Cookie Deprecation is Dead: What Should the Industry Do Now?

After what feels like half a lifetime discussing how best to prepare for a cookieless future and arming ourselves for the great third-party cookie demise, Google has abandoned its deprecation plan for Chrome. Surprising? We’ll let you be the judge of that. 

In a blog post published on Monday, Anthony Chavez – vice-president of Privacy Sandbox – briefly detailed Google’s new plan. Instead of going through with third-party cookie deprecation, Google now intends to “introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing”. Users will be able to adjust their privacy choices at any time. At this point, the pivot is fairly ambiguous and nonspecific. The Privacy Sandbox APIs will still be available to all those who wish to continue using them, backed by further investment aimed at enhancing privacy and utility. 

So, what now? With Chrome’s cookieless future no longer looming, the landscape suddenly looks quite different. Google’s latest deprecation delay had shifted the deadline to 2025, giving industry members even more time to get their post-cookie plan in order. Although the pressing need to get alternative solutions in place has decreased, advertisers would be foolish to abandon the pursuit of third-party cookie alternatives entirely. For quite some time now, privacy-centric solutions have been an obvious choice for many advertisers as increasing focus is placed on consumer privacy. 

We asked leaders from across the advertising landscape: what should the industry do now? 

Google's decision does not change the current path of media measurement evolution

Not only is this decision unsurprising, but it also doesn’t change the current path of media measurement evolution. Focus has long been shifting towards attention as a key metric for understanding what was seen, not simply observed – and it’s going to keep moving that way.

Live assessment of real human attention will still be essential to fix the long tail of poor impressions from those who don’t opt out. Equally, attention will also provide a vital means of refined audience segmentation if users do switch off cookies. Regardless of what action Google takes, the industry will continue its forward attention-led progress.

Karen Nelson-Field, CEO and Founder, Amplified Intelligence

The slow march of progress will still see third-party cookies rendered obsolete sooner or later

Google may no longer be ending third-party cookies by its own hand, but the slow march of progress will still see them rendered obsolete sooner or later. Users and regulators are increasingly privacy-focused and, given cookies will be “opt-in” across the board, there will still be a need for other signals to fill the gaps — especially across channels where cookies are long gone or were never present to begin with.

The fate of third-party cookies will be as a small part of an ever-expanding array of data points, becoming less relevant over time as more privacy-first, platform-agnostic solutions evolve. No one that wishes to remain competitive should think they can take their foot off the pedal of first-party data collection and strategic data collaboration. 

Chris Hogg, Chief Revenue Officer at Lotame

Now that the cookie chapter is closed, the industry has an opportunity to refocus sustainability

The recent news that Google will no longer be removing third-party cookies from Chrome brings mixed reactions. On one hand, it's important to highlight that third-party cookies contribute to higher energy consumption. The digital marketing industry has such an incredible impact on the environment, and the inclusion of third-party cookies demands higher energy output.

However, there is a silver lining. The prolonged debate over the fate of third-party cookies has been a huge distraction. Now that this chapter is closed, the industry has an opportunity to refocus sustainability which is a more pressing issue. Refocusing our efforts on sustainability will yield far greater benefits for both the industry and the environment.

David Shaw, Co-Founder & CEO, Cedara

The move is an encouraging sign of Google’s receptivity to industry feedback

This latest twist in the deprecation ride is another encouraging sign of Google’s receptivity to industry feedback. But while a full cookie phase-out is finally off the cards, ensuring we continue to provide robust privacy-preserving technologies remains crucial. All of the hard work companies have devoted to developing and testing alternative solutions has driven a positive step forward that mustn’t be dialled back. Instead of taking this decision as an excuse to reinstate business as usual, the industry should welcome the major innovation that has taken place over the last four years, driven by Google’s many delays, and commit to giving consumers better choices about how their data is used, now and in the future.

