Tech behemoth Google is abandoning its turbulent, years-long attempt to remove third-party cookies from Chrome and replacing it with a new experience that enables users to make an informed decision that applies to all of their web browsing, following several delays in phasing out its use across its own browsers. The massive search engine says it will continue to support third-party cookies for users who choose not to disable them. However, Google intends to implement a new solution: a one-time prompt that allows users to set preferences that will apply across Google browsing experiences—in order to improve user privacy while maintaining the effectiveness of advertising.
This “updated approach” is the result of advertisers’ persistent concerns that their capacity to gather data for customized ads will be impacted by Chrome’s phaseout of cookies, forcing them to rely on Google’s user database. A “new experience in Chrome” is being introduced, which will enable users to make decisions about their web browsing that are well-informed and flexible. A new prompt from Google will allow users to select how they wish to be tracked when using its search products.
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Third-party cookies are tiny data files that are used to collect information and display highly targeted advertisements. They typically track an individual user’s online activity without the user’s consent. To protect user privacy, they have been removed from several browsers, such as Mozilla Firefox and Safari. It is important to remember that Google had previously declared that it would postpone the phase-out of third-party cookies until 2025, with the initial phase-out scheduled to begin in 2022. At the time, a number of prominent figures in the industry said that the advertising landscape ought to keep adapting to new developments and experimenting with new platforms that promote the use of first-party and zero data.
According to the UK Competition and Markets Authority, Google’s plan to phase out cookies would have a significant negative impact on competition in the digital advertising space. According to Anthony Chavez, vice president of Privacy Sandbox, which is supported by Google, preliminary testing by ad tech firms, including Google, suggests that the Privacy Sandbox APIs may promote the uptake of privacy-enhancing technologies.
However, Google has decided to maintain the APIs in the Sandbox and will keep investing in them to increase their usefulness and privacy. The Sandbox will get more privacy features, such as the recently revealed IP Protection in Chrome’s Incognito mode.
Read More: Google Delays Third-Party Cookies Phase-Out Yet Again!
Google’s decision to maintain third-party cookies is indicative of how dependent the business is on advertising income. Experts surmise that this might actually be a blessing in disguise, particularly if Chrome users choose to reject third-party cookies as a result of Google’s plan. The APIs in the Sandbox may be able to target users without cookies if a significant number of them decide that cookies are not for them. Although it’s still unclear if consumers will have more options, it’s safe to say that many advertisers were relieved to hear this news. A large number of them were ill-prepared to accept the substantial adjustments needed to operate digital campaigns without cookies.
Still, it is imperative that marketers look into ways to lessen their dependency on cookies and get ready for the future. More than ever, marketers must be open and detailed about the data they gather and use. They also need to learn how to explain to customers that the value lies not only in free samples or content but also in more personalized services, products, and content that improve customer experiences.
More than 90% of the search market is controlled by Google. It has, however, long yearned to strike a compromise between user privacy and advertising demands. In January 2020, Chrome pledged to phase out the technology in two years. However, Google extended its timeline upon realizing that the advertising industry was not ready for the change. The tech giant has since twice extended its deadline, the most recent one being in April of this year. A few months prior, during the testing phase, Google disabled third-party cookies for one percent of Chrome users worldwide.
Google has canceled its plans to phase out third-party cookies, but not before scaring many marketers into focusing on taking control of their own first-party data and considering full-funnel tracking and dismantling internal silos. With this change, markers can now produce more tailored and pertinent content to increase traffic and make efficient use of their first-party cookies for attribution and remarketing.
From the standpoint of the customer, this change is essential. Users expect brands to prioritize their privacy while maintaining the quality of their ads as they grow more aware of data privacy. Contextual advertising also lives up to these expectations, offering a smooth and unobtrusive experience.
Read More: Google Plans to Phase-Out Chrome Third Party Cookies On January 4, 2024
After carefully weighing the opinions of many stakeholders, including publishers, web developers, standards organizations, civil society, the advertising industry, and regulators like the UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Officer (ICO), the decision was made to implement a new user “experience” rather than sunset third-party cookies.
In addition to the regulators’ concerns, Google has been under increasing pressure from the publishing and advertising sectors. The Privacy Sandbox’s effect on campaign performance and advertising effectiveness is one of the industry’s main worries. In addition to raising antitrust issues, new research suggests that Google’s Privacy Sandbox terms might be unlawful in terms of privacy.
Anthony Chavez, vice-president of Privacy Sandbox, in a blog post said,
“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.”
He further added,
“As this moves forward, it remains important for developers to have privacy-preserving alternatives. We’ll continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility. We also intend to offer additional privacy controls, so we plan to introduce IP Protection into Chrome’s Incognito mode.”
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