POV

In a surprising turn, Google has now said that it will not deprecate third-party cookies after all. What happened here, what happens next, and what does it mean for the industry?

Google first announced plans to phase out third-party cookies in Chrome in 2020, aiming to enhance user privacy and move towards more secure web browsing. However, this timeline was delayed multiple times due to a combination of regulatory pressures and industry pushback. 

The UK’s Competition and Markets Authority (CMA) had been closely monitoring Google's Privacy Sandbox initiative, concerned about potential antitrust issues and the impact on market competition. Additionally, early tests of Privacy Sandbox APIs revealed performance issues such as increased latency and lower yield, prompting further scrutiny and calls for more time to develop viable alternatives. Meanwhile, the US Department of Justice (DOJ) is also challenging Google on antitrust grounds.

With all this going on, Google made the calculation that cookie deprecation couldn’t move ahead as scheduled.

What Happens Next?

Google's updated approach includes maintaining third-party cookies while enhancing user privacy choices through a new opt-in model. This model aims to provide users with clear, informed decisions about their data, potentially resembling Apple’s App Tracking Transparency (ATT) framework. The specifics are still being determined, but this shift could lead to higher opt-out rates and a larger cookieless audience for testing Privacy Sandbox APIs.

The language of the opt-in message will be critical. Apple's ATT framework, which introduced a clear and direct opt-in prompt for data tracking, led to an average opt-out rate of around 85% globally. This high opt-out rate effectively deprecated the mobile ad IDs that many advertisers relied on. If Google's opt-in model follows a similar path, we could see a significant de facto deprecation of third party cookies in Chrome; ie. a different path to the same result.

Additionally, the recent antitrust ruling against Google, declaring it a search monopoly, adds another layer of complexity. With the decision on Google's adtech business looming, the regulatory environment is becoming increasingly stringent. The upcoming DOJ antitrust lawsuit focused on Google's digital advertising practices could further influence the landscape and Google's strategic decisions. And in the case of cookie deprecation, one could argue it already has.

What Does It Mean for the Industry?

The industry spent five years preparing for a cookieless future, and those efforts were not in vain. Google's decision does not mean that cookies are here to stay in Chrome indefinitely. The opt-in framework is still undecided, and privacy regulations and standards continue to evolve and expand. Signal deprecation—or perhaps “signal evolution”—remains a fact of life.

While Google's decision provides temporary relief, it does not address the fundamental issues related to privacy and data security. If anything the delay underscores the unreliability of signals and the necessity for the industry to continue advancing its strategies for a multi-ID future.

The Multi-ID Future

Transitioning to a multi-ID framework is crucial for the future of digital advertising. This approach leverages a combination of authenticated and probabilistic identifiers, incorporating situational data triggers such as context, weather, location, and language. It also will include cookies, but their role will diminish and better alternatives exist. The key to this framework is “multi” as cookies proved that over-reliance on any single signal will create significant holes in addressing the right consumers consistently.

Marketers should prioritize the transition to a multi-ID landscape by seeking out platforms that enable interoperability, scalability, and flexibility. By doing so, they can ensure compliance with evolving privacy regulations and enhance the effectiveness and reliability of their digital advertising campaigns.

Moving Forward

Despite Google's delay in cookie deprecation, the industry must continue to innovate and adapt. Rather than a reversion back to the status quo, the lesson here is the unreliability of cookies and the need for robust, privacy-compliant alternatives. Embracing a multi-ID framework and prioritizing privacy and innovation will position the industry to decide its own fate. By continuing to move forward, the digital advertising community can overcome challenges and ensure a stable and privacy-compliant ecosystem, independent of Google’s timeline.