Marisa Nelson, Executive Vice President, Marketing & Communications, Equativ

This shouldn't mean a return to cookies as the default

This news represents a significant shift in Google’s approach to third-party cookies, but it isn’t and shouldn't be a return to cookies as the default. Our industry has made huge progress over the past four years and this process has irrevocably reshaped the digital ecosystem – that doesn’t just evaporate with the removal of Google’s cookie deadline. The reality is that a big proportion of the open web can’t be addressed by third-party cookies already so continuing to pursue other ways of targeting and measuring audiences is vital. It’s also important to note that the ICO has responded by encouraging the industry "to move to more private alternatives to third-party cookies – and not to resort to more opaque forms of tracking". 

Many of our members have more questions than clarity and we are working to ensure that we get answers and the industry’s views are heard. Ultimately, our hope is that the removal of Google’s deadline restores a level of certainty and control to the wider industry that is conducive to further productive collaboration and development in this area. We will continue to support all of our members on this journey.

Jon Mew, CEO, IAB UK 

Putting users at the heart of privacy and consent across the open web will improve the value exchange

Despite the backtracking by Google there will no doubt be a place for the continued innovation in adtech to provide audience targeting and measurement in a world with or without cookies.

Putting users at the heart of privacy and consent across the open web will improve the value exchange between publications, brands and their customers, which reading between the lines of the recent announcement from Google will be a future step change in the delivery of advertising online through Chrome, not dissimilar to Apple's Safari, but at a greater scale.

Disintermediating the control of information to a browser may be limiting in terms of the value exchange a user will get for sharing their data. Advertiser investment may shift into opportunities like retail media/data networks to exercise better consumer experiences if they consent to their data being used, representing a greater value exchange.

It is safe to say that there are many unknowns at this point, however the industry is geared and ready to better monestise content and drive high value user experiences regardless of a fundamental shift in Google's deprecation of the 3rd party cookie, having a varied strategy in finding audiences online will yield greater results for advertisers by target individuals in high value, lower priced environments.

Fern Potter, SVP Strategy & Partnerships, Multilocal 

What will Privacy Sandbox's fate be?

Google's decision wasn't a massive surprise: too much money was at stake, and they couldn't find a solid alternative. Judging by the jump in Criteo’s shares following the news, the industry has welcomed the move. The question is, what will be the fate of Privacy Sandbox? Google has said it will continue development, but unless there’s pressure from the industry, it’s unlikely there’ll be movement until the legal cases in the US and EU are concluded. Over the coming months, we are likely to see Google make improvements to the existing cookies and evolve them into something that will be easier to digest for privacy advocates.

Whatever happens, publishers must continue to prioritise the development of first-party data rather than relying solely on third-party data and DSPs for user identification. The risk now is assuming we can relax. The benefits of this decision will only be realised if ad tech providers continue to push for cookieless innovation and strengthen collaboration with their advertiser and supply-side partners. Let’s not forget that Safari still has, and will continue to have, a considerable share of users, so industry players need to be able to work with this traffic.

Madi Bachar, VP Global Sales, MGID

Advertisers must continue their trajectories towards a cookieless future

With ongoing back and forth on a decision, this announcement isn't a complete surprise and we know many will be glad to delay change a little longer, to ensure enhanced privacy measures are fit for purpose and not rushed. 

Despite some specifics remaining uncertain, Google’s update does not alter the direction of travel towards a more privacy-conscious landscape, something Mantis is well-prepared for, thanks to our signed-in users and established IDs. Advertisers must continue their trajectories towards a cookieless future – or at least, one where their impact is diminished. 

With regulatory bodies such as the ICO still discussing the unsuitability of cookies, and with the exact nature of Google’s Privacy Sandbox remaining unclear, let’s not discount another twist in the cookie saga. This latest development benefits the ecosystem by preventing the implementation of inadequate solutions (like FLoC, FLEDGE or Topics), and enabling meaningful conversations with advertisers about embedding contextual advertising and its performance advantages. 

