Google reverses decision on third-party cookies in Chrome

Google has announced a reversal of its decision to eliminate third-party cookies on its Chrome browser. This decision has sparked a mix of reactions from industry experts, marketers and analysts, who were anticipating the substantial changes Google initially proposed.

Andrea Martens, CEO of the Association for Data-Driven Marketing and Advertising (ADMA), welcomed Google's move to grant consumers more control over their online data settings. Martens emphasised that this decision aligns with the transparency requirements stipulated under Australia's proposed privacy reforms.

"Customers expect to have control over how their data is used, and any move to provide better control should be welcomed by marketers," she stated. She highlighted that this move is crucial for building consumer trust in the marketing ecosystem.

However, Martens also addressed the concerns around Google's Privacy Sandbox initiative, which was designed to replace third-party cookies. According to her, the initial proposals had raised alarms among marketers due to their potential negative impact on advertising effectiveness and campaign performance without fully addressing privacy laws.

Martens noted, "While today's announcement may provide some marketers relief, ADMA urges the industry not to be complacent." She reiterated the importance of continuing to develop post-cookie strategies, as consumer expectations and privacy standards are progressively evolving.

Forrester Principal Analyst Xiaofeng Wang mirrored some of these sentiments, stating that Google's decision was not entirely unexpected. According to Forrester’s Marketing Survey 2024, 53% of B2C marketing decision-makers in the Asia-Pacific (APAC) region did not believe that Google would deprecate third-party cookies, a significant increase from 49% in 2023.

Wang noted, "Data deprecation is happening with or without Google's cookie deprecation plans." This perspective is supported by findings that an increasing number of Australian online adults are taking measures to protect their online privacy.

For instance, 42% of Australian internet users regularly clear their browsing histories, 23% deploy ad blockers, and 21% use private or incognito modes. Wang emphasised that mainstream data privacy regulations, such as GDPR and CCPA, as well as APAC-specific regulations like Singapore's PDPA and India's DPDPA 2023, mandate transparency and user consent for third-party cookies. Consequently, 64% of B2C marketing decision-makers in APAC are investing in zero- and first-party data collection, and 62% are experimenting with context-based advertising.

Dimitrios Koromilas, Director of Platform Services for EMEA at Acxiom, provided further insights, pointing out that Google's U-turn, though surprising to some, revealed a broader market unpreparedness for the end of cookies.

Acxiom research earlier this year indicated that 55% of participants had yet to start implementing any solution to address the deprecation of third-party cookies. Koromilas stressed that brands should not become complacent, as first-party data strategies are becoming essential for delivering personalised customer experiences. "Even with Google's latest decision on cookies, first-party data remains the new currency across the enterprise," he noted.

Koromilas welcomed Google’s initiative to empower Chrome users with the choice to restrict third-party cookies, stating that this approach would put users in control of their online experience. He advised brands to remain vigilant, as the impact of this choice cannot yet be quantified. Early research from Google using their Privacy Sandbox yielded mixed results, indicating that the effects on advertising could still be significant.

As the dust settles on Google's latest decision, the consensus among industry leaders and analysts is clear: while Google's move may provide temporary respite, the trajectory toward first-party data and enhanced consumer privacy measures continues to gain momentum. Marketers are encouraged to uphold and advance their strategies for a privacy-first approach to remain competitive in an increasingly data-conscious world.