Google has doubled down on third-party cookies by abandoning plans to launch an easy opt out from tracking, in a move which is likely to have many marketers secretly breathing a huge sigh of relief despite major questions around consent, transparency, and the future of targeting in digital advertising.
The decision follows the Alphabet company’s announcement last July, when it said that instead of deprecating third-party cookies, it would introduce a new experience in Chrome that let people make “an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time”.
However, in a blog post published late yesterday, Google insisted that “divergent opinions” among the advertising industry, regulators and developers had emerged over moves that would limit third-party cookies.
“We’ve made the decision to maintain our current approach to offering users third-party cookie choice in Chrome, and will not be rolling out a new standalone prompt for third-party cookies. Users can continue to choose the best option for themselves in Chrome’s Privacy and Security Settings.”
In other words, after five years, the ability to opt out will remain buried in the settings of the Chrome browser.
The decision comes as Google parent Alphabet faces legal pressure in the US, where a judge has ruled it maintains illegal monopolies on online advertising technology.
Google rolled out a Privacy Sandbox in 2020 to work on a third-party cookie replacement. The development of the Sandbox is being monitored by the UK competition regulator, which had expressed concerns about barriers to entry by Google’s removal of third-party cookies.
While the industry has been working hard to find alternatives, with many companies waking up to the power of first-party data, one study from digital experience platform Optimizely showed that a whopping 97% of marketing executives said they still felt unprepared for this fundamental shift.
And only last month an Apply Digital study revealed that 99% of businesses are still using third-party tracking cookies to automatically buy ads online, and only 8% of marketers were having no problems with building first-party data systems.
Even so, many in the industry claim change is inevitable.
Innovid head of product strategy Shamim Samadi said: “We’ve long believed that the future of advertising is not dependent on third-party cookies – a belief that stands firm even as timelines shift. The path forward is rooted in transparency, trust, and direct advertiser/publisher relationships.
“Our advice to marketers is to never wait on others to dictate the future. Future-proof your media strategies by leaning into first-party data, exploring interoperable ID solutions, and working with partners who can bring transparency, flexibility, and scale to the table.”
GumGum EVP of global platform strategy and operations Adam Schenkel added: “Google’s decision to keep third-party cookies, now with no opt-out, undermines years of industry progress toward privacy and user control.
“At a time when consumers are more aware than ever of how they’re tracked online, doubling down on cookies sends the wrong message. The Internet doesn’t have a targeting problem; it has a trust problem.
“The solution isn’t clinging to outdated surveillance tactics that exploit personal data; it’s building new models and strategies that respect privacy and meet people in the right moment, with technology like contextual advertising and attention measurement.
“Brands should take this as a wake-up call to diversify their ad strategies now, before audience trust erodes further.”
Acxiom director of platform services EMEA Dimitrios Koromilas concluded: “While some advertisers may breathe a sigh of relief, with more time to adjust to the changing privacy landscape, this change doesn’t signal a return to business as usual.
“Instead, this latest news should serve as a reminder to brands that first-party data strategies are absolutely critical, allowing businesses to deliver more personalised experiences in line with customer expectations and demands.
“First-party data isn’t just accurate, acting as the cornerstone of any brand’s data strategy, but it also provides a holistic view of brands’ customer bases. As the regulatory landscape continues to evolve, investing in first-party data will prepare brands for the long-term, enabling them to deliver more relevant experiences to privacy-conscious customers.
“At the same time, third-party alternatives serve as valuable components. By leveraging these tools at their disposal, brands will be able to stand out from an increasingly competitive crowd.”
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