Continuing to implement contextual tools and first party data strategies should be an ongoing priority for advertisers looking to reach their target audiences in an effective way.

Fiona Salmon, Managing Director, Mantis

This move raises questions about the consistency and reliability of Google's approach

It's quite astonishing that Google has decided not to deprecate third-party cookies, opting instead for a new approach to consent. Why couldn’t this strategy have been done in parallel and even independently? This shift comes after years of effort from industry participants to prepare for a Sandbox future, one without third-party cookies, raising questions about the consistency and reliability of Google's approach.

In the downstream of it, there is one central change. This move gets Google out of the gridlock of the CMA. In addition, Google's ability to control the fate of cookies through other mechanisms still leaves all power in its hands, and so this move does not change the control dynamics. Likely without any type of regulatory approval, this development also underscores the ongoing tension between new regulations in the fields of privacy and competition law against the influence that "Very Large Platforms" have on many dimensions of the Internet. 

Despite today's announcement, Google still stays at the helm of crucial decisions and regulators will struggle to keep up with the pace and Google's ability to pivot from even such fundamental changes.

Jochen Schlosser, Chief Technology Officer, Adform

We should proceed cautiously until we understand the exact details of the new “user choice” plan

Google’s recent reversal will be welcomed by many in our industry, but we should proceed cautiously until we understand the exact details of the new “user choice” plan.

The proposal may mirror Apple's iOS "ask app to track" or "allow tracking" framework. A similar outcome in Chrome could effectively see a majority of users opting out of sharing third-party cookies and mean Privacy Sandbox APIs will serve as a fallback solution rather than a primary one.

This shift would still signal the near deprecation of third-party cookies, just in a different form. Index will continue to support and test new industry solutions and encourage our customers to prepare for potential changes by exploring alternative privacy solutions and strategies.

Cadi Jones, SVP EMEA, Index Exchange

The future of people-based signals looks increasingly cloudy

We’ve been saying for quite some time that Google's cookie deprecation saga was a mere distraction – a red herring diverting attention from the bigger issue of widespread signal loss. As Chrome shifts to offering consumers the choice between cookies, Sandbox, or opting out completely, the future of people-based signals looks even more cloudy.

With 70% of consumers already masking their data from profiling, the focus needs to shift to intent-led targeting. This approach offers targeted reach without the complications of profiling, IDs, or cookies – across all browsers.

Carl White, CEO, Nano Interactive

The horse has already bolted from the barn

Google’s announcement on their stay of execution of the cookie in Chrome is more of a recusal from the debate. By more easily putting the power in the hand of the consumer, they can change the conversation and get out of what was previously a no-win position.

But in fact, the horse has already bolted from the barn as more than 65% of consumers already have cookies disabled, including the billion iOS/Safari users representing the most valuable consumers on earth. Google’s move, by making it easy for consumers to disable cookies will only further widen the gap.

Smart advertisers are developing strategies away from cookie-based advertising to utilising publisher signals. These advertisers are experiencing two to three times the reach, increased sales, and lower CPAs, crossing the reachability chasm.

Jay Stevens, CCO, Permutive

It's safe to assume that we will see significant signal loss

Whilst Google’s announcement rippled around the industry on Monday evening, the initial shock that it wasn’t just another delay, swiftly turned into pragmatism on Tuesday morning. For a long time agencies have been working closely with their clients to ensure robust testing in this area, and this will continue with a multi-signal approach as essential as ever. 

Although not yet clear what the new User Choice will look like, it is safe to assume that we will see significant signal loss – with an obvious comparison being the release and subsequent impact of iOS 14.5 in 2021. 

We will continue to leverage our relationships with Google to gain more clarity on the changes, all the while continuing to tread the testing path we have already laid out.

