In a temporary reprieve to advertisers, Google has dropped its plan to discontinue third-party cookies in Chrome despite heightened privacy concerns raised by governments, consumer rights groups, and industry watchdogs. The decision, revealed in an updated blog post four years after the initial announcement, introduces a “new experience in Chrome” to help users make informed choices about their web browsing preferences, adjustable at any time.
Google, whose advertising revenue soared to $237.8 billion in 2023, has pitched this new approach as a “balanced solution” for its extensive user base. Chrome, that commands around 65% of the global internet browser market, remains a critical platform for digital advertisers who had been lobbying for the retention of third-party cookies.
The continuation of third-party cookies addresses immediate concerns about disruptions to online advertising and commerce and for most consumers, it means their internet experience remains largely unchanged. Says Abhishek Tiwari, global business head at mobile advertising company NetSetGo Media, “The decision to retain third-party cookies means that businesses that are heavy users of targeted advertising continue undeterred — they can carry on with their ongoing marketing strategies without immediate and drastic changes.” For customers who prioritise privacy, this is “a clear victory”, says Tiwari, as they can disable site-based tracking entirely. Those who don’t actively opt out will continue to encounter third-party cookies and, consequently, enjoy personalised experiences.
This will also work in Google’s favour as competition intensifies, says Shradha Agarwal, co-founder and CEO of communications agency Grapes, as it can build a more loyal audience base and drive better experiences for them.
So is it all hunky-dory?
Not really, if one goes by experts. For one, Ambika Sharma, founder and chief strategist, Pulp Strategy, says this move has both a good and a bad side.It puts more control in the hands of the user. They can make informed choices about third-party cookies, like the opt-in model used by Apple for app tracking. This can enhance transparency and give users greater autonomy over their data. On the flip side, the complexity of managing these settings can result in confusion and mistrust in the effectiveness of these controls.
Others are more hardline in their stance. This decision could create new challenges, especially for businesses that have already invested in cookieless tracking solutions. Amit Relan, co-founder and CEO of mFilterIt, points out that many of the company’s clients had already explored new possibilities keeping in mind a cookie-less future. “Some of our major clients in the FMCG and BFSI domain were moving towards relevancy and contextual targeting for ad placements to reach the relevant audience with a three-fold rise in efficiency,” he says.
Experts also say that the move will lead to further fragmentation of the advertising industry. Rahil Khan, CMO & director, Sellergize says Google’s decision to abandon the deprecation of third-party cookies in Chrome poses significant ethical concerns for affiliate publishers. While Chrome may proceed with third-party cookies, browsers like Firefox and Safari have already embraced a more privacy-centric approach by banning them outright. “This fragmentation creates challenges for advertisers reliant on cookie-based tracking methods,” he adds.
But that is the least of the advertisers’ worries. The added complexity of user consent on Chrome complicates matters, requiring businesses to adapt their strategies based on varying levels of user consent. This shift will also necessitate more robust privacy practices and clearer communication with users about data usage, potentially increasing operational costs.
Yasin Hamidani, director, Media Care Brand Solutions, says balancing user control and privacy with advertisers’ needs for data may prove more complex than they appear to be at first glance. “Users may face confusion or fatigue from managing cookie preferences across various sites, leading to inconsistent privacy protection,” he says. He adds that this approach might not fully address concerns about data security and misuse, leaving room for skepticism from privacy advocates.
Of course, Google has said it remains committed to developing the Privacy Sandbox, an alternative ad tech solution designed to enhance user privacy while maintaining digital advertising functionality. Early tests have shown promise, but experts have highlighted challenges in remarketing effectiveness.
Net net, instead of relying on cookies that have long been criticised for their intrusiveness and inefficiency, advertisers must work to leverage first-party data while also collaborate for better partner data, say experts.