In a Important Policy Change Google has announced that it will continue supporting third‑party cookies in Chrome browsers beyond 2024. This decision comes after years of promises to phase out these trackers in favor of improved user privacy. Although the original plan has been postponed multiple times, Google’s choice to retain cookies reflects the complex balance between privacy concerns and the practical needs of advertisers and publishers. So, what does this mean for us?
Google’s New Philosophy
Since 2020, Google has been working to phase out third-party cookies. Its effort to build a “Privacy Sandbox” was intended to create a new ecosystem without relying on cookies. However, after various tests, Google appears to have realized that traditional cookie-based remarketing performs better than the new Privacy Sandbox model. This effect was particularly noticeable in retargeting campaigns, but even standard conversion campaigns showed that the Privacy Sandbox did not yet match the effectiveness of the current approach.
The Impact on Publishers
Additionally, we see that publishers experience a decline in revenue when third‑party cookies are removed and when they do not enable the Privacy Sandbox. Publishers using Google Ad Manager saw programmatic ad revenue drop by 34% when selling ads without third‑party cookies and without implementing the Privacy Sandbox. Even with Privacy Sandbox implemented, there was still a decline: programmatic ad revenue fell by 20% for publishers selling cookieless ads via Google Ad Manager within the Privacy Sandbox. In short, both Google and publishers generate less revenue without third‑party cookies.
What’s next for advertisers?
For advertisers, this decision means that the online advertising landscape won’t undergo the drastic changes that were once expected. Cookies have been essential for targeted advertising, enabling precise ad personalization and effective retargeting. The continued support of cookies allows advertisers to maintain their current strategies without needing immediate overhaul. However, Google already accounts for about 50% of cases where measurement is poor. Often, we see that Google (and Meta) apply modeling to link data to unmeasurable inventory, which is something advertisers should keep a close eye on.
Draft Digital’s Perspective
At Draft Digital, we believe companies cannot continue to rely solely on Google and its third‑party cookies. Consumer expectations are evolving, with growing demands for privacy and personalized experiences. Google’s dominance in the browser market doesn’t cover all devices and browsers, Apple is leading the way in phasing out third‑party cookies.
We believe every advertiser needs to move away from third‑party cookies and focus on alternative tracking methods, especially new ways to engage consumers safely and effectively. Ultimately, it should be a balanced mix of performance and truly listening to the consumer. Advertisers must be willing to invest time and effort in understanding their audience to deliver real value.
The Future of Privacy and Advertising
Although Google will continue to support cookies, it remains committed to developing the Privacy Sandbox. The introduction of new privacy controls, such as IP protection in Chrome’s incognito mode, shows that Google intends to make progress. Nevertheless, these measures fall far short of what was initially expected.
Final Thoughts:
Google’s reversal on phasing out cookies highlights the delicate balance between privacy and functionality in online advertising. At Draft Digital, we emphasize the importance of responsibility, integrity, and growing together. As the digital landscape continues to evolve, we are committed to helping our clients navigate these changes with confidence and continual improvement. Want to learn more? Feel free to contact us via this link. (link).
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