News Analysis
The Gist
- Privacy urgency. Google’s decision reinforces the need for privacy-centric strategies and technologies.
- First-party advantage. Brands investing in first-party data gain a competitive edge in personalized marketing.
- Constant vigilance. Marketers must continuously update strategies to align with privacy laws and customer preferences.
“As the World Turns” was a soap opera that has long been off the TV airwaves, but its title aptly describes the drama marketers are experiencing behind Google’s stunning decision to pause its phase out of third-party cookies from the Chrome web browser.
Marketing executives face renewed questions regarding maintaining online browsing privacy while executing a targeted advertising strategy that supports a positive customer experience.
Many executives from varying parts of the advertising and marketing world sent me emails with their thoughts on what the impact of Google’s latest decision will mean for martech innovation and for understanding customer wants through their online behavior.
Don’t Call It a Rollback
One of the immediate responses from executives is that Google’s reversal does not signal a complete rollback from eliminating third-party cookies. Duncan Smith, global CPO at Journey Further, felt marketers “should view this as a temporary reprieve rather than a reason to abandon privacy-first strategies.
The quality and reach of third-party cookie data continue to degrade, especially in our multi-device world, making it an increasingly unreliable foundation for media strategies. While cookies remain a tool in the arsenal, brands should prioritize first-party data collection and invest in cookieless measurement solutions to future-proof their analytics and ensure they can reach premium, representative audiences across all browsers.”
Kristen Habacht, chief revenue officer at Typeform shared a similar perspective. “Google’s threat to eliminate cookies ended up empty — but that doesn’t mean businesses should halt progress,“ Habacht explained. “Companies would do well to continue the evolution toward using privacy-centric strategies and technologies that work for both the company and the customer, and that could provide a leg up on the competition. Data collection shouldn’t be a one-way street that leads to an incomplete picture — you might be surprised just how wrong your cookie-based assumptions are.”
Executives see Google’s decision as a reminder that achieving universal solutions to industry cookie usage would not be a slam dunk, at least not at first.
“Well, that was the biggest tease in the history of digital marketing,” Smith noted. “Google's decision does reflect the complexity of balancing privacy concerns with the needs of advertisers and publishers. While it provides some short-term stability for businesses relying on cookie-based technologies, it doesn't address the underlying shift towards a more privacy-centric web. This move buys the industry more time, but it's crucial to remember that other major browsers like Safari and Firefox still block third-party cookies by default.”
Related Article: First-Party Data: Key Benefits and Challenges for Marketers
The Chance for Innovative Ad Measurement Remains
Though some felt third-party cookie usage would be relatively harmless, many felt Google’s decision reinforces an urgency to develop alternatives.
Tim Glomb, VP of content, product marketing and AI for Wunderkind, believes brands must continue to innovate or face a significant cost disadvantage. Glomb explained, “If Google does continue with third-party cookies, the brands that continue to rely on them will struggle to fund that ad channel as CPMs continue to increase, especially come election year which drives costs even higher.
"This will open doors to the brands that have invested heavily in first-party data, which can power hyper-personalized messaging on owned channels like email and SMS and are proven to beat banner ads or third-party advertising by well over 100%. There was never a question if first-party data was better than third-party cookies, it was just a question of who cared to build direct relationships with their consumers versus snooping, tracking and relying on advertising to drive short-term revenue.”
Many organizations saw the decision as immaterial for their plans to launch tools addressing the development. Lou Mastria, CEO and president of the Digital Advertising Alliance, stated that the Google announcement “firmly validates the DAA's decision to deploy a new WebChoices 2.0 tool that supports opt-outs across both cookies and emerging technologies, such as probabilistic IDs, IP-based targeting and hashed emails or phone numbers…. By focusing on a 'cookies and beyond' approach, the DAA has ensured that brands, publishers, agencies and ad tech providers can use the current and future technologies that work best for them and their customers."
Some also feel the pause gave Google an opportunity to adjust its own advertising technologies. Drew Stein, CEO and founder of Audigent, named Google’s Privacy Sandbox as a prime example. He expressed concern over how Google’s third-party cookie strategy treats the advertising industry as a whole.
“The announcement amounts to not much more than a sleight of hand — Google is not trying to put the cat back in the bag…if anything, Google is the cat and the industry continues to be its big ball of yarn… Google needs to meaningfully engage in fixing Privacy Sandbox instead of toying with cookie deprecation once again to distract from the main challenges created by its proposed sea changes in Chrome.”
Related Article: Google Privacy Sandbox and What Brands Need to Know
Customers Care About Browser Cookies but Are Confused About Actions to Take
In an earlier post I explained how the removal of third-party cookies would impact many marketing strategies. Many executives feel customer behavior — opting out of cookies — will continue, driving marketers to continue seeking alternative cookieless measurement.
Kevin Branscum, marketing senior director at Typeform, shared, “Even if Google cancels the cookie-pocalypse — end users will still choose to prioritize their privacy and block cookies as they browse. Full cookie deprecation might be canceled, but Google announced that users will be able to opt out of cookie tracking for their entire browsing experience instead of having to do it site-by-site. This will be equally challenging for marketers and advertisers."
The potential of cookie opt-ins is encouraging executives to seek customer feedback through surveys, especially if customers express concerns about invasive measurement practices.
Michele Fitzpatrick, VP of strategy at Marigold, commented on the company’s latest Consumer Trends Index, which indicated that 59% of surveyed consumers view indirect tracking tools as “creepy.” “Cookies have been an important and useful tool in a marketer’s toolbox,” Fitzpatrick explained, “but data carefully collected and curated directly from a consumer in a transparent manner is a more powerful tool. In contrast [to the latest CTI results], first-party or zero-party data fosters stronger connections with consumers. Authentic engagement tactics that utilize zero-party data can better prepare marketers for policy changes and result in better consumer-brand relationships, with or without cookies.”
Other surveys also indicate customers are becoming more savvy about their online browsing and advertising — and yet not sure what steps to take when they desire to opt. All About Cookies surveyed 1,000 adults, discovering that less than half of those surveyed knew what cookies were. They also discovered that although 40% of people said they blindly accept internet cookies, nearly 1 in 4 didn't know how to clear and disable them. The survey suggests education on managing internet cookies is needed and indicates a need for more easily identifiable browsing safety mechanisms for consumers.
Related Article: Mastering Marketing Measurement in a Post-Cookie Era
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Be Cookie Vigilant
Google's decision not to pause third-party cookies in Chrome allows cookies to continue playing a crucial role in ad targeting. However, marketers face an "X factor" regarding which new technologies will emerge now that a deadline no longer exists.
No matter what technological stance solution providers and industry experts take, marketers must remain vigilant in updating their strategies regarding marketing data, emerging customer identifiers and privacy legislation. This ensures that campaign decisions best reflect the online experiences customers want.
