Google reverses its plan to phase out third-party cookies and introduces new privacy controls in Chrome, aiming to balance privacy with ad effectiveness.

Google Reverses on Third-Party Cookies

In a surprising turn of events, Google has announced it will no longer pursue its long-standing goal of eliminating third-party cookies in Chrome. Instead, the tech giant will introduce a new system that allows users to manage their privacy preferences with a one-time prompt across Google’s browsing experiences—because, apparently, even Google knows that cookies are hard to resist.

Background on Third-Party Cookies

Third-party cookies have been essential in affiliate marketing, enabling affiliate marketers to track ad conversions. However, these cookies have been criticized for their lack of user consent and privacy concerns. Other browsers, such as Mozilla Firefox and Safari, have already blocked third-party cookies to enhance user privacy. Google’s Chrome, commanding over 90% of the search market, had promised to phase out these cookies by 2022 but has repeatedly extended the timeline due to industry readiness and regulatory concerns.

The New Approach

Anthony Chavez, Google’s Vice President of Privacy Sandbox, explained the rationale behind this shift. “We are proposing an updated approach that elevates user choice,” Chavez wrote in a blog post. Instead of deprecating third-party cookies, Google will introduce a new user experience in Chrome that allows people to make informed choices about their privacy settings, which can be adjusted at any time.

Privacy Sandbox: A Mixed Bag

Google’s Privacy Sandbox, a suite of proposed alternatives to third-party cookies, has faced scrutiny and criticism. The Privacy Sandbox is designed to protect user privacy while keeping ads effective. However, regulators and industry experts worry that it might funnel more ad spend into Google’s ecosystem, skewing the competition. The UK’s Competition and Markets Authority (CMA) has been particularly vocal, flagging numerous concerns and asserting the need for ongoing scrutiny of Google’s proposals.
Despite these challenges, Google has conducted extensive testing of its Privacy Sandbox APIs, including the Topics API, Protected Audience API, and Attribution Reporting API. Recent tests indicate promising results, with Google Ads recovering 89% of ad spend in Google Display Ads and 86% in Display & Video 360 (DV360) without third-party cookies. For performance campaigns focused on conversions, the recovery rates were even higher.

Industry Reactions

The advertising and publishing industries have been worried about the impact of the Privacy Sandbox on their operations. A report by the IAB Tech Lab indicated that the transition from third-party cookies to the Privacy Sandbox could significantly hinder digital advertising. Similarly, ad tech firm Criteo found that publisher revenues could decrease by 60% if third-party cookies were deprecated in favor of the Privacy Sandbox in its current state.

Moving Forward

Google’s revised plan aims to balance user privacy with advertising effectiveness, addressing both regulatory and industry concerns. The new user privacy controls in Chrome are designed to give users more control over their data while maintaining ad performance.

As Google continues to refine its Privacy Sandbox technologies and collaborate with regulators, it’s clear that the digital advertising landscape will continue to evolve. Publishers and advertisers should focus on first-party data and directly engage with their audience to adapt to these shifts.

Conclusion

Google’s decision to keep third-party cookies while introducing enhanced privacy controls marks a big shift in strategy. By emphasizing user choice and continuing to develop the Privacy Sandbox, Google aims to navigate the tricky landscape of privacy and advertising. The industry will need to adapt, leveraging first-party data and new technologies to stay effective. After all, in digital advertising and affiliate marketing, staying ahead means keeping your cookies—and your strategies—crisp and fresh!

If you would like to know more about third-party cookies and how to keep your program successful, talk to an expert today!

full service affiliate management services - trust the experts
Ashley Klotz

Ashley Klotz

With 12+ years in marketing across a variety of verticals, Ashley brings a robust viewpoint to the creative side of affiliate and partnership marketing. With a knack for writing and her people skills, content marketing, and customer retention have been at the forefront of her success.