After years of speculation, Google has announced that it will not be phasing out third-party cookies from its Chrome browser as initially planned. This decision marks a significant shift in Google’s strategy, reflecting the industry’s concerns and resistance to the proposed changes.
A new system for user control
Instead of eliminating third-party cookies, Google will introduce a new system that allows users to make informed choices about their web browsing experience, which they can adjust at any time. This updated approach aims to provide greater transparency and control for users while maintaining support for the ad industry.
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Regulatory engagement and industry reactions
Google is currently engaging with regulators, including the U.K.’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO), to discuss this new direction. Although specific details and timelines are yet to be finalized, the company has made it clear that it will not set a definitive deadline for the deprecation of third-party cookies. Our Propolis Data & Insight Expert, Tony Lamb, expresses his views about this:
“B2B Ignite was only a few weeks ago, and I was on a panel with Paul Collier and Riaz Kanani warning the industry of the impending third party Cookie demise in 2025. And now, much to everyone’s surprise, Google has announced that they will continue to support third party Cookies, and not phase them out next year. This is a great win for the regulators against one of the most powerful organizations, in trying to ensure the interests of all parties are given a balanced outcome.”
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So what does this mean for B2B marketers?
“If I reflect back to our Ignite discussion with Paul Collier and Riaz Kanani warning the industry of the impending third party Cookie demise in 2025, I think a lot of the points we raised are still valid.”
Tony identified 3 key areas shaping the future of digital advertising:
1. Effectiveness of third party cookies today:
As higher value B2B sales may take many months or years, and many individuals within an organization will be involved in the buying decision, the use of third party cookies with a limited lifespan may be questionable today. In addition, Safari and Firefox stopped supporting them over 5 years ago, so market penetration is already reduced.
In addition, in 2024, new regulation came in that meant the use of cookies will no longer be possible by default when a page is opened unless the user explicitly consents (so-called opt-in). As a rule of thumb, the 80% vs 20% ratio is often observed with opt-out, vs opt-in. The second change is the addition of the possibility to consent to the collection of only certain types of data. If a web provider fails to comply with the new rules, they face a fine under the GDPR of up to four percent of their annual turnover. So it’s worth doing some analysis today on the effectiveness of a cookie led strategy.
2. Google’s new experience on Chrome:
In its new strategy, Google is going to provide a “new experience on Chrome” that lets users have an informed choice on their browsing. This is probably to fully comply with the regulation change above, but there is likely to be an impact on numbers of third party cookies available
3. Other alternatives:
Considering the two points above, plus the focus of Google on making its Privacy Sandbox as effective as possible, there’s many new ways of targeting becoming available. Therefore, its strongly advisable to start testing alternative approaches now, as although third party cookies aren’t going to die next year, their availability may significantly reduce.
Investing in Privacy Sandbox
Despite the decision to retain third-party cookies, Google plans to continue investing in its Privacy Sandbox project. This initiative includes privacy-preserving alternatives to third-party cookies and will remain a key part of Google’s strategy moving forward.
The Privacy Sandbox APIs, which are designed to support privacy and ad effectiveness, will still be available and developed further, with additional privacy controls expected to be integrated. Paul Collier, CMO, Funnel Fuel, emphasizes that Google’s latest decision on cookies is not a reversal but rather a strategic shift:
“Understandably, given the CMA (Competition and Markets Authority) and DOJ (Department of Justice) reviews this year, Google has ceded the decision around cookies to the user. This is not a reversal from them, it’s a redirection. We will still move to a cookieless environment, it’ll just materialize in a different way. Those more informed B2B marketing organizations will continue to focus and invest in alternative, better performing options.”
You’re welcome to listen to our podcast with Paul Collier on this topic earlier in the year here.
Mixed reactions from the industry
The industry reaction to Google’s reversal is mixed. While some advertisers and publishers view the decision as a relief, given the previous uncertainties and performance issues with Privacy Sandbox, others remain cautious.
Carol Howley, CMO, Exclaimer, an email signature management software company, shares her insights on what this announcement means for marketers and how it impacts current marketing strategies:
“While this move might ease some immediate concerns, it should not deter us from continuing to innovate and prepare for a future where privacy is paramount. In an era where consumers are increasingly aware of their data privacy, marketers need to embrace strategies that go beyond third-party cookies. This means leveraging first-party data more effectively and exploring diversified tactics such as content marketing and search and paid campaigns to engage customers. Offering users the choice to submit personal information voluntarily can foster trust and lead to higher conversion rates.”
The ongoing development and testing of Privacy Sandbox technologies will be crucial in determining their effectiveness in the absence of third-party cookies. For now, Google’s new plan offers a temporary reprieve for the ad industry while it adjusts to the evolving landscape of online privacy and advertising.
