Is There a Foreseeable End to the Cookies Saga? Let’s Find Out
Here comes a really fast summary of a fascinating story that Google has been trying to tell its users for the last five years. Remember when the company announced its plan to?phase out third-party cookies?for the first time in 2020? They have even started the phase-out testing for their web browser—Google Chrome—and were all serious about the incentive.
Nonetheless, as time passed, Google kept thousands, if not millions, of businesses hanging in the balance of not knowing what would happen with targeted advertising. Well, three years after - in 2023 - Google Privacy Sandbox rose to ensure everyone that phasing out cookies won’t impact businesses but will only make the Internet a safer place for everyone’s personal data. As it turns out, the plan didn’t work.
January 2024 was meant to become the judgment day for the third-party cookies on Chrome, but the capital punishment was postponed several times. As we’re now approaching 2025, Google announced that they will keep third-party cookies while running tests for ad performance with the help of Privacy Sandbox. So, where are we headed with the third-party cookies not going anywhere and the Privacy Sandbox still being a thing? Let’s find out.
The Change Was Imminent: At Least They Said So at Google
It takes a stepwise analysis of the third-party cookies saga to understand where we are with it. In a major shift towards enhancing online privacy, Google has unveiled its plan to phase out third-party cookies from its Chrome browser starting in early 2024. This move marks a pivotal moment in digital advertising, reflecting a growing commitment to user privacy and data security. As part of this transition, Google is introducing the "Privacy Sandbox," a suite of new technologies designed to replace cookies with more privacy-centric alternatives.
The Sandbox Technological Revolution Looked Fresh
Google's phased removal of third-party cookies was meant to begin in early 2024, gradually eliminating their use in Chrome. Of course, businesses and advertisers were really concerned, as the final impact Privacy Sandbox would have had on them was still foggy. Yet, as per Think with Google, the innovative tech stack behind the solution was meant to balance privacy with the needs of advertisers by introducing new technologies:
“As Google implements these changes, the digital advertising landscape will significantly transform. Advertisers will need to adapt to new methods for targeting and measurement, while users can expect a more secure online experience with less intrusive tracking practices”. Well, at least it was what they said at Google.?
Until It Didn’t. The Postponed for 2025 Cookies Deprecation Ain’t Happening
It seems like the industry’s reaction to the long-advertised change was not that positive. Therefore, all of a sudden, Google came up with a statement saying they won’t be deprecating third-party cookies in Chrome. Here’s exactly what Anthone Chavez, Privacy Sandbox Vice President, had to say, as per Deutsche Welle:
"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".?
The company’s understanding of what an untested in the real-life conditions Privacy Sandbox could have done to millions of businesses worldwide has prevailed.
Challenges Overweighting Benefits Plus Negative Industry Response?
The advertisers’ life was full of both challenges and opportunities during those last couple of years. Of course, Google were trying to represent third-party cookies deprecation as a window of opportunity, saying that it would bring:?
Enhanced Privacy
This transition was designed to present a chance for advertisers to align with the growing demand for privacy. By adopting new technologies that prioritize user consent and data protection, brands could build stronger, trust-based relationships with their audiences.
IP Address Protection
This is basically a reduplication of the enhanced privacy point. A significant aspect of the Privacy Sandbox is the protection of IP addresses, which are often used to track user behavior. Google said they were implementing measures to obscure IP addresses, further enhancing user privacy by preventing detailed tracking linked to specific locations or identities.
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Innovation
The tech stack behind Privacy Sandbox, which we’ve already discussed, was also represented as a huge benefit for the businesses and users to tap into. Google's stance on the matter was that the introduction of FLoC and Topics API could offer new ways to engage with users while adhering to privacy standards.
However, it turns out that the list of “negatives” associated with third-party cookie deprecation was way longer than the one of the supposed benefits:
Mixed Reactions
The digital advertising industry has responded with a mix of apprehension and optimism. Some industry leaders are concerned about the potential disruption to established practices, while others see the move as a positive step towards better privacy standards.
Antitrust Lawsuit
Recently, Google faced a major antitrust lawsuit filed by the Department of Justice (DOJ), which challenged the company’s market practices, including its dominance in digital advertising. The lawsuit underscores growing regulatory scrutiny of Google’s business practices and could impact its advertising strategies.
Regulatory Impact
The antitrust issues and regulatory pressures may influence how Google implements its Privacy Sandbox and other changes. Compliance with legal requirements and maintaining competitive practices will be crucial as the company navigates these challenges.
Targeting and Measurement
Third-party cookies have long been a cornerstone of precise ad targeting and performance measurement. Without them, advertisers will need to explore alternative methods to understand and reach their audiences effectively.
Data Integration
The shift may lead to difficulties in integrating data from various sources. Advertisers will need to adapt to new data frameworks and ensure their strategies remain cohesive.
They said that the advertisers who can navigate these challenges and leverage new opportunities will be better positioned to thrive in a cookie-less future. Well, there is no cookie-less future as of now.
What’s Next for the Digital Advertising Ecosystem?
The phasing out of third-party cookies is far from a done deal, and celebrating prematurely would be unwise. With Google still refining its “user choice” plan, the full impact on the advertising landscape remains uncertain. For now, the best strategy is to remain adaptable, explore privacy-focused advertising alternatives, and avoid making hasty decisions. The coming months will be critical as we observe industry reactions, assess the effectiveness of new metrics, and await further developments from Google. As this transition unfolds, staying informed and flexible will be key to navigating the evolving digital advertising environment.
Partnering up with Bidscube would be a great idea, as we’re ready for any cookie-related changes in the domain. Our white-label DSP continue to work with cookies and it’s already ready for their outage, as it has the feature for working directly with the 1-party audience.?
Get in touch if you want your business’s marketing and advertising activities to remain intact regardless of the changes Google can create.