‘Their plan has failed’: Industry reacts to Google’s cookie u-turn

Last night in a major shift, Google decided to scrap its four-year effort to eliminate cookies from its Chrome browser, following numerous delays and opposition from the advertising industry. 

In a blog post, Google announced that it doesn’t intend to deprecate third party cookies. Instead, it suggests offering users a choice between third-party cookies and other tech, such as Privacy Sandbox, in its browser.

The move to keep cookies comes after several setbacks, with both digital advertisers and regulators expressing concerns about Google's proposed replacements. PMW spoke to a panel of marketing leaders to ascertain how the sudden u-turn will impact marketers plans going into the golden quarter.

"Although the precedent was set by Apple, Safari dominates in a mobile environment where cookies do not exist"

Fern Potter, SVP Strategy and Partnerships, Multilocal, said: “Several of our industry visionaries predicted this announcement was imminent, with the likes of the ICO and CMA influencing Google decision making. In Google’s latest statement, their purpose seems front and centre to give users control over how their data is transacted across the open web, but what impact will this have on the individual, and publishers, when it comes to the monetisation of content, and should a browser have the power to disintermediate publisher and brand experiences?

“Although the precedent was set by Apple, Safari dominates in a mobile environment where cookies do not exist, therefore minimising the impact of user opt-out, creating an opportunity for advertisers to find low-cost, high-value audiences. We can also draw parallels from social media walled gardens such as Facebook disintermediating brand experience and consumer targeting, but in return offering a value exchange for users, above and beyond the features and functionality that a browser can offer.

“Drawing on these observations, there is an absolute need for the technological alternatives we have seen develop over the last few years: audience discoverability (whether from cookies, IDs, context etc), should remain at the centre of how we work towards a consented open web for individuals, and a fair monetisation of audiences and content for publishers.”

“The news provides the industry with a much needed level of certainty on the foreseeable future”

Andrew Turner, MD, Incubeta, said: "I am a little surprised by the u-turn after the level of commitment to sunset and the promising results achieved from the Privacy Sandbox tests carried out earlier this year. With this said, the news provides the industry with a much needed level of certainty on the foreseeable future of the third party cookie, providing a settled tracking method to build measurement and targeting frameworks around. 

“Google has also been clear that the Privacy Sandbox remains central to its approach and will continue to invest in its APIs. I’d actually say that the proposed alternative to provide the option to be tracked by third party cookies elevates choice which will only act in further re-building consumers' trust with how their data is being used online.”

"Building direct customer relationships by creating genuine value that encourages data sharing is indispensable"

Brett Cella, VP of Analytics, Jellyfish, said: “Despite Google's u-turn in deprecating third-party cookies, the shift towards privacy-first digital experiences is still essential - brands still need a robust privacy-centric strategy. First-party data and server-side tagging, shaped by regulations like GDPR and CCPA and growing consumer privacy concerns, are imperative. 

“Apple's App Tracking Transparency in iOS 14.5, with a global opt-in rate of just 24%, underscores the urgency for first-party data strategies - while server-side tagging enhances data control and quality, reducing reliance on outdated technologies. Investing in these methods is necessary to future-proof businesses and enable effective personalised marketing.

“Advertisers must continue to enhance first-party data collection and leverage it for deeper customer relationships. Building direct customer relationships by creating genuine value that encourages data sharing is indispensable. Adopting a cross-browser strategy is non-negotiable, ensuring consistent reach and performance as browsers like Safari and Firefox restrict third-party cookies. The time to act is now for businesses to thrive in a privacy-first world.”

“AI-powered Smart Curation platforms are perfectly positioned as one of the leading solutions”

Filippo Gramigna, co-CEO, Onetag, said: “The 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.”

“To be effective, advertising must align with user interests, and contextual excels at making these meaningful connections.”

Pete Wallace, General Manager UK, GumGum, said: “Google's decision to delay the deprecation of third-party cookies is shortsighted, especially as it relates to privacy. The industry and Google should continue to develop more privacy-first methods of delivering ads, like contextual advertising. In addition to its privacy credentials, AI-powered contextual advertising also delivers much better and more granular insight into consumers and their interests than third-party cookies ever could. To be effective, advertising must align with user interests, and contextual excels at making these meaningful connections.

“Contextual targeting and first-party data have been proven more effective”

David Nelson, Co Founder and CEO Limelight Inc., said: “Despite not deprecating third-party cookies, Google continues to develop new privacy-focused technologies, such as Privacy Sandbox, so we will still see a shift towards more transparent and user-centric practices. The announcement doesn’t come as a massive surprise after the third delay, and users will still have the choice to give consent. 

“At the same time, contextual targeting and first-party data have been proven more effective and one option is to combine the two, but users will value brands who respect their privacy, rather than use their data. SMEs will likely be relieved by the news, and while enterprise investment in privacy-first solutions will inevitably raise some concerns internally, it will still be justified as the industry moves towards more transparent, privacy-oriented processes. This move shows once again how Google dictates the rules of ad tech, and that we should move towards acting independently from Google as much as possible.”

Also published in: Performance Marketing World