Google’s shift from cookie deprecation and what it means for marketers

On July 22, 2024, Google announced that its long-awaited plan to deprecate third-party cookies is being halted in favor of a consent-driven privacy approach. Google’s new proposal – which has yet to be approved by regulators – involves allowing its more than 3 billion Chrome users the ability to set their own web browser privacy settings and adjust them at any time. This deviates from their earlier plan to phase out third-party cookies entirely, which would have entailed more privacy by default for all users.

While some speculated that Google’s cookie deprecation would not proceed, particularly after more than four years of discussion around privacy law reform, others were surprised by this news and are evaluating what it means both for consumers of the web, as well as for marketing activities across the profession.

Online privacy has been an increasingly hot topic in recent years, with consumer groups and governments focusing on how personal data is being used and shared. Recent research confirms that consumers prefer ads that are tailored to their interests, lead to time savings or cost savings, and are brought to their attention at the right moment. More than half of Canadians believe that with all the technology available today, it is unacceptable for a business/organization to send them ads that are not relevant to them. Furthermore, more than 80% of consumers are bothered when an organization sends them irrelevant information. 

Google’s Privacy Sandbox will continue to operate, aimed at finding a suitable alternative to third-party cookies. So, when they shifted gears and announced their intent to roll out a user-managed privacy consent solution instead, it prompted the question: What does this mean for consumers?

For one thing, putting privacy control in the hands of users will give consumers greater control over their privacy settings and it will allow them to customize their data sharing preferences.  However, it is likely that many consumers won’t bother to change their settings.

It is imperative that websites provide clear, simple and easy-to-understand consent mechanisms. Some websites display cookie consent banners that can be complicated to understand or lead to “consent fatigue”, causing users to consent hastily without much consideration. It’s important to note that the rollout of Chrome-level consent settings would not replace the need for each web property to continue collecting its own consent via these banners.

It’s too early to assess the impact on marketers and advertisers. Because some users will have third-party cookies enabled while others won’t, brands will have to make a call on how this would shape their ad-buying strategy. One approach could be to split ad budgets across both groups of users. Traditional retargeting tactics (based on previous web activity) could still be used for cookie-enabled users, while broader contextual advertising (based on webpage content) could be applied to users who disabled cookie tracking. This dual approach may require managing separate ad placement processes.

Alternatively, brands may choose to proceed as if the plan to deprecate cookies had been executed, in that they would apply contextual advertising to all users. While this latter approach may result in less personalized and targeted ads, it would relieve dependency on personal data and past web behavior. This path may be a way forward that is tenable, since other browsers like Safari and Firefox have already deprecated third-party cookies.

This latest news from Google may have lifted a collective sense of urgency felt by organizations, however that shouldn’t mean that adjusting marketing strategies in anticipation of a cookie-less world should be any less of a focus for marketers in the future. The collection of first-party data should continue to be at the forefront of each brand’s data collection strategy. Testing and measurement are also essential practices to embrace when deviating from traditional third-party targeting, whether it’s for contextual targeting methods, A/B testing ad creatives, etc. These habits will help brands build resilience and a mindset of responsible data handling, with user trust at the center.