For some, the news came as an unexpected shock that potentially undoes years of preparation. For others, it was the news they’d been waiting for ever since the deadline was first pushed back. Whichever side of the fence you fell on, Google’s announcement this week that they would no longer be completely deprecating third-party cookies marked the next phase in the ever-changing privacy landscape for advertisers. After the initial shock wore off, the next question on everyone’s mind was either; “what does this mean?” or “what happens next?”.
A Quick Summary
Less than a year after the introduction of General Data Protection Regulation (GDPR), back in 2019 Google announced the Federated Learning of Cohorts (FLoC), introducing the principle of grouping everyone into cohorts to protect individual privacy. This would allow, in theory, advertisers to target larger groups of users who share common interests, traits or browser behaviour, with users being less likely to be individually identifiable.
FloC existed until 2022, when it was replaced by the Topics API underneath the umbrella principle of the Privacy Sandbox. Initially on a limited test, in September 2023 Google announced that it had rolled out the main API features to the majority of Chrome users, allowing them greater control over their privacy settings. However, they were still reiterating their intention to phase out third-party cookies within the near future. This was followed by the introduction of Consent Mode v2, for which advertisers had an adoption deadline of 1st March 2024.
After a couple more pushbacks, the news came this week that third-party cookies would no longer be deprecated, and would instead be rolled into a wider update to allow users even more control over their data.
What Has Google Said?
As part of their announcement, Google has clarified that due to the results of extensive testing:
“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”
There has been a mixed reaction so far, with some advertisers lamenting all the work they’d put into getting ready for the switch over, and some welcoming the news that the immediate panic is over. Either way, Google’s announcement gave an indication of why they had chosen to make this change, saying:
“We developed the Privacy Sandbox with the goal of finding innovative solutions that meaningfully improve online privacy while preserving an ad-supported internet”
Whilst user privacy is at the forefront of many developments in paid media in recent months, Google would not want to risk alienating advertisers by pushing through an update that, by their own testing results, could lead to 52% drop in attributed programmatic revenue.
Is First-Party Data No Longer Needed?
Whilst third-party cookies are no longer due to be phased out from next year, if marketers want to stay ahead of the curve, first-party data is still going to be crucial. For marketers to understand their target audience, spot opportunities to optimise their campaigns, and boost revenue, they need access to first-party data. Moreover, it is more adaptable than third-party data and helps marketers build superior databases for their specific needs.
As advertising platforms include more AI and automation tools as part of their service proposition, first-party data will play a pivotal role. Brands can elevate their marketing strategy by combining AI and automation with first-party data.
Summary
In short, the news means that the immediate rush to find an alternative to third-party cookies is over. However, it’s likely not that simple. The calls for tighter controls on users’ data & ability to choose are not likely to disappear, so it’s up to the big tech giants, such as Google, to intricately balance the needs of the users with the expectations from advertisers to be able to accurately attribute media spend & results. So, whilst the news this week is undoubtedly important, it’s almost certainly not the final picture.
Article author
Chiara Riva
Business Development Assistant
