Reading Time: 3 minutesIn an interesting turn of events, Google has backtracked on its plans to scrap third party cookie depreciation after delaying it multiple times since 2020.
Privacy Sandbox VP Anthony Chavez announced the news on July 22nd in a blog post. So how are they going to address privacy concerns that they set out to resolve with this initiative? This is what Chavez had to say:
“We are proposing an updated approach that elevates user choice. 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.”
Why this sudden change of heart? Simply put, the impact would have been too huge on advertisers.
The Story Behind this Change
It almost looked like the time for 3PCD was finally right this year, especially when Google started this year by restricting third-party cookies for 1% of Chrome users. But behind the scenes, unsatisfactory results and industry backlash were continuing to create friction to this move.
Based on a self-conducted test, Google estimated that 3PCD would decrease programmatic publisher revenue on Ad Manager by up to 34% and on AdSense by 21%.
There were various complaints from different stakeholders as well. For instance, the Competition and Markets Authority advised against 3PCD in February. According to the CMA, 3PCD would likely result in “an abuse of a dominant position.”
A report by the cloud company Twilio also showed that 53% of marketers still relied on third-party data, and that one in three brands claimed they weren’t ready for 3PCD.
Considering the uproar against 3PCD, it was probably a smart business move on Alphabet Inc.’s part to not want to upset advertisers who hold the most share of its revenue (77.8%).
The Future: A New Browsing Experience With Customizable Privacy Options
According to the announcement on July 22nd, Google will now implement opt-in third-party tracking in place of 3PCD. Users will be able to choose whether their browsing info is tracked and shared “at any time.”
This is similar to what Apple did, following the iOS 14.5 release. It was lauded for giving the choice back to the consumers, and until April 2025, only 25% of its users had accepted voluntary app tracking.
With privacy concerns being a huge concern for many users today, Google Chrome may have a similar fate. This means that despite 3PCD not happening, the pool for third-party data collection is likely to decline.
Chavez also mentions that the company will “introduce IP Protection into Chrome’s Incognito mode” to anonymize IP addresses. This will prevent third-party data tracking in incognito mode completely, which is currently possible.
Ultimately, advertisers have to realize that relying on third-party data alone is not an option. The goal should be to integrate third-party cookie alternatives like CHIPS and Topics API along with third-party cookie data to not be caught off-guard if many users opt-out of tracking.
Furthermore, Chaves clarified that Google is advancing the Privacy Sandbox. That means major overhauls to media buying, audience data, and Chrome measurements, regardless of 3PCD.
What Does it All Mean for Your Brand?
Firstly, opting for third-party cookie alternatives like the ones we discuss here is a must-have. You should also be looking at ways to gather your own website data and analyze it reliably to target customers who fit your ideal client profile.
Plus, it doesn’t have to be all gloom and doom. There’s some evidence to suggest that ads personalized based on first-party data (like cart abandonment) can convert better.
Hyper-personalized offers can also help you spend up to 50% less to acquire customers and earn 40% more than your average competition.
You’ll need wins like these to reduce the expected losses as more Chrome users reject third-party tracking and activate IP Protection.
To Sum Up
Although third-party cookies aren’t going away, advertisers will likely have a smaller pool of third-party data at their disposal.
There’s more corroboration to this with Chavez highlighting Google’s plans to continue “investing in Sandbox API.” Ultimately, Privacy Sandbox is still moving forward, and that means massive changes will happen to audience data, media buying, and measurement in Chrome.
When the dust settles, we may awaken to the realization that Google did not announce that third-party cookies will be sticking around in the same capacity. Instead, they announced the ways in which third-party cookies will be made unavailable.
Putting cookie choices in front of users may have a similar net effect as top-down deprecation, and could even achieve that sooner. This means that on part of the advertisers, there’s still work to be done to prepare for a cookieless environment.
At Vizion Interactive, we have the expertise, experience, and enthusiasm to get results and keep clients happy! Learn more about how our status as a Google Partner, along with our PPC Management, Google Shopping Ads, Social Media Advertising, Amazon Advertising, and other Paid Media services can increase sales and boost your ROI. But don’t just take our word for it, check out what our clients have to say, along with our case studies.
