Google abandons third-party cookie deprecation plans

News is out: Google just hit the brakes on eliminating third-party cookies in Chrome. This shift, influenced by input from industry giants like the IAB Tech Lab, the UK’s Competition and Markets Authority (CMA), and the Information Commissioner’s Office (ICO), has significant implications.

After years of preparing for a cookie-less future, publishers face strategic ambiguity: to revert to cookie-based models or continue with privacy-first alternatives. While many in the industry might view this as a reprieve, it’s crucial to recognize the underlying signal.

• User Privacy Settings: Google will introduce a one-time prompt for users to set privacy preferences, potentially impacting targeted advertising effectiveness.
• Privacy Sandbox APIs: Ongoing refinements could affect ad precision and revenue, while new measures like IP address obfuscation will further complicate ad tracking.

This signals a clear move towards user privacy. Publishers may face revenue declines if they continue to rely solely on third-party cookies.

What Should Publishers Do?

• Build First-Party Data: Develop robust first-party data strategies to reduce dependence on third-party cookies.
• Identity Solutions: Explore and invest in alternative identity solutions like Unified ID 2.0 or LiveRamp’s Authenticated Traffic Solution (ATS).
• Contextual Advertising: Transition towards contextual advertising, targeting ads based on the content rather than user behavior.
• Data Clean Rooms: Implement data clean rooms to allow secure, privacy-compliant data collaboration between brands and publishers.
• Engage with Privacy Sandbox: Actively participate in the testing and development of Privacy Sandbox APIs to fully understand their impact and optimize their application.

This period is not just a reprieve but an opportunity for publishers to strengthen their first-party data practices. The future of ad tech is increasingly user-centric. Adapting now is essential for staying relevant and competitive.