After years of delayed deadlines, Google has finally put third-party cookie deprecation to rest.
Last Monday’s announcement begets a slew of industry questions about the implementation and impact of Google’s proposal for the user opt-in mechanism, and only time will tell when they will be answered.
One thing is clear, however: Google is acknowledging its inability to effectively execute its plans. Since Google set its first deprecation deadline in 2020, which was subsequently delayed three times, it sought to develop an alternative to third-party cookies that would satisfy both user privacy and industry needs. But it failed to achieve this goal.
Why? Because Google doesn’t know how to be collaborative, since it’s never had to be.
Now, for perhaps the first time ever, Google finds itself navigating a learning curve: You can’t produce an industry-acceptable solution if you aren’t collaborative from the start. It’s time Google commits to competing with the rest of the industry rather than dictating terms.
The viability of its Privacy Sandbox APIs, whether that be by consumer choice or through the end of the cookie, hinges on its ability to compete with other industry solutions, something the team didn’t appear to be open to throughout the feedback phase of the CMA investigation.
And consumer choice may not eliminate Google’s antitrust woes. It’s crucial to remember that Google’s proposal to keep cookies around is just that: a proposal. If regulatory bodies reject it, Google will be compelled to revisit its strategy and explore other approaches.
Impact on publishers
With no clear direction on where to go after the death of the cookie, this new proposal at least gives some runway to continue preparing for the inevitable change to consumer privacy regulations that will affect the use of third-party data.
More lead time is beneficial, but frequent changes remain difficult to navigate. This is just one more adjustment to Google’s plans that significantly alters business conditions for all publishers.
Earlier this year, publishers were faced with navigating latency issues and their impact on viewability, which consequently decreased impressions, revenue and consumer experience.
Now, with the cookie deprecation timeline thrown out the window, paired with the fact that implementation will be largely defined by individual users rather than an industry standard, publishers are left wondering when changes will start and in what capacity. Uncertainty makes it much harder to effectively plan and set processes.
Publishers are uneasy about how the opt-in experience will look and be presented to users, many of whom already are skeptical about sharing personal data and privacy. After users have been given the choice, another concern lies in how much these regulations impact publishers’ share of the audience who opt in to cookie tracking.
Additionally, publishers worry about the future of identifier usage with the potential blockage of IP addresses. The adoption of IP Protection as a default Chrome setting could significantly impact user addressability, limiting publishers’ ability to target and track users and ultimately affecting their monetized content.
The industry must support and advocate for privacy-focused solutions that enable publishers to succeed without cookies. Privacy Sandbox is still a viable alternative to Google Chrome’s lack of cookies. But publishers will need to test, understand and figure out how it fits into their strategy.
Response from advertisers
In light of the announcement, it is possible that some might take this as a green light to go about business as usual with cookies intact. After all, if Google isn’t going to phase out third-party cookies, why should advertisers look for new solutions? Is there a need to continue Privacy Sandbox testing at all?
The answer is a clear “yes.” Regulations are on the way, consumer privacy is a top concern and, ultimately, most consumers will choose to opt out of cookies when given the choice in Chrome.
Advertisers would be irresponsible not to prioritize user privacy. The best approach is to collaborate with the supply side to make substantial improvements via the Privacy Sandbox and other technologies.
So, let’s maintain our forward momentum. Continue testing and sharing results, even in the face of obstacles.
The more frequently the buy and sell sides collaborate on questions and requests for Google, the more likely we are to enhance current solutions. We’re still in the early stages of analysis and application in our pursuit of privacy-focused advertising. However, with each passing day, we make progress.
If we collectively stand steadfast in the commitment to championing privacy-centric solutions, publishers and advertisers will both flourish in a future devoid of cookies.
“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.
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