Google delay’s phase-out of third-party cookies: Impacts and solutions

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Google has once again postponed its plan to phase out third-party cookies in Chrome, moving the expected start date from the end of 2024 to early 2025. This decision, influenced by feedback from regulatory bodies like the UK’s Competition and Markets Authority (CMA), gives businesses more time to adjust to a future where user privacy is a key concern.

This delay is a chance for marketers and businesses to rethink and improve their digital strategies without any rush. Digital advertising is changing, and new methods that respect user privacy while staying effective are needed.

That said, the repeated postponements of the ‘third-party cookie phase out’ poses a challenge for digital marketers. These cookies are a cornerstone of many marketers’ strategies, which they use for tasks like tailoring ads to user behaviour and measuring campaign effectiveness.

In this guide, we will explore in detail the implications of Google’s delayed plan to eliminate third-party cookies, highlighting the impact on tools like Google Ads and the Google Chrome ecosystem.

What Are Third-Party Cookies?

Third-party cookies are placed on your browser by a domain different from the one you’re currently visiting. These cookies track your activity across multiple websites, gathering data on your browsing habits, preferences, and interests.

These tracking cookies provide crucial data for delivering personalized ads tailored to your behaviour and preferences.

The shift to a cookie-less future doesn’t mean all cookies are disappearing. There are different types of cookies, each used for various purposes to collect distinct types of data.

First-party cookies are created and used by the site you’re visiting to improve your browsing experience, such as remembering your login details or what’s in your shopping cart.

Google third-party cookies mainly benefit advertisers and data brokers, rather than users. These cookies collect third-party data, which helps in creating targeted advertising campaigns.

On the other hand, first-party cookies collect first-party data used directly by the website you’re visiting to enhance your experience.

There’s also zero-party data, which isn’t collected through cookies.

You willingly share this information with companies, like survey responses, account settings, or communication preferences. Zero-party data is highly valuable because it’s provided voluntarily and doesn’t invade privacy, making it the highest-quality user data for businesses to understand their customers better.

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The Role of Google Third-Party Cookies

Google third-party cookies have been essential in the world of digital advertising. Here’s a simple breakdown of their primary roles:

Tracking User Behaviour

Third-party cookies keep track of what you do across different websites. They collect information about your online preferences, interests, and activities over time. This data helps create a detailed profile of you, which can lead to more personalized online experiences. However, this tracking is often done without your consent and can result in a highly identifiable profile.

Ad Targeting

Using data from third-party cookies, advertisers can show you ads that closely match your interests. This means you’re more likely to see ads relevant to what you like or have looked at before, such as your purchase history. This targeted advertising approach increases your chances of engaging with the ads.

Analytics

Third-party cookies also help with analytics. They provide valuable insights into how people behave online and the latest trends. This information is crucial for businesses as it helps them make smarter decisions, improve their websites, enhance user experiences, and fine-tune their marketing strategies and product development to better serve their audience.

A Cookie-less Future

In January 2020, Google announced a major plan to eliminate third-party cookies in Chrome by 2022. However, to better meet privacy needs, they adjusted the timeline to phase out these cookies by the end of 2025 completely. Starting January 4, 2024, Google began this process for 1% of users, with plans to extend it to all Chrome users by the third quarter of the year.

This move by Google marks a significant shift towards a more privacy-focused internet. Google isn’t alone in this effort. Other major browsers like Safari, Firefox, and Brave blocked third-party cookies years ago.

However, Google’s influence is much more significant, impacting nearly 3.5 billion users. Other browsers like Microsoft Edge and Opera are also working to enhance user privacy by blocking cookies and introducing other features.

Why is Google Removing Cookies?

Google is removing third-party cookies from Chrome to address growing concerns about online privacy and data protection. While third-party cookies have been around for a long time, they come with several drawbacks, including privacy issues.

The decision aims to create a more privacy-focused internet, ensuring more transparency and user consent in digital advertising.

This move has been planned for a while, but new laws like the Digital Markets Act (DMA), which targets big companies like Google, have likely sped up the process. The DMA identifies Google as a key player in digital platforms and markets, pushing them to make these changes faster.

What Does It Mean to Remove Cookies?

When cookies are used, small text files are saved in your browser to collect data based on your activity. Blocking cookies stops these files from being set, preventing the collection of your data across different websites without your explicit consent.

This change disrupts the traditional methods of online tracking and advertising. First-party cookies, which help improve your experience on a website by keeping you logged in or remembering what’s in your shopping cart, will still work. However, removing Google third-party cookies helps address privacy concerns and ensures your data is not collected without your permission.

Alternatives to Third-Party Cookies

As we move towards a future without Google third-party cookies, innovative solutions are emerging to ensure that advertising can still be personalized and effective.

First-Party Data: It is based on relying more on data collected directly from websites and customer interactions.

Zero-Party Data: It is the voluntary information provided by users, like survey responses and preferences.

Google’s Privacy Sandbox: Launched in 2019, it is a set of technologies designed to replace third-party cookies with more privacy-conscious ways.

These alternatives aim to balance privacy with the ability to track and measure ad performance, ensuring that businesses can comply with regulations while continuing to operate successfully.

The Impact on Google Ads

With Google phasing out third-party cookies, Google Ads is about to undergo a substantial change. In the past, Google Ads used third-party cookie data to target specific users accurately. Now, advertisers who rely on this detailed targeting will need to find new strategies.

Shift to First-Party Data and Privacy Sandbox: Advertisers will rely more on data collected directly from their websites and customer interactions. Google’s Privacy Sandbox, including initiatives like Topics and contextual advertising, will become essential for targeting based on general interests.
Embrace Consent Mode: Using Google’s Consent Mode helps advertisers meet privacy requirements and continue accessing Google services. This tool adjusts data collection based on user consent, ensuring compliance, and maintaining trust with users while gathering necessary analytics and conversion data.

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The Impact of Blocking Third-Party Cookies on Google Chrome

Blocking third-party cookies in Google Chrome is unlikely to drive users away, as demonstrated by Safari and Firefox, which have implemented similar measures without experiencing user loss.

Chrome, with its larger user base, is part of an industry-wide shift towards a privacy-focused internet. This change means data collection methods will evolve, but users won’t notice much difference in their browsing experience. It will matter most for businesses, marketers, and ad tech professionals.

For users, it will enhance privacy without affecting usability. This shift is part of a broader effort to create a more secure digital environment that respects user preferences.