Google abandons third-party cookie deprecation plans

Google is walking back its decision to depreciate third-party cookies in its Chrome browser. The move comes after years of planning, testing, and delays as the tech giant attempted to thread the needle between user privacy and satisfying competition authorities who had concerns the move would unfairly advantage Google’s own ad business. 

Instead of unilaterally turning third-party cookies off, Google says they plan to allow users to make “an informed choice” about whether to continue to allow cookies, or to opt in to their Privacy Sandbox. 

Announcing the decision, Google Privacy Sandbox VP Anthony Chavez wrote:

We are proposing an updated approach that elevates user choice. 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.

In a separate blog announcing the results of their display ads experiment with the Privacy Sandbox APIs, the Google Ads team said that in certain scenarios, advertisers were seeing recovery rates as high as 97%. Specifically, campaigns focused on conversions only, they saw a 97% recovery in conversions per dollar (CPD), and 95% CPD recovery in Display & Video 360.

Other results were less promising. Remarketing showed a 55% advertiser spend recovery in Google Ads and 49% in Display & Video 360. Explaining the low recovery rate, the Ads team wrote:

These results are likely because remarketing today is more reliant on third-party cookies which enable a highly precise level of ads personalization, and the eligible inventory is limited because few supply side platforms (SSPs) are currently testing the Privacy Sandbox.

What does this mean for my marketing?

For the time being, at least, it’s just business as usual. If you were reliant on third-party cookies before this announcement, then for the time being at least they are going to continue to work. 

That said, the demise of cookies feels inevitable, even as Google walks back from totally killing them in their own browser. Safari, Firefox and others are already implementing automatic cookie blocking. Google’s new plan is to give users the option to allow third-party tracking, something Apple did with in-app tracking on iOS back in 2021 – reportedly resulting in 75% of users declining to allow tracking.

So, we personally wouldn’t recommend relying on third-party cookies for your marketing efforts in the long term. Instead, you should consider the following: 

Invest in first-party tracking solutions for your website 

While the phasing out of third-party cookies may seem like a setback, it actually presents an opportunity. First-party data - that is, data you collect directly from your audience - is a valuable asset. It's more reliable and accurate than third-party data, as it comes straight from the source. So, investing in first-party tracking solutions for your website is a positive move. It allows you to gather more of your own data, giving you a better understanding of your audience's behaviour and preferences. Explore CRM solutions like Hubspot or Salesforce, and on-site tracking software like Hotjar or Microsoft Clarity, but in all instances make sure you are in compliance with local privacy and data protection laws.

Focus now on customer value and build relationships with your audience

The loss of third-party data means you're going to need to spend more time and resources on building relationships with your audiences to gather that first-party data. This means focusing on providing value to your customers, engaging them with relevant content and offers, and encouraging them to interact with your brand. This not only helps you collect valuable data but also fosters loyalty and trust, which can lead to higher customer retention and conversion rates.