medium-to-high risk exposure to signal loss resulting from third-party cookie deprecation, with industry predictions suggesting a 10-25% drop in media performance if no action is taken.
While Google's announcement provides somewhat of a reprieve, it does not change the fundamental direction of the industry towards greater privacy protection. Marketers need to continue investing in next-generation measurement, targeting, and optimisation techniques while also developing strategies to leverage the valuable insights from users who do opt-in. They should also consider continuing to test Privacy Sandbox features and contribute feedback whilst Google maintains its commitment to continuing to develop them.
Future proofing against uncertainty
The future is also uncertain. Whilst the onus for providing consent now shifts to the user to control the acceptance of third-party cookies and their use cases in Chrome, we do not yet know how this might surface and what the default settings might be. We also do not know how this will be scrutinised and responded to by the various industry bodies and regulators that Google have been engaging with recently.
What we do know however is that we have seen and experienced these types of changes before. There is no “silver bullet”. A multi-pronged approach is required to achieve durable marketing strategies.
Want to ensure your marketing strategies are future-proof? Contact us for a comprehensive risk analysis and tailored solutions to navigate this evolving landscape.
This article was co-authored by Robert Carson, Head of Platform & Effectiveness Practice, EMEA, and Jack Newman, Data & Technology Partner, EMEA.
Rob and Jack work closely together to create bespoke solutions that address the unique challenges and opportunities faced by clients in today's rapidly evolving digital marketing landscape. If you’d like to speak to either about your MAdTech needs, hit the link here to get in touch.