Why Google’s Cookie-Less Future Is on (Temporary) Hold

Both Google and Apple continue to go down parallel paths as they try to build brands around consumer privacy. But Google continues to face headwinds.  

This reality was underlined recently when Google announced that it is delaying its self-imposed deadline for doing away with third-party cookies on Google Chrome, the world’s most popular browser. Advertisers rely on third-party cookies to track user behavior across the web and serve up targeted ads. Google had originally said it was going to stop third-party cookie tracking by 2022 in order to protect consumer privacy. Now Google has changed the time frame to late 2024.  

This is the second time Google has delayed the roll-out since the company began to implement cookie controls in 2019.  

By contrast, Apple phased out cookies from the Apple Safari browser in 2020 without delay or drama. Then, in 2021, Apple really shook up the ad tech world by imposing a privacy control that gives users of Apple’s operating system the choice of permitting or denying apps to track their behavior on the web. A majority of users opted out of having their behavior tracked.  

Why Google Is Facing Delays 

Why is Google facing delays? The answer is simple: Google operates a multi-billion dollar digital advertising business based on how people behave on the web. Apple does not. Google is the largest provider of online ads online, followed by Meta and Amazon. So, everything Google does must be assessed in context of Google’s Number One market share. 

When Google initiates changes such as deprecating cookies, government regulators around the world scrutinize Google’s actions against their possible impact on the company’s already dominant position in online advertising. To wit: will the removal of third-party cookies diminish competition? In 2021, scrutiny from U.K. regulators was a big reason why Google delayed its cookie-killing initiative. 

By contrast, Apple is not a serious contender in the online advertising market, and so its privacy initiatives proceed on Apple’s own timetable. 

Because advertising revenue is Google’s growth engine, the company also needs to work with advertisers to provide an alternative to third-party cookie tracking – or else lose their business. Apple can do what it wants and not worry about the impact on advertisers, to the chagrin of Meta, whose ad business has been shaken up by Apple’s privacy controls. 

Google has been experimenting with alternatives to third-party cookie tracking through the Google Privacy Sandbox. And it’s taking time for Google to test and learn. As Google noted in a blog post announcing its latest delay, “The most consistent feedback we’ve received is the need for more time to evaluate and test the new Privacy Sandbox technologies before deprecating third-party cookies in Chrome.” 

For instance, in January 2021, Google said it had developed an open-source program where businesses, using on-device machine learning, could group people based on their common browsing behavior as an alternative to third-party cookies. This was referred to as FLoC (Federated Learning of Cohorts). But FloCs did not seem to work because Google replaced FloCs with Topics, which personalize ads based on subjects that users browse on the web (I have more to say about Topics here).  

Reactions from the Advertising Industry 

The announcement about delaying cookie deprecation to 2024 has caused a bit of an eye roll and annoyance among the ad tech community that had been scrambling to prepare for a cookie-less future in Google’s world. 

Mark Pearlstein, chief revenue officer of Permutive, a next-generation publisher and advertising platform, told Advertising Age, “This is about Google finding a way to balance how they maximize revenue while minimizing privacy implications. The challenge is they are four years into this initiative, so it’s logical to wonder how high a priority this really is for them.” 

Scott Messer, SVP of media at Leaf Group, told AdExchanger, “It’s continuing purgatory. So, it depends how you feel about purgatory.” 

Why purgatory? Because advertisers don’t like having a proven model for success – ad targeting – disrupted. So why is Google (and Apple for that matter) doing this? Because both Google and Apple are getting out in front (or trying to) of the changing consumer privacy landscape.  

We’re living in a more privacy-centric world now, and Google wants to apply privacy controls before someone makes them do so. As I blogged here, legislators around the world are putting more pressure on businesses everywhere to protect consumer privacy, as we have seen with the advent of General Data Protection Regulation (GDPR) in Europe and California Consumer Privacy Act (CCPA) in the United States. This legislation is all about giving consumers more control over their data. 

In addition, consumers are becoming more aware of how their data is used in advertising online. Google is at the center of this discussion because digital advertising is a multi-billion dollar industry. Google needs to protect its interests – it is the largest online ad platform in the world – which is why Google is being so proactive about ushering in new tools for advertisers with the onus of regulation looming.  

What Advertisers Should Do 

Brands need to be focused on decreasing their reliance on any third-party data providers and building their own first-party data as the momentum behind privacy laws continues to accelerate and erode the marketplace.  

In fact, many are already. Travis Clinger, senior VP of addressability and ecosystem at marketing platform LiveRamp, told Advertising Age, “Regardless of the timeline Google has set, 45%-plus of the internet is already cookieless. Mobile in-app is cookieless, and CTV is cookieless. The time is now for publishers and marketers to control their destiny and transition away from cookie-based identity.” 

To deliver a first-party-driven approach brands must:  

• Build a foundational customer data pipeline for your business (real-time, channel independent, trusted).  
• Collect every first-party interaction with consent and rely on more accurate data.  
• Integrate data into the marketing and analytics tools to deliver customer-first experiences.  

We recommend that brands do these things today:  

• Build a solid first-party data core. Capture and integrate durable first-party ID’s via server-side tools.  Enable collection and matching across all owned online/offline systems and partner platforms.  
• Adapt Digital Media and Measurement Strategies to reduce dependency on cookie-based targeting and streamline analytics across data sources.  
• Develop a strong digital value exchange. Enhance digital resources to provide the most personalized experience as possible.  Current and future customers will be more likely to opt into exchanging data through a strong value exchange.  

If you work with a partner to manage your advertising and personalization approaches, make sure you understand your partner’s strategy for making the transition. Work closely with them. At IDX, we collaborate with our clients to manage content (both advertising and organic) and protect consumer privacy amid this rapidly changing environment. We also closely follow privacy legislation. We subject ourselves to third-party audits for data privacy and security that go far beyond what you will see from other communications firms. We actively deploy solutions to help our clients maximize engagement with their audience, while respecting a newfound demand for privacy. 

Contact IDX  

To learn how you can succeed in a privacy-first world, learn more about our Reporting & Analytics services here or  contact us here. We know the terrain and how to help.  

Related IDX Content 

“How Is Google Following Apple’s Consumer Privacy Push?” Paul Headley, March 8, 2022. 

“How and Why Google Is Embracing Consumer Privacy,” Paul Headley, February 15, 2022.  

“Potential Implications of Google’s War Against Third-Party Cookies,” Paul Headley, IDX, April 13, 2021. 

“Important Steps When Considering a Cookie Manager,” Stu White, IDX, December 9, 2020.  

“Why Toxic Cookies Are Killing Your Reputation,” David Corchado, IDX, November 18, 2020.  

“The Problem with Privacy,” David Corchado, IDX, July 28, 2020. 

“Why the CCPA Is a Challenge for Businesses,” David Corchado, January 21, 2020. 

“Five Questions to Ask about Respecting Consumer Privacy,” David Corchado, December 4, 2019. 

“Vueling Airlines Cookie Fine Demonstrates the Costs and Complications of GDPR Compliance,” David Corchado, October 30, 2019. 

“What Is the California Consumer Privacy Act (CCPA)?” David Corchado, September 3, 2019. 

“Keeping up with GDPR, PECR and the evolving privacy and data protection landscape,” David Corchado, August 28, 2019.