Google abandons third-party cookie deprecation plans

Introduction

Google is scrapping its turbulent, years-long effort to eliminate third-party cookies on Chrome. In an announcement made on July 23,2024, the search giant indicates that it plans to keep third-party cookies up and running for those who don’t disable them. However, Google plans to roll out a new solution: a one-time prompt that enables users to set preferences that will apply across Google browsing experiences.

?Background

What are Third-Party Cookies? Third-party cookies are small pieces of data stored on a user’s device by a website other than the one they are currently visiting. These cookies enable advertisers to track users across multiple sites, creating detailed profiles for targeted advertising. For example, if a user visits a car review site, a third-party cookie can help display relevant car ads on other websites they visit.?

Google's Phase-Out Plan: ?In January 2020, Chrome promised to phase out the technology “within two years”?following decisions by Safari and Foxfire that had eliminated third-party cookies as early as 2017. Google, which commands more than 90% of the search market, however, has dragged its feet as it sought to balance user privacy with advertisers’ demands. ?Google had re-set the phase out date for third-party or targeting cookies to the 3Q 2024 and later revised that until sometime in 2025.??

Google’s New Plan: Google had sought to replace Third-Party cookies with its Privacy Sandbox with alternative tools for advertisers, such as the Topics API, which categorizes user interests based on recent browsing activity without identifying individual users. Other ad-tech companies are developing alternative solutions like Unified ID and contextual advertising tools. But these tools are still in the development stage.?

In its announcement, Google indicates that it plans to keep third-party cookies up and running for those who don’t disable them. However, to enhance user privacy while preserving advertising effectiveness, Google will give consumers a one-time prompt that enables users to set preferences that will apply across Google browsing experiences.

Implications for Dealership Marketing

Google’s announcement in practical terms means that the consumer, not Google, will handle the phase-out of third-party tracking cookies.? When given a choice more than 40% of Chrome users have manually disabled cookies themselves.? The net result is that Google may have given digital marketers a false sense of security; however, in reality, the old retargeting model will not be a viable option going forward. ?

Challenges

1.????? Reduction in Ad Reach With consumers opting out of targeting cookies the math is simple – ad reach could decline from 30% to 10-15% of consumers with a cookie which means less effective targeting and increased advertising costs.

2.????? Increased Reliance on First-Party Data Dealerships will need to enhance their first-party data collection efforts. This data, collected directly from customers through interactions on the dealership’s website or CRM systems, will become invaluable for creating personalized marketing campaigns.

3.????? Adaptation to New Technologies Dealerships will need to adapt to new tracking and targeting technologies such as geofencing and addressable geofencing. Understanding and integrating these new tools will be crucial for maintaining effective digital marketing strategies.

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Opportunities

1.????? Enhanced Customer Trust By adopting privacy-focused advertising strategies, dealerships can build greater trust with their customers. Transparent data practices and respect for user privacy can enhance the dealership’s brand reputation.

2.????? Innovative Marketing Strategies The shift away from third-party cookies provides an opportunity to explore innovative marketing strategies. For instance, contextual advertising, which targets ads based on the content of the web page rather than user behavior, can be an effective alternative.

3.????? Leveraging AI and Machine Learning Advanced AI and machine learning algorithms can help dealerships analyze first-party data more effectively, providing deeper insights into customer preferences and behaviors. This can lead to more accurate and personalized marketing efforts.

Strategic Recommendations

1.????? Invest in First-Party Data Infrastructure Dealerships should invest in robust data management platforms (DMPs) and customer relationship management (CRM) systems to collect, store, and analyze first-party data effectively.

2.????? Educate and Train Marketing Teams Marketing teams should be trained on the new tools and techniques that will replace third-party cookies. Understanding the functionalities of the Privacy Sandbox, contextual advertising, geofencing, and other emerging technologies will be crucial.

3.????? Focus on Content Marketing High-quality content that engages and informs potential customers can drive organic traffic and reduce reliance on paid advertising. Content marketing can also support SEO efforts, making the dealership’s website more visible in search engine results.

4.????? Collaborate with Tech Partners Partnering with ad-tech companies like N2 Plus and digital marketing agencies can help dealerships stay ahead of the curve. These partners can provide the expertise and tools needed to navigate the transition smoothly.

Conclusion

The reduction in use of third-party cookies by Google’s new policy marks a significant change in the digital advertising landscape. While it presents challenges, it also offers opportunities for dealerships to innovate and build stronger relationships with their customers. By investing in first-party data, embracing new technologies, and focusing on privacy-centric marketing strategies, dealerships can continue to thrive in this evolving environment.

For more information on our latest technical tools including capturing first party data and the use of geofencing solutions for prospecting and lead generation please give us a call at 770-222-4302 or visit our website at https://n2plusdealer.com/products-and-programs/