Over the last several months, marketers and tech professionals alike have been gearing up for the long-awaited move that would take third-party cookies off the table. Instead, this summer brought a shocker: the Google Privacy Sandbox, intended to be the privacy-centric step forward for marketing and data collection, is off the table (at least for now).
On July 22, Google announced its reversal on its plans to swap out third-party cookies for Privacy Sandbox-related tools. “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. We’re discussing this new path with regulators, and will engage with the industry as we roll this out,” Google said in a blog post. What that will look like in practice, as well as the future of the Privacy Sandbox and its tools, will be revealed down the line.
Why Cookies Are Staying (Somewhat)
Although Google didn’t give a lot of detail on their sudden about-face, sources speaking to
Ad Age suggested a main culprit was a lack of commitment from Google regarding the Privacy Sandbox. That lack of focus led to lackluster performance, which in turn brought its much-anticipated rollout to a halt.
That half-hearted commitment showed up at several points along the journey. For instance, Google’s own demand-side platform, Display & Video 360 (DV360), didn’t enable testing in the Privacy Sandbox; alternate cookie-less testing options actually were more accessible for many. Ad Age also reports that Google’s ads side was kept siloed from the Privacy Sandbox, which made it significantly tougher to develop effective solutions that could be used at scale.
For now, the solution is putting the power back with individuals. Google’s plan, at least in the short term, is to allow Chrome users to customize their cookie preferences within the browser. Many privacy-conscious users will choose to decline cookies wherever possible, but having to maintain the support for both cookie-reliant and non-cookie approaches could present complications for tech and ad professionals alike.
One unexpected side effect could be a reduction of paywalled content, at least for now. “Without third-party cookies, website owners were struggling to figure out how to monetise their audiences and this is one of the reasons there’s been such an increase in gated or paywalled content in recent years,” Steve Silvers, executive vice president of global creative, media and ecosystem at Kantar, said to CNBC. From his perspective, the continued option to use cookies might make some publishers decide to reduce paywalled content, since it can be monetized through cookie-driven advertising after all.
Privacy Is Still a Top Priority
With or without third-party cookies, privacy remains a top concern, both from a legal perspective and for individual users. Google, along with other tech companies, must comply with international privacy regulations, including relatively stringent ones like those in the EU. Meanwhile, the preference for privacy continues to grow among users. 68% of global consumers say they’re concerned about their data privacy online, and even higher percentages report deciding not to make a purchase or even deleting an app due to privacy concerns.
While cookies will remain supported in the near term, advertisers should still expect a major drop-off in cookie usage and plan accordingly. More and more users are growing protective of their online data, which means there’s a growing user base that will opt out when given the chance.
“There are scenarios where we might see 80%, or even 90% drop-off in cookie volume, in which case is pretty much the same as them being removed altogether, and we’re going to need robust alternatives,” MiQ global chief strategy officer John Goulding told Ad Age.
The big question is: what do these factors mean for your current marketing strategy? For the time being, the safest route is probably the slight adjustments you’ve already been preparing for. It’s still a good idea to be looking for effective alternatives to third-party cookies, which will never be quite like they once were. Having a privacy-forward advertising strategy can also elevate your brand’s reputation, which can in turn enhance customer loyalty.
A more privacy-focused approach to data collection can improve both your own targeting of ad spending and your ability to show customers that you respect them. When we balance creative, personalized marketing with privacy-conscious practices, we all win!
