Cookieless future is inevitable, but delay in transition will boost brands’ preparation

Google’s decision to delay the phasing out of third-party cookies in Chrome by 2024 has come as a surprise. Earlier, the search giant had envisaged to stop the cookies in 2022, which was further extended. Basically, the search behemoth wants more time for testing its Privacy Sandbox, which is said to be an alternative mechanism for targeted advertising.

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Cookies, those tiny codes which websites use to track user behaviour, have of late come under scrutiny over privacy concerns.

The idea is to slowly migrate from third-party cookies to the Privacy Sandbox. Google is treading cautiously as it has come under the scanner of US and UK lawmakers over its dominance in the ad-tech industry. The search giant is already facing second lawsuit in the UK in this regard.

Industry stakeholders have agreed that Google’s Privacy Sandbox needs a longer-than-usual testing window. Developers have now been given access to the trial version of the Privacy Sandbox API; this month (August) the trial version will be extended to tens of thousands of people all over the world.

“This deliberate approach to transitioning from third-party cookies ensures that the web can continue to thrive, without relying on cross-site tracking identifiers or covert techniques like fingerprinting,” blogged Anthony Chavez, Vice President of Google’s Privacy Sandbox initiative.

“The most consistent feedback we’ve received is the need for more time to evaluate and test the new Privacy Sandbox technologies before deprecating third-party cookies in Chrome. This feedback aligns with our commitment to the CMA to ensure that the Privacy Sandbox provides effective, privacy-preserving technologies and the industry has sufficient time to adopt these new solutions. This deliberate approach to transitioning from third-party cookies ensures that the web can continue to thrive, without relying on cross-site tracking identifiers or covert techniques like fingerprinting,” Chavez wrote on the blog.

He informed that by 2023 Q3, the Privacy Sandbox APIs will be launched and available in Chrome. “As developers adopt these APIs, we now intend to begin phasing out third-party cookies in Chrome in the second half of 2024,” he added.

It is a fact that advertisers and marketers are not yet prepared for switching over to a cookieless future. Now, brands have more time at their disposal to calibrate and strategise their advertising strategies for Chrome users. Brands need to have a coherent first-party data strategy to stay ahead of competition.

“Google continues to delay the deprecation of cookies because despite several rounds of warnings, the digital marketing industry still depends on the data they provide to target and personalise campaigns. But a cookieless future is inevitable, and this latest delay gives marketers another chance to consider what that future will look like,” Eric Vreeland, Vice-President of Marketing, People Data Labs, told The Drum.

According to Tonic Worldwide Founder-CEO Chetan Asher, Google realises that unless a strong replaceable solution is in place, it will hurt not just their own ad revenues, but of the entire publishing ecosystem. “There are no easy solutions considering even FLoC wasn’t perfect; Google surely needs to take their time to test, evaluate, and roll out a solution that works for all,” he adds.

While it is good news as far as marketers and businesses are concerned, consumers are kind of clueless as to what lies ahead.

“The future of identity lies in the ability to leverage direct, consumer-consented sources and to be smarter about signals that are not attached to a consumer’s identity. While any delay gives the industry more time to test and learn, adapting solutions today brings greater reach across all inventory – with or without IDs,” said Yahoo Chief Business Officer Iván Markman.

Yahoo has launched a new unified ID solution ahead of a cookieless world. Named, Yahoo ConnectID, it seeks to help publishers and advertisers reach consumers. Its Next-Gen solutions leverage billions of real-time signals to help advertisers deliver relevant experiences and publishers monetise better.

“The ongoing identity revolution is drawing a line in the sand between advertisers and publishers who have access to first-party data, and those who do not. In the cookieless future, opted-in data will allow brands and platforms to deliver meaningful ad experiences to audiences. Powered by our proprietary identity graph, Verizon Media’s unified identity solution, ConnectID does just this – empowers advertisers to draw on hundreds of millions of opted-in users from across Verizon Media’s global portfolio of owned and operated media properties, and is the industry’s only independent ad platform with a full-stack DSP and SSP,” according to a Yahoo Adtech article.

“While publishers and Adtech companies have been preparing for the deprecation cookies for several years, this delay has given furthermore time to investigate and invest in privacy-enhancing technologies to ensure first-party data can be used across advertising use cases. Technologies such as Consent Management Platforms, Customer Data Platforms, Data Clean Rooms and Identity Solutions can ensure use of customer data in a secured manner in the post-cookie world. Investments on testing will continue on these data-driven technologies, while third-party cookies are still available, advertisers will be able to directly compare performance and be better prepared for the cookieless future,” said Lalatendu Das, Performics India, CEO (Publicis Groupe).

“Eventually, advertising a brand will need to build its own customer data platforms because they will have to target customers not dependent on cookies. Right now, thanks to cookies, brands have an easy way to target their customers. They are able to follow what a consumer looks at,” says Lloyd Mathias, Angel Investor & Business Strategist.