Say Goodbye to a Cookieless Future: Google Changes Course

For the past four years, Google has kept us on our toes, promising a cookieless future. They even started phasing out cookies in January this year, only to pull a complete 180 and say, “Just kidding—cookies aren’t going anywhere.”

Yep, Google recently announced an “updated approach” to how they’re handling user experience on Chrome. Instead of phasing out third-party cookies as they originally planned, they’re offering users more control over their web tracking preferences. So, what’s changing, and what does it mean for you? Let’s dive in!

What’s Happening? What will happen with cookies?

On July 22, Google revealed a new direction for its Privacy Sandbox initiative, which was the backbone of their initial plan to phase out third-party cookies. But now, Google’s keeping third-party cookies around. Instead of waving goodbye to them, Chrome users will get “opt in/opt out” options to control their web browsing tracking preferences.

Here’s a key statement from Google:

“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.”

Let’s break down some terms:

• Third-party data: This is customer info collected from third-party sources (like cookies) across the web that your business can use, but doesn’t own.
• First-party data: This is the internal data your business collects, owns, and holds.
• Privacy Sandbox: Google’s initiative that focuses on developing privacy-first APIs, tools for advertisers and publishers, cookie updates, and more.

Why Was There A Gradual Move To Disabling Cookies By Google?

Google’s original goal for the change was to remove third-party cookies in order to establish what it called a clean web. They wanted to minimize the user’s worry about how they are monitored online.

“We keep adding features to provide privacy for your data and more control over how it is used — For instance, we are always working to reduce the ability to Monitor your activity across websites”—this was Google’s initial statement when it first announced the process of phasing out cookies.

They intended to delete all third-party cookies by the end of 2024, and the move commenced at the beginning of the year, which was in January; this would affect approximately 1 percent of the Chrome users.

What is Google Doing Instead of Phasing Out 3PC?

Although they have not revealed all the specifics about the new plan with great details, it is quite apparent that Google has not banned third-party cookies for customer tracking for the businesses. With that being said, the options for Chrome browser users will be available soon whereby they can turn off this tracking.

Google is committed to Privacy Sandbox which means that they will keep on working on effective ways of tracking the audiences and targeting them for a privacy-first GA4, and other platforms like Google Ads.

As this progresses, it’s crucial for developers to adopt alternatives that prioritize user privacy. We’ll continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility. “We aim to enhance privacy controls by introducing IP Protection in Chrome’s Incognito mode,” stated Anthony Chavez, Google’s Vice President of Privacy Sandbox.

What Does This Mean for Your Business?

If you’ve shifted your strategy to focus on first-party data, you’re still on the right track. There are plenty of powerful PPC strategies that lean heavily on first-party data, like enhanced conversion bidding or customer match audiences.

Beyond Google, other platforms are also pushing for privacy-focused, first-party data strategies. For example, Facebook’s Advantage+ audiences can optimize your targeting based on the suggestions you provide.

What the PPC Community Thinks About This Change?

Many in the industry are breathing a sigh of relief. The deprecation of third-party cookies was causing a lot of stress for advertisers.

“We anticipate that the performance of Privacy Sandbox APIs will improve as the industry adopts them more widely. However, we understand that this transition demands considerable effort from various stakeholders and will affect publishers, advertisers, and everyone engaged in online advertising.” said Anthony Chavez.

Some advertisers are glad the cookie apocalypse is delayed, but others are frustrated. After spending so much time preparing for a cookieless future, this sudden shift feels like wasted effort. And the lack of clarity around Google’s new path isn’t exactly helping to build confidence.

As one X post put it:

“Given past trends, this might be a major advantage for advertisers, as the majority of users typically don’t alter their settings. However, if Google starts using pop-ups like Apple’s ATT, it could lead to a significant reduction in user data collection,” writes Andrew Hutchinson, Content and Social Media Manager at Social Media Today.

Ari Paparo, CEO at Marketecture, even speculated in an X post:

“My guess is they’re going to slowly move from opt out of third-party cookies, to recommending blocking to users, then eventually to opt in only.”

These reactions highlight how important first-party data will continue to be, especially as fewer potential customers might opt into third-party tracking in the future.

The Bottom Line

This latest move from Google is yet another curveball for advertisers. While the details are still unfolding, it’s clear that businesses need to stay flexible and continue to invest in first-party data strategies. As Google rolls out these updates, staying informed will be key to navigating this new landscape effectively.

So, whether we’re heading towards a cookieless world or not, keeping a mix of first-party and third-party strategies will keep your business prepared for whatever comes next.