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Google Has Proposed Keeping Third-Party (3P) Cookies Alive—What It Means for Advertisers

What’s next?

Cookie deprecation is still likely to occur, just more slowly. According to the blog post, it appears Google will make it easier for Chrome users to make choices about how their activity is being tracked. This will likely result in further, voluntary 3P cookie blocking from users which will continue to emphasize the importance of non-cookie-reliant tools. Because of this, Google is simultaneously emphasizing the importance of its Privacy Sandbox.

Privacy Sandbox is here to stay. Google cites that testing of Privacy Sandbox, its framework for privacy-compliant user-tracking technologies, has shown positive results in capturing user signals without 3P cookies:

Scale: 89% spend recovery in Google Display Ads and 86% in Display & Video 360
- I.e., portion of usual budget that advertisers were able to spend without 3P cookies enabled
Remarketing: 55% spend recovery in Google Ads and 49% in Display & Video 360, with better results for campaigns combining remarketing with other strategies
- I.e., portion of usual remarketing budget that advertisers were able to spend without 3P cookies enabled
ROI: 97% conversions per dollar (CPD) recovery in Google Display Ads and 95% in Display & Video 360
- I.e., portion of ROI that remained in-tact without 3P cookies enabled

Google is likely going to continue pushing the adoption of Privacy Sandbox even with 3P cookies sticking around.

Why the change of heart from Google?

It’s not out of character for Google to reverse course on a product development decision. While it didn’t provide exact reasons for the change, Google alluded to feedback from broader regulatory and digital marketing communities as influences. Beyond that, we have a few inclinations as to what was behind the change.

Potential Exposure to Regulatory Issues and Antitrust Litigation: In April, the UK’s Competition and Markets Authority (CMA), the most active regulatory body reviewing Privacy Sandbox, expressed concerns about Google’s advantageous market position in a post-cookie world.

The organization hinted at potential restrictions on Google’s ability to hide the fact that users are still being tracked and collect mass amounts of first-party data from its advertisers. Keeping cookies alive while continuing to develop the Privacy Sandbox may help them avoid such challenges.

Increased Criticism from Advertisers and Marketers: Since it first announced its plan to phase out 3P cookies in 2020, advertisers and marketers have disapproved, claiming Google is establishing an unfair advantage for its advertising business by blocking 3P measurement technology. Perhaps Google is also looking to maintain goodwill in its most profitable industry by not creating additional competitive barriers.

What does this mean for advertisers?

Digital marketers should continue to adapt to a cookie-less future. Although 3P cookies may not be eliminated from Chrome as planned, the evolving landscape of data privacy will empower users with greater control over the collection and handling of their data.

This means it’s essential for brands to continue developing robust measurement strategies that aren’t reliant on 3P cookies. Our recommendation remains unchanged from our previous memo on 3P cookie deprecation on Chrome: