Google has decided to halt its long-anticipated plan to phase out third-party cookies in its Chrome browser, a move that was expected to significantly impact digital advertising. After years of development, testing, and regulatory scrutiny, Google has opted for a different approach, one that offers users the ability to make an informed choice regarding third-party cookies, rather than outright deprecating them.
The shift was detailed in a recent blog post by Anthony Chavez, Google's Vice President of Privacy Sandbox, who stated that Chrome would now present users with a prompt to decide whether to retain third-party cookies across their web browsing activities. This new direction aligns more closely with Apple's app tracking opt-in model, which, when implemented in 2021, caused a substantial reduction in user tracking and reportedly cost social media platforms nearly $10 billion.
Chavez emphasized that this user-choice model would allow individuals to adjust their settings at any time, providing greater flexibility and control over their privacy. "Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing," he wrote.
The decision comes after significant feedback from advertisers, publishers, and regulators, highlighting the complexities and potential disruptions that the initial plan could cause. Google had initially announced in 2020 its intention to eliminate third-party cookies by early 2022. This timeline was later pushed back to allow the digital advertising industry more time to adapt to the proposed changes under Google's Privacy Sandbox initiative.
The Privacy Sandbox was designed to create a more privacy-conscious method of tracking users for targeted advertising. One of the key proposals within this initiative was the Federated Learning of Cohorts (FLoC), which grouped users based on similar browsing behaviors rather than tracking individual users. Despite these efforts, advertisers and industry stakeholders expressed concerns about the transition, prompting Google to rethink its approach.
In a whitepaper released by the Google Ads team, early tests with Privacy Sandbox technologies demonstrated a 97 percent recovery in returns on investment for Google Display Ads. However, the effectiveness dropped significantly for re-marketing efforts, showing only a 55 percent recovery. These mixed results further underscored the challenges of moving away from third-party cookies.
The UK's Competition and Markets Authority (CMA) responded to Google's revised plan by stating that Chrome would introduce a user-choice prompt for third-party cookies, allowing users to decide whether to retain them. The CMA plans to accept public comments on this proposal over the coming weeks, indicating ongoing regulatory interest in ensuring fair competition and consumer protection in the digital advertising space.
James Rosewell, co-founder of the Movement for an Open Web, an ad industry group that had filed a complaint with the CMA, interpreted Google's change in strategy as an acknowledgment of the challenges posed by the initial plan. "We've long called for Privacy Sandbox to be allowed to compete on its merits," Rosewell said. "If advertisers prefer its approach, and consumers value the alleged privacy benefits, then it will be universally adopted. What wasn't acceptable was for a solution like this to be forced on the market whilst removing any alternative choices."
