Google's Decision to Keep Third-Party Cookies: What It Means for Advertisers

After 4 years of delays and ongoing issues with Privacy Sandbox, Google has finally announced that Chrome will not be deprecating third-party cookies.

This announcement might initially seem like good news for the advertising ecosystem, but it brings a mix of implications that advertisers need to consider.

Technical Challenges and Privacy Concerns

During our own Privacy Sandbox API testing we identified several issues. For instance, Google’s in-browser bidding fundamentally changed the way ad calls for bids and creatives were transmitted. We saw conversion collisions in attribution reporting that mistakenly increased the count of sales. Such technical challenges underscore that Privacy Sandbox is far from ready for deployment. This latest decision by Google gives them time to address these issues and the concerns of the wider advertising community.

User Consent and Tracking Transparency

In his statement on the Google blog, Anthony Chavez the VP of Privacy Sandbox, also announced a new solution for users to manage third-party cookies, hinting at a one-time prompt. It’s likely this prompt could be an extension of Chrome’s existing Tracking Protection or follow a format similar to Apple’s App Tracking Transparency (ATT) launched back in Spring 2021. It’s worth noting that when Apple introduced ATT, 62% of users opted out of IDFA tracking.

The introduction of a similar prompt in Chrome is likely to lead to a substantial number of users opting out of third-party cookie tracking. Even though third-party cookies are not completely disappearing, this new privacy measure could reduce the volume of trackable data – affecting ad targeting precision, measurement accuracy, and publisher revenue.

Industry Reactions and Preparations

The advertising industry has expressed multiple concerns about Privacy Sandbox, from technical issues to broader privacy implications. This latest announcement has received mixed reactions. Some see it as a necessary delay to get the Privacy Sandbox right, while others view it as a step backward in enhancing user privacy.

Impact on Ad Operations

Here at Crimtan, we have spent years developing our privacy-first cookieless solution, ActiveID. This solution is designed to operate effectively without relying on third-party cookies, ensuring that our ad operations and client campaigns remain unaffected by Google’s latest pivot. ActiveID represents our commitment to privacy-centric advertising, positioning us ahead of the curve as the industry grapples with these evolving challenges.

Looking Ahead

Advertisers must now navigate this complex landscape, balancing the need for effective ad targeting with growing privacy concerns. As Google continues to develop and refine Privacy Sandbox, staying informed and adaptable will be key. And let’s not forget that other browsers such as Safari and Firefox still have their own tracking protections that block third-party cookies by default.

While this delay offers some breathing room, it is also a reminder of the ongoing transformation in digital advertising. Preparing for a cookieless future remains crucial for maintaining robust advertising strategies and ensuring long-term success.

If you would like to talk to one of our experts directly, or find out how to adapt to the coming changes, contact us today.