Google’s decision to delay the phase-out of third-party cookies in Chrome until 2024 came as a surprise. Previously, the search giant expected to stop cookies in 2022, which was further extended. Basically, the search giant wants more time to test its Privacy Sandbox, which is said to be an alternative mechanism for targeted advertising.
Cookies, those tiny pieces of code that websites use to track user behaviour, have recently come under scrutiny over privacy concerns.
The intention is to slowly migrate from third-party cookies to Sandbox privacy. Google is treading carefully as it has come under scrutiny from US and UK lawmakers over its dominance of the ad tech industry. The search giant is facing a second lawsuit in the UK in this regard.
Industry stakeholders have agreed that the Google Privacy Sandbox needs a longer than usual testing period. Developers now have access to a trial version of the Privacy Sandbox API; this month (August) the trial will be extended to tens of thousands of people worldwide.
“Google continues to delay the end of cookie support because, despite several rounds of warnings, the digital marketing industry is still dependent on the data it provides to target and personalize campaigns. But a cookie-free future is inevitable, and this latest delay gives marketers another chance to consider what that future will look like,” Eric Vreeland, vice president of marketing at People Data Labs, told The Drum.
According to Tonic Worldwide founder and CEO Chetan Asher, Google realizes that unless a strong replacement solution is in place, it will hurt not only their own ad revenue, but the entire publishing ecosystem. “There are no easy solutions given that even Floc was not perfect; Google definitely needs to take the time to test, evaluate and roll out a solution that will work for everyone,” he adds.
While this is good news for marketers and businesses, consumers are somewhat at a loss as to what lies ahead.
“Eventually, brand advertising will need to build its own customer data platforms because they will need to target customers who are not dependent on cookies. Right now, brands have an easy way to target their customers thanks to cookies. They are able to track what the consumer is looking at,” says Lloyd Mathias, Angel Investor & Business Strategist.
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