What Google’s Cookie Reversal Policy Means for You

For many months now, a major focus for marketers has been preparing to adapt to a cookie-less future, with third-party cookies on their way out in favor of more privacy-centered options for data collection. Now, the Google Privacy Sandbox, positioned to be the big step forward in privacy and data, is over before it started.

 

On July 22, Google announced it was reversing its planned changes. “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, and they’d be able to adjust that choice at any time. We’re discussing this new path with regulators, and will engage with the industry as we roll this out,” Google said in its blog post. The details of this new approach, as well as the future of the Privacy Sandbox and related tools, will be announced later.

 

What’s Behind the Cookies Shift?

In its announcement, Google didn’t give details on its decision to reverse course. According to sources in Ad Age, however, a lack of commitment from Google led to lackluster performance for the Privacy Sandbox. In turn, that underperformance put the brakes on the full rollout. Even Google’s own demand-side platform, Display & Video 360 (DV360), didn’t enable testing in the Privacy Sandbox; in fact, marketers reported that alternate cookie-less testing options were more accessible than Google’s option. Ad Age also notes that Google’s ads side was kept siloed away from the Privacy Sandbox, increasing the difficulties in developing an integrated, effective alternative to cookies.

 

Instead of a broad-ranging solution, Google is (for now) giving users the power to control their cookies. Chrome users can simply customize their cookie preferences in-browser. While many privacy-conscious users will, in fact, choose to decline cookies wherever possible, the support required for both cookies and non-cookie approaches could make things more complicated, both from a tech perspective and a marketing one.

 

One unexpected ripple effect might actually be the lowering of some paywalls. “Without third-party cookies, website owners were struggling to figure out how to monetise their audiences and this is one of the reasons there’s been such an increase in gated or paywalled content in recent years,” Steve Silvers, executive vice president of global creative, media and ecosystem at Kantar, told CNBC. He suggested that the retention of cookies might drive some publishers to reduce paywalled content, since it can be monetized through cookie-driven advertising after all rather than requiring subscribers to profit.

 

Continuing to Focus on Privacy

 Despite this shift, privacy remains a top concern for both customers and companies. Like other tech companies serving global audiences, Google must comply with international privacy regulations, including stricter ones like those of the EU. Beyond laws, the preference for privacy continues to grow among consumers. 68% of global consumers say they’re concerned about data privacy online, and even more admit that they have deleted an app or chose not to make a purchase because of privacy concerns.

 

Although cookies are still technically supported, marketing professionals expect a noticeable pullback – and they’re planning accordingly.

 

 “There are scenarios where we might see 80%, or even 90% drop-off in cookie volume, in which case is pretty much the same as them being removed altogether, and we’re going to need robust alternatives,” MiQ global chief strategy officer John Goulding told Ad Age.

 

For the time being, your marketing strategy can probably continue in the general direction you were already headed; that is, towards less reliance on cookies. Even with this reversal from Google, cookies will never be the same, and it’s a good idea to have plans in place. As a bonus, having a reputation for being privacy-focused can enhance your brand and boost customer loyalty. After all, customers value their privacy, and they appreciate brands that value it, too.

 

Although cookies may not be completely going away, it’s still important to develop a more privacy-focused approach to data collection, both to improve your own targeting of ad dollars and to highlight to customers that you care about their privacy choices. An approach that balances privacy and personalization is key to standing out in this fast-changing marketing landscape.