Google’s Cookie Deprecation U-Turn: What It Means for Privacy and Advertising

Chris Watts, Media Technology Specialist

This past week’s news that Google will be keeping third-party cookies around might have broken the internet, but don’t worry— that’s about all it did to the web. After years of preparation and significant investment in cookie alternatives, the decision to keep third-party cookies alive has raised many questions about the future and renewed some ongoing concerns. 

While the immediate impact of this decision may seem minimal, let’s take a closer look at what this means for the future of privacy, advertising, and the digital marketing industry.

The Cookie Conundrum and Google’s Privacy Sandbox: A Closer Look at Third-Party Cookies

Lest we forget the original plan to deprecate cookies was driven by a desire to address privacy concerns. However, that sentiment was quickly lost as the industry came up with potential workarounds. Enter unique alternative IDs, identity graphs, and Google’s own Privacy Sandbox. Exactly as it sounds, the Sandbox is a fenced-in area with kids, or the marketing industry, playing with Google coined sandbox tools. These tools or “proposals” are aimed to replace the separate functions of the cookie and offer privacy-focused solutions for personalized advertising while minimizing data collection.

While the Sandbox and other alternatives do aim to give consumers more control over their privacy, the reality is that we are simply shifting our trust from one entity to another. Instead of rethinking data collection, we are merely transferring it to a corporation, which may end up holding as much, if not more, information as entities do now. Furthermore, by using tools that link online identifiers with personal information, we are, in fact, reducing privacy rather than enhancing it.

Shifting away from third-party cookies or adopting alternative technologies may appear to be a step forward, but it doesn’t address the fundamental issue. The real challenge lies in improving consumer choice alongside the handling of data. We need to find a way to give consumers genuine preference control over their privacy while still meeting the demands of effective and efficient marketing.

Navigating Industry Whiplash & The Road Ahead

I feel a mix of empathy and pragmatism about this situation. On one hand, companies have invested significant time, money, and resources into new processes that may now be adjusted or ultimately abandoned. However, it seems that few advertisers had fully embraced these new methods, partly due to skepticism about the deprecation actually happening. This period has been a valuable testing ground, forcing the industry to look within itself and explore alternative solutions, while bolstering the focus on consumer privacy. With enhanced understanding of our own internal processes, we as brands have a real opportunity to improve transparency and build trust with our consumers.

Food for thought – With consumer privacy in mind, we need to remind ourselves that brand awareness is not always positive. As a consumer there have been plenty of times that the same ads have popped up everywhere I go, and it’s actually turned me away from a brand or product. When a consumer is doing their everyday browsing, we need to think of both new and current places that they’re being presented with the choice. This is apparent in consent banners, which allow consumers to opt in/reject all third-party cookies. But even so, the choice is incomprehensible to the average consumer.

I ask the question – How do we include the consent banner as part of the consumer journey? Not only with the intention of more consumers hopefully “accepting all”, but for that split second when someone appreciates being clearly presented with the choice and told what accepting cookies will mean for their future browsing experience and relationship with the brand. This is a very powerful first step towards brand trust.

Conclusion: The Evolving Landscape of Third-Party Cookies and Privacy

The industry will continue to evolve and adapt, regardless of what Google does next. But like in any fable, the lessons learned along the way were not in vain. We’re back to tackling privacy concerns head on, with consumers. Which seems a lot more straightforward. And when we look at that – it should never have been just about third-party cookies, but any 1:1 identifier. And that discussion still needs to be had.

But for the few early adopters that created truly privacy-first approaches (as opposed to the slew of cookie workarounds we saw) – congrats. You saw the forest through the trees and have something that’s actually future proof. And for agencies and advertisers, remember that no policy or software update can take away research and understanding of your customers, your media investments, and your business results.

By focusing on assessing performance against real business results – be it correlating results over a long period of time, test and learns, or more sophisticated data science models, you will be able to continue to evolve and stay successful amidst the ever-changing industry.