Amy Lawrence, Chair of the IPA Digital Media Group & Digital Partner, EssenceMediacom

The future will depend a lot on the development of the browser landscape

Short term, Google’s decision means having to get over the countless hours spent on cracking alternatives and on understanding Google’s Privacy Sandbox.

Long term, it will depend a lot on the development of the browser landscape. Safari hasn’t accepted third-party cookies in a long time. A lot of content consumption is happening in Safari, or in in-app browsers, in CTV, through gaming consoles etc. Whether ad land can keep pretending that internet users and (non-incognito) Chrome users are synonymous, will depend on the share of content consumption happening in Chrome.

Anders Lithner, CEO, Brand Metrics

The industry continues to move towards a more user-centric and privacy-compliant ecosystem

Despite Google’s U-turn on third-party cookie deprecation, the wider industry continues to transform towards a more user-centric, privacy-compliant and interoperable ecosystem, enriched by addressable and contextual signals. AI-powered Smart Curation platforms are perfectly positioned as one of the leading solutions, interpreting all data without signal loss, enriching with curators’ data and meeting omnichannel targeting needs.

Filippo Gramigna, co-CEO, Onetag

Cookies are on the way out

Irrespective of Google’s decision to backtrack on third-party cookie deprecation, we already know that cookies are on the way out as we look to more effective solutions that respect user privacy.

Google itself has promised to let users ‘make an informed choice that applies across their web browsing’, which of course is great news for advertisers and consumers. But at the same time, with cookies already deprecated in Safari, Firefox and Edge, around 30-40% of the open web is already non-addressable through third-party cookies, hence the plethora of technologies that have already emerged to replace cookies in the long term.

Owen Hancock, RVP Marketing EMEA, impact.com 

The future is privacy-centric

The reprieve for third-party cookies doesn't change the fact that most consumers don't want to be tracked across the web. The future is privacy-centric, and organisations must embrace tools that allow them to achieve effective advertising performance in a way that doesn't compromise consumers' privacy.

To create a true one-to-one connection with consumers, brands need to find more effective ways of reaching their audience. They should build out their data insight capabilities and use AI-driven predictive modelling to optimise their media based on multiple data signals, allowing them to improve outcomes by allocating resources in the most efficient way.

Leonard Newnham, Chief Data Scientist, LoopMe

The industry is at a decisive turning point in the protection of consumer data

In response to regulatory and market pressure, Google will be leaving the decision of whether or not to use third-party cookies up to consumers. It remains to be seen how it will implement this change, but if other ecosystems are any indication, this might lead to a vast majority opting out of tracking.

Advertising identifiers have already been phased out from Safari and Firefox, they are shrinking overtime on Chrome as well, and 50% of traffic on the open internet doesn’t have cookies. As a result, advertisers are already experiencing a decrease in cookie availability for their campaigns, while heightened demand is driving up prices. 

The reality is our industry is at a decisive turning point in the protection of consumer data, and this shift began long before Google made the decision to deploy the Privacy Sandbox.

With all the above in mind, advertisers should not view Google’s announcement as an opportunity to postpone their move to solutions that are not exclusively relying on 3rd party identifiers. It’s pointless for our industry to cling to a model that is doomed to disappear. Rather, it’s time for advertisers to invest in alternative solutions which allow them to scale independently of future industry decisions, while prioritising consumer privacy.

 Geoffroy Martin, CEO, Ogury

We’ve seen a decline in the acceptance of cookies

The continuation of third-party cookies will surely bring some relief to the advertising world, but it is not the solution that solves all challenges the industry is still facing. Despite the availability of cookies, we have seen a decline in acceptance of such cookies. A third of global internet users use ad blockers that also have an effect on the tracking capabilities and a substantial number of users have become more privacy aware and don't always accept all cookies when the prompt appears on a site. So even when third-party cookies won't be deprecated completely by Google, there might be a significant drop of available data.

In previous years, the AI-powered shift from personal to predictive marketing has seen advertisers keeping impressive results while not being dependent on granular targeting. The large advertising platforms already offer automated bidding or advanced contextual targeting that ensures high performance even when there is not enough data for personal targeting. It will be key for marketers to take the birds-eye view and compare platforms and channels in real-time to adjust investments continually and ensure high performance to stay successful in the long run.

Christoph Kruse, Marketing Director, MINT

Relying solely on third-party cookies is no longer viable

Even with cookie deprecation no longer on the horizon, the shift towards user consent and privacy is inevitable. To thrive in this rapidly evolving regulatory and technological landscape, publishers and advertisers must remain informed and adaptive; embracing diversified data sources, investing in privacy-compliant technologies, and enhancing user engagement.

Relying solely on third-party cookies is no longer viable. Exploring first-party data and consent-based tracking methods will be crucial, as these approaches align with privacy regulations and help maintain user trust. Investing in privacy-compliant technologies also remains imperative for maintaining data integrity and building sustainable practices. Additionally, fostering direct relationships with users will continue to provide valuable first-party data, enhancing the accuracy and effectiveness of advertising strategies. Taking this proactive approach will help build a more resilient digital advertising ecosystem that benefits users, advertisers, and publishers.

Marçal Serrate, Director of Data Technology, Azerion

Publishers must continue adopting diverse signals beyond third-party cookies

At PubMatic, we are dedicated to enhancing user privacy while ensuring the vitality of the digital advertising ecosystem. Publishers must continue adopting diverse signals beyond third-party cookies. Google's decisions and timelines should not hinder our industry's progress toward a superior supply chain for digital advertising across the open internet. We have seen that alternative signals can provide better outcomes for advertisers and consumers alike and help provide a more sustainable addressability strategy.

We value the collaborative efforts across the industry, including Google's responsiveness to feedback, and are eager to help shape a more effective, privacy-focused digital advertising landscape. We understand that APIs must evolve in light of Google's announcement, and we will continue partnering with our peers to inform the specifics and timing. Throughout this transition, PubMatic's goal remains supporting publishers in maximising revenue while respecting user privacy.

Tim Willcox RVP UK, PubMatic

The move is disappointing for those who have been focusing on building a better internet through real user privacy

Google has managed to waste thousands of hours of the ad industry's time, not to mention millions of dollars, only to back off at the last minute and abandon focusing on user privacy. I am certain bad actors across the ecosystem are thrilled, while all of the companies that have been focusing on building a better internet through real user privacy are disappointed. 

At Kevel, we will continue to enable retailers to build out compelling retail media platforms focused on rich first party data that aren’t reliant on 3rd party cookies or shady privacy practices, even if Google continues to allow them.

James Avery, CEO, Kevel

Over half of the Open Web has already moved away from third-party cookies, and Google's new approach should significantly reduce their use in Chrome

Although Google's announcement has caught us all by surprise, we could not rule out this possibility due to the numerous delays in the implementation agenda. However, this change represents a significant turning point for the ad tech industry, as Google's decision has been largely influenced by market feedback and antitrust policies. This announcement doesn’t substantially alter the current landscape. Over half of the Open Web has already moved away from third-party cookies, and Google's new approach should significantly reduce their use in Chrome, aligning with the ongoing trend.

At Opti Digital, we will continue to invest resources in exploring complementary or alternative addressability solutions to third-party cookies, both for Chrome and other cookie-free environments, as we have already seen positive results on publishers' RPMs.

Magali Quentel-Reme, CEO, Opti Digital

The move indicates the necessity for the industry to diversify its strategies and prioritise privacy-first technologies

While Google’s U-turn on removing cookies from the Chrome browser may come as a relief to some, it clearly indicates the necessity for the industry to diversify its strategies and prioritise privacy-first technologies. Rather than reverting to old practices, we should seize this opportunity to innovate and create a more resilient future for digital advertising.

Yang Han, CTO, StackAdapt

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