Chrome keeps third-party cookies: What it means for marketers

In a surprising turn of events, Google recently announced that it will delay its plan to phase out third-party cookies in the Chrome browser. This decision has sparked significant conversation among marketers, privacy advocates, and industry experts.

Let’s look into what this development means for the marketing landscape, the future of online tracking, and the implications for privacy and advertising.

Understanding third-party cookies

To fully grasp the impact of Google’s decision, it’s essential to understand what third-party cookies are and how they function. Third-party cookies are pieces of code placed on a user’s device by websites other than the one they are visiting. These cookies track user behaviour across different websites, gathering invaluable data for targeted advertising.

For marketers, third-party cookies have been a cornerstone of digital marketing strategies. They allow for precise audience segmentation, personalised ad delivery, and comprehensive campaign performance analysis. However, they have also been at the centre of privacy concerns, as they enable extensive tracking of users without their explicit consent

Google's initial plan and the industry response

In January 2020, Google announced its intention to eliminate third-party cookies from Chrome by 2022, pushing the deadline to 2023. This move was part of its Privacy Sandbox initiative, aimed at enhancing user privacy while still supporting the ad-funded web. The industry response was mixed. Privacy advocates welcomed the change, viewing it as a step towards greater user control over personal data. Marketers and advertisers, however, were concerned about the potential disruption to their targeting capabilities and overall ad effectiveness.

Several alternatives to third-party cookies were proposed, including Google’s Federated Learning of Cohorts (FLoC) and Topics API. These solutions aimed to strike a balance between privacy and advertising needs but faced criticism for their effectiveness and potential new privacy risks.

The U-turn: Chrome to keep third-party cookie

In a significant reversal, Google announced that instead of deprecating third-party cookies, they are focusing on launching a new Chrome experience for users, putting privacy in their control. This decision allows more time for the industry to adapt to new privacy-preserving technologies and ensures these technologies meet the needs of both users and advertisers. As Will Dixon, Head of Paid Media at Click Consult PPC, notes;

“As a business that’s been around since Google Ads launched, we’re used to Google pushing back deadlines but a full U-turn is rare. It’s a welcome U-turn but on something that we’ve spent significant time trying to get our head around to work around, which feels like at least partially wasted time.

Implications for Marketers

For marketers, this reversal offers a relief. The reliance on third-party cookies has been deeply ingrained in digital advertising practices. The additional time allows marketers to continue leveraging these cookies while exploring and testing new methods for tracking and targeting.

Continued dependence on third-party cookies

Marketers can maintain the status quo for a bit longer, continuing to use third-party cookies for granular audience targeting, personalised ad delivery, and performance measurement. This is particularly important for smaller businesses and agencies that may not have the resources to quickly pivot to new technologies.

Opportunity to innovate

Whilst the reversal offers relief, it should not be seen as a reason to delay innovation. Marketers have an opportunity to explore and experiment with alternative tracking methods, such as first-party data strategies, contextual advertising, and the emerging Privacy Sandbox solutions. Proactively adopting these methods will position businesses for success in a future where third-party cookies are eventually phased out.

Focus on first-party data

One of the most promising areas for marketers to explore is the use of first-party data. Unlike third-party cookies, first-party data is collected directly from users by the website they are interacting with. This data is generally more reliable and can help build strong customer relationships based on trust and transparency. Marketers should invest in robust data collection and management practices, ensuring they can derive valuable insights while respecting user privacy.

As Will Dixon, Head of Paid Media at Click Consult PPC, comments;

“The additional time allows marketers to continue leveraging these cookies while exploring and testing new methods for tracking and targeting. It’s a chance to adapt rather than rush into new solutions

Implications for privacy and user trust

Whilst the retention of third-party cookies in Chrome might seem like a setback for privacy advocates, it also underscores the complexity of balancing privacy with the economic needs of the ad-supported internet. Google’s decision reflects the need for more time to develop and test privacy-preserving technologies that can genuinely replace third-party cookies without compromising user experience or advertising effectiveness.

Building user trust

As privacy concerns continue to grow, building and maintaining user trust should be a priority for marketers. Transparent data practices, clear privacy policies, and giving users control over their data can help nurture trust. By demonstrating a commitment to user privacy, businesses can differentiate themselves in a competitive market and build lasting customer relationships.

Navigating regulatory landscapes

Marketers must also stay informed about evolving privacy regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States. Compliance with these regulations is not only a legal requirement but also an essential component of responsible data management and user trust.

The future of online advertising

Google’s decision to retain third-party cookies for now signals that the future of online advertising is still in flux. The advertising industry must navigate this transitional period with agility and foresight. While the road ahead may be uncertain, several key trends are likely to shape the future of online advertising.

Increased focus on privacy-preserving technologies

The development of privacy-preserving technologies will continue to be a significant focus. Solutions that can balance user privacy with advertising needs, such as Google’s Privacy Sandbox, will be critical. Marketers should stay informed about these developments and be prepared to adapt their strategies accordingly.

Shift towards contextual advertising

Contextual advertising, which targets ads based on the content of the web page rather than user behaviour, is gaining traction as a privacy-friendly alternative to third-party cookies. This approach can deliver relevant ads without invasive tracking, making it an appealing option for privacy-conscious marketers.

Emphasis on user experience

As privacy becomes a more prominent concern, the user experience will be a key differentiator. Marketers should prioritise creating seamless, respectful, and engaging online experiences. This includes minimising intrusive ads, ensuring fast load times, and providing value through personalised content.

Will Dixon, Head of Paid Media at Click Consult, emphasizes;

“We’ve always found the fundamentals of UX and SEO match up to Paid Media when it comes to landing pages for 99% of the journey designing a page—it’s only the final tweaks that matter to form a Paid Media specific landing page.”