In 2020, Google made waves by announcing its plan to end support for third-party cookies in its Chrome browser, citing privacy concerns. To facilitate this transition, the tech giant introduced the Privacy Sandbox initiative aimed at enhancing online privacy while supporting digital businesses. However, after years of inching towards a cookie-less world, Google recently reversed its decision following discussions with advertisers and publishers.
Cookies are tiny pieces of data that websites send to a visitor’s browser. These snippets stay active as the person browses other sites, tracking online activities. They gather information about our search habits and shopping preferences. This tracking has become crucial for advertisers to refine their online ad targeting.
Retaining cookies, Google is set to introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, something similar to what Apple does. The move is said to be a result of concerns raised by advertisers, who believe that loss of cookies will limit their ability to collect information for personalising ads, making them dependent on Google’s user databases. Furthermore, the UK’s Competition and Markets Authority had also scrutinised Google’s plan due to worries that it would hinder competition in the digital advertising market.
While Firefox and Safari have already discarded third-party cookies, Google has had a rather confusing journey, filled with delays. Following Firefox and Safari, the tech giant declared its ambitions of phasing out cookies in 2020. But after multiple delays, Google has now taken a U-turn. Cookies stay alive.
Prior to this recent update, advertisers as well as brands were resorting to novel ways to track consumer data. From contextual advertising to first-party data to Publisher Provided Signals, new and old ways were being experimented with, to transition into a cookie-less world. Many of the big brands had even started direct-to-consumer services in a bid to accumulate consumer data directly.
Industry experts note that some marketers now see the fastest-growing parts of the internet beyond Chrome, with Indian consumers increasingly using OTT, CTV, and music streaming platforms that don’t rely on cookies. Notably, this change has resulted in enhanced identity solutions such as Unified ID 2.0, which more effectively address the requirements of contemporary marketers.
But for companies that have been building their business models around a cookie-less future, this decision, however, feels like a curveball. They have dedicated time, resources, and creativity in creating new, privacy-friendly solutions, and Google’s move might feel like a setback to them.
The world is aware of the privacy concerns associated with third-party cookies, and eventually, we have to come up with something better. But this move to keep alive cookies comes as a respite to many advertisers, giving them more time to get in tune with the privacy-centric web ecosystem. On top of that, many industry professionals have also voiced their opinion against Privacy Sandbox, stating that it not only negatively impacts ad auctions, but also doesn’t optimally cover video ads. Some have even raised alarms around its privacy.
While third-party cookies are not being discarded, the work on Privacy Sandbox and other alternatives won’t stop. Addressing the same, Google Privacy Sandbox’s Vice President Anthony Chavez mentioned that Google will continue making Privacy Sandbox APIs available and add anti-IP tracking protection for those using Incognito Mode to add an additional layer of privacy. He also added that Privacy Sandbox will be allowed to compete on its merits and if advertisers prefer its approach and consumers value the alleged privacy benefits, then it will be universally adopted.
The advertising industry stands at a crossroads, balancing between privacy concerns and effective ad targeting. The decision to keep cookies alive, not only provides advertisers with a much-needed reprieve but also underscores the ongoing complexities of digital privacy. As Google rolls out user-controlled tracking preferences, the onus now lies on the industry to innovate and adapt, ensuring that privacy and personalisation can coexist harmoniously in the evolving digital landscape.
