Third-party cookies have long been a staple in digital advertising, enabling advertisers to track users across different websites and deliver targeted ads. However, users are increasingly aware of and concerned about how their data is collected and used, leading to calls for greater transparency and control.

In response to these concerns, Google announced in 2020 its plan to phase out third-party cookies by 2022. To meet the needs of users, advertisers, and regulators, Google launched the Privacy Sandbox, an initiative that aims to “create technologies that both protect people's privacy online and give companies and developers tools to build thriving digital businesses.”

However, stakeholders in the industry voiced their concerns that implementing these new methods and technologies was proving to be a major technical undertaking, and they were concerned that it would pose a significant disruption to their business operations. So after years of consulting with these stakeholders, as well as regulators like the UK’s Competition and Markets Authority (CMA) and Information Commissioner's Office (ICO), Google announced a new phase of this privacy journey.

The New Approach

In the announcement, Anthony Chavez, VP of Privacy Sandbox, proposes giving users the ability to choose to be tracked by third-party cookies instead of getting rid of them completely. Chavez writes, “In light of this, 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.” Additional privacy controls are also planned to be introduced, such as IP Protection for Chrome’s Incognito mode, which could be available in the near future.

Chavez does not provide a specific timeline for finalization, but adds that they are continuing to discuss this new approach with regulators and industry stakeholders and urges developers to keep a focus on creating privacy-preserving alternatives. Google has also reiterated its commitment to privacy and will continue to improve the “privacy and utility” of their Privacy Sandbox initiative.

For online privacy advocates, this change can feel like a double-edged sword. On the one hand, third-party cookie tracking continues. On the other hand, it provides more time for the development of better privacy-centric solutions and for the industry to adapt to new practices.

What Does the Future Hold?

While this announcement gives advertisers more time to adjust their strategies, it also creates some uncertainty about what’s next. Will Google pull an Apple with their App Tracking Transparency (ATT) initiative? Todd Parsons, Criteo’s chief product officer, told Digiday that he believes that, unlike Apple, Google will communicate user choice in a way that clarifies the benefits of opting in versus opting out and take a “fair and balanced approach to that messaging.” Others are more skeptical that enough users will opt-in to provide measurable data.

Time will tell how this new approach will shake out. Google loves to throw curveballs at us, and companies will need to stay agile and adapt to evolving privacy regulations and tools. Diversifying advertising approaches, exploring first-party data strategies, and engaging with privacy-friendly technologies are some ways advertisers can stay ahead of the curve.

Google’s decision to delay the phasing out of third-party cookies is a pivotal moment in the ongoing debate over privacy and digital advertising. As we move forward, the balance between privacy and advertising will continue to be a critical issue as the digital landscape continues to evolve.

If you want to start improving your digital advertising and personalization efforts, contact Blue Acorn iCi to learn more.