Google Third-Party Cookies: Here to Stay?

Tucked, halfway down the page, in the latest blog about Privacy Sandbox was an update from Google that sent some corners of the internet spinning this week: 

Google won’t be “deprecating third-party cookies” in Chrome.  

Instead, after years of announcing – and delaying – the end of third-party cookies, the search giant shared plans to “introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing.”  

What does this mean for brands, their customers, and what’s next? We connected with ad industry experts here at Mod Op, as well as from our clients Lotame and Digital Remedy, to break down the news. Here’s what they had had to say about choice, privacy and what marketers should do to prepare for the future.
 

Elevating Consumer Choice 

Google’s recent announcement of an opt-in approach to third-party cookies marks a significant shift in the digital advertising landscape. Positioned as an “updated approach that elevates user choice,” the plan places the decision to allow or block these cookies directly in consumers’ hands. 

A key question now is how users will respond to this choice. While personalized advertising and free content have historically been popular, it remains uncertain whether consumers will prioritize privacy over convenience. 

“The ‘choice’ is now in the hands of consumers, where it should have been all along,” argues Alex Theriault, Chief Growth Officer at data collaboration platform Lotame. “The overwhelming majority of consumers have indicated they prefer personalized advertising and free access to content so it will be interesting to see how many opt-in to blocking third-party cookies.”

As Shannon Sullivan, EVP, Paid Channel Marketing at Mod Op points out, agencies and advertisers must consider how they’re going to earn that opt-in.  

“While this decision provides choice to the consumer, it is incumbent upon agencies and advertisers to focus on delivering compelling and specific content that speaks to the audience,” said Shannon. “The decision will still allow agencies to hyper target but without the right messaging, we would expect the ‘choice’ to block advertising would increase. When the combination of creative and targeting is optimized, advertising that speaks to the target audience is less intrusive and welcomed.” 

Tomas Madrilejos, Associate Director, Paid Channel Marketing at Mod Op encourages brands to consider the value they’re providing when seeking to earn that opt-in: “With the elevation of consumer choice, the value exchange between brand and consumer will also need to be elevated — be it in premium or exclusive content, thoughtful or timely offers, expert curation of information, etc.” added . “How consumers perceive your brand as a steward of their data will be important. They should know what they’re getting in return.” 

Data Privacy and Security   

Google’s shift to an opt-in model for third-party cookies has far-reaching implications, including a heightened focus on data privacy and security. As consumers become increasingly conscious of how their personal information is handled, brands must prioritize transparency and trust. 

“Obviously, data privacy and security will continue to be paramount to maintaining brand trust with customers,” said Hannah Woodham, VP, Paid Channel Marketing and Operations at Mod Op. “Offering transparency and choice to users comfort in sharing their data with brands while still allowing for the infrastructure to personalize and tailor their experience to advertisers provides a win-win outcome.” 

The move by Google also suggests a proactive response to mounting regulatory pressure surrounding data privacy. As Jeremy Haft, Chief Revenue Officer at digital media company Digital Remedy points out, “Google’s decision to introduce an opt-in model might be a strategic move to preempt stricter regulations.” 

Looking Ahead 

Google’s decision to offer users an opt-in choice may temporarily delay the inevitable decline of third-party cookies, the broader industry trends towards privacy and data regulation remain unchanged. 

“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,” said Chris Hogg, Chief Revenue Officer Lotame. “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.” 

While this announcement may offer some temporary relief for advertisers, it’s crucial to remember that the underlying challenges of the industry remain. As Hannah, points out, “The announcement yesterday from Google still doesn’t provide a lot of detail into the roadmap or next steps for advertisers.” 

Therefore, maintaining a close watch on Google’s future communications is essential for understanding the implications of this decision. Additionally, advertisers should continue to prioritize first-party data collection and explore alternative strategies to reach their target audiences. As Shannon emphasizes, “Agencies and advertisers still will need to look for other and new avenues to engage the target audience to ensure that we stay ahead of future changes from Google and from privacy laws that continue to be more stringent. The focus on first party data is imperative and advertisers should not take their foot off the pedal in that area.” 

In conclusion, while Google’s decision may have altered the timeline, it reinforces the urgent need for advertisers to adapt to a privacy-centric digital ecosystem. Building strong first-party data foundations and exploring alternative data sources remain essential for long-term success.