Google has decided to abandon its plan to go cookieless in Chrome. The not-so-sudden switch raises important questions about the future of online tracking and advertising due to the impending changes in internet privacy.
So now, instead of the original plan, Google will introduce a new feature in Chrome that will give users more control over their privacy settings while browsing the web. Users will be able to make privacy choices that will apply to all their web activities and adjust their settings at any time.
Despite some uncertainty about the details of this change, the tech giant has confirmed that Privacy Sandbox APIs will still be available for use. Additionally, Google intends to invest in further improving privacy and usefulness.
However, they are still promising trackless browsing, extending the deadline for cookie deprecation to 2025. This delay gives industry members more time to develop alternative strategies.
Despite the reduced urgency, advertisers should still actively seek third-party cookie alternatives due to the increasing emphasis on consumer privacy.
So what now?
Advertisers Weigh In on Google’s Cookie Decision
This hurdle on our journey to a cookieless future is not set in stone. Plus, it could disrupt emerging alternative identification methods. While we’re waiting for the full impact of this extension on consumers and regulators, the significance of this decision might be lessened by the continued growth of tracker-less environments like connected TV (CTV) and mobile.
Retailers have voiced that the recent announcement has caused much turmoil (although not all were surprised). While it provides some relief to advertisers who rely on cookie-based tracking, the industry is still dedicated to improving privacy and obtaining user consent.
Google is in discussions with regulators about a new approach but hasn’t provided many details yet other than the fact Privacy Sandbox APIs are their “for now” replacement for cookies.
User Choice Central to Google’s New Cookie Strategy
In a recent blog post, Google announced a new approach that focuses on giving users more control. Instead of eliminating third-party cookies, the tech behemoth is adding a new feature to Chrome that allows users to choose how their web browsing works. This choice will apply to all of their internet activity, and users can change it whenever they want.
It is not clear if Google will decide to ask users for permission to use cookies or automatically use them. This is making advertisers uncertain. In 2021, Apple made a rule that users have to say yes before apps can track them.
It all boils down to how consumer behaviors around tracking preferences have changed in recent years. According to data from AppsFlyer, now 50% of users worldwide choose to allow tracking through Apple’s App Tracking Transparency (ATT), which is a 10% increase since it was introduced.
Expect More EU-Style Pop-Ups
We are all familiar with pop-ups on our screens. While they can make messages more noticeable, they can also be distracting and annoying. Notifications, guides, and hotspots should be used sparingly to enhance the user experience. It’s important to consider the overall success of a website or product, including the impact of excessive messages on brand trust.
Google’s decision to leave pop-ups alone made advertisers, publishers, and regulatory authorities express concerns about the drastic change to their advertising tactics. They were worried that this could disrupt the digital advertising industry and give Google too much control. Given the significant resistance, Google’s latest decision is somewhat surprising but not entirely unexpected.
So, if Google continues to use cookies with an opt-out option, consumers may expect to see pop-up notifications similar to those required by the European Union’s General Data Protection Regulation (GDPR). This might make the user experience less enjoyable, but according to industry analysts, it will help both the US and EU meet their legal requirements.
Expert Views On The Path Ahead
Analysts have shared their thoughts on the recent announcement, suggesting that it doesn’t significantly change things. The expected outcome is essentially the same—the only difference is that more users may now choose to keep third-party cookies than if Google imposed the change, so it’s just another step on the journey.
Most advertisers trust that the move to a future without cookies will continue, especially since the industry has spent a lot of time and resources on privacy solutions even after Google delayed it. Additionally, the increasing use of cookieless channels like CTV has made it clear that advertising will have to adapt, regardless of Google’s plans.
Retailers who rely on tracking consumer behavior continue to emphasize the importance of preparing for a future without cookies and how this relates to advertising across different channels. They have also stressed the continued significance of considering consumer choice and consent in response to changing privacy laws.
Google’s Decision Accelerates Shift to Alternative Tracking IDs
In response to the transforming online retail landscape, vendors have been working on creating alternative IDs to track and target while respecting user privacy. Google’s recent announcement is expected to speed up the consolidation of this market, which has already seen the rise of several leading competitors.
According to industry insiders, only a few major identity solutions, such as the walled garden IDs, The Trade Desk’s UID2, and LiveRamp’s RampID, are expected to remain viable in the next year.
Future of Ad-Tech: AI’s Role in Evolving Tracking Solutions
The digital advertising industry’s recent developments could significantly impact alternative ID vendors. It’s important to note that ad-tech providers differ in their offerings, and those who use cookie-based solutions may see a resurgence as they integrate advanced artificial intelligence technology.
Experts predict that more AI-based advertising tools will be developed in the coming months. These tools will analyze cookie-based data to more accurately target customers.
Potential regulations and laws could greatly affect Google’s decisions and the future of online advertising. While it’s unlikely that Congress will vote on the American Privacy Rights Act, the Supreme Court’s recent Chevron decision complicates any potential rules about internet privacy.
Making Adjustments to Signal Loss
As marketers wait for Google’s new strategy, they will need to keep dealing with the problem of signal loss, which is already affecting how they track consumers and target ads. Industry analysts note that over half of US consumers use a mobile web browser that blocks cookies, and more than 30% use ad blockers.
Many brands and agencies might feel relieved by this announcement. However, most will still stress the importance of remaining vigilant. The effectiveness of tracking signals has been diminishing, and if you are a retailer, you should prioritize protecting consumer privacy and adapting to a future without cookies instead of trying to bypass the inevitable decline of cookies.
