Third-Party Cookