Google abandons third-party cookie depreciation plans

Google has announced it is abandoning their third-party cookie depreciation plans on Chrome.

After years of back and forth between industry stakeholders and regulators to make a solution work, it seems Google may have admitted defeat.

This news isn’t entirely surprising. Recent reports suggested that ad tech vendors were pulling back from Google’s Privacy Sandbox amid uncertainty following poor performance reports from heavyweight ad tech platforms Criteo and Index Exchange.

What will happen next?

Google has suggested that they plan to keep third-party cookies running when not disabled.

But in a bid to assuage both privacy and advertising, they’re proposing a new hybrid solution based on user preferences:

“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.” Anthony Chavez, VP, Privacy Sandbox

In theory, this would be a one-time prompt that would enable users to set preferences at a browser level that will apply across all Chrome browsing experiences.

Some industry insiders are suggesting that this will be a choice between opting in to tracking cookies, Google’s Topics API, and its semi-private browsing.

However, take this with a pinch of salt.

As we’ve learnt over the past four years, there’ll likely be many twists and turns before anything is officially finalized and there’s no specific timeline mentioned.

A little background…

Third-party cookies have long been the linchpin of targeted advertising. Google’s ambitious plan to replace these cookies with the Privacy Sandbox aimed to revolutionize online privacy while maintaining the effectiveness of ads.

Arguably the reason why Google has done a U-turn on third-party cookies is because of the deeply complex conflicts between preserving privacy and effective advertising (The age-old debate of Privacy vs. Profit and the personalization paradox).

The timing of this announcement is a little off…

In the very same week, Apple warned iPhone users that using any other browser (i.e. Chrome) is risking their privacy.

In the same month, Google was forced to confirm they secretly share your device data (with themselves), raising questions over monopolization.

And just last year, a $5 billion privacy lawsuit over tracking people using ‘incognito mode’ was filed and won against the search giant.

But would there ever be a good time to pull the plug on a project that’s been limping on for four years?

Third-party cookies have been a cornerstone of digital advertising, allowing advertisers to track users across different websites and deliver personalized ads.

Despite their effectiveness, these cookies have raised significant privacy concerns, leading to regulatory pressures and a push for more privacy-conscious solutions.

Other browsers and platforms have moved to act, with the likes of Apple introducing Intelligent Tracking Prevention as just one example of several privacy-focused features.

In fairness, Google holds a much larger share of browser traffic, thus needs to tread carefully. Google proposed the Privacy Sandbox to enhance user privacy while enabling targeted advertising.

What is Google’s Privacy Sandbox initiative?

The Privacy Sandbox was designed to replace third-party cookies with a set of tools and APIs that would limit user tracking while still allowing advertisers to deliver relevant ads. Key components included the Topics API, which anonymously grouped users with similar interests, and other privacy-preserving technologies aimed at reducing the reliance on individual user data.

Technical and implementation issues

Despite its promise, the Privacy Sandbox faced numerous technical hurdles. Implementing the proposed technologies proved to be more complex than anticipated – hence the many setbacks and delays to a full rollout. Balancing user privacy with the needs of advertisers required sophisticated solutions that were difficult to develop and deploy at scale.

Industry and stakeholder pushback

The Privacy Sandbox also faced significant pushback from various stakeholders. As mentioned, Criteo and Index Exchange released less than favorable performance reports after initial tests.

Advertisers and publishers were concerned about the impact on ad effectiveness and revenue. On the flip side, privacy advocates argued that the new tools did not go far enough in protecting user data. This lack of consensus made it challenging for Google to gain widespread support for the initiative.

Good news for marketers?

The reality is marketers were not ready for the transition to the cookieless future and arguably, many never believed it would happen anyway, potentially the reason for the lack of urgency. According to Forrester’s Marketing Survey 2024, 53% of B2C marketing decision-makers in APAC said that they did not believe that Google will deprecate the third-party cookie.

However, if nothing else, the volatility of this situation that has been playing out for the past four years highlights that brands need to reduce their reliance on cookies and build out reliable first-party data.

Privacy regulations are not going anywhere, with new legislation moving forward every day across the world.

Alongside privacy laws, consumers are pushing for more control over the data they share, with a preference to buy from brands that prioritize privacy. Our recent survey found that 97% of consumers prefer to do business with companies that have a strong track record of protecting data privacy.

Plus, data depreciation is still happening with or without third-party cookies.

So whilst this news might come as a relief, it shouldn’t mean marketers sit back and relax when it comes to privacy.

Marketers should focus on collecting granular consent and preferences, to deliver more contextualized experiences that deliver stronger results.

First-party data strategies should continue to evolve alongside privacy-enhancing technologies and advanced identification techniques like Cassie’s Identity Service. By creating a better customer experience based on trust and transparency, organizations are more likely to see longer term results.

Bad news for consumers?

Privacy professionals have been pushing for stronger provisions for years so will likely be dismayed at Googles reversal. The delay in phasing out these cookies means prolonged exposure to privacy risks and less immediate progress toward more secure and privacy-focused web technologies.

ICO deputy commissioner Stephen Bonner said:

“We are disappointed that Google has changed its plans and no longer intends to deprecate third party cookies from the Chrome Browser.

“From the start of Google’s Sandbox project in 2019, it has been our view that blocking third party cookies would be a positive step for consumers. The new plan set out by Google is a significant change and we will reflect on this new course of action when more detail is available.

“Our ambition to support the creation of a more privacy friendly internet continues. Despite Google’s decision, we continue to encourage the digital advertising industry to move to more private alternatives to third party cookies – and not to resort to more opaque forms of tracking.

“We will monitor how the industry responds and consider regulatory action where systemic non-compliance is identified for all companies including Google.”

Final thoughts…

Google’s decision to delay the depreciation of third-party cookies in Chrome prolongs the privacy risks consumers face and hampers immediate progress toward secure web technologies.

Despite this setback, it emphasizes the need for marketers to adopt robust first-party data strategies and privacy-preserving technologies. While this move might offer temporary relief to advertisers, it underscores the ongoing debate between privacy and profit, urging both consumers and industry players to remain vigilant and proactive in the quest for a more privacy-conscious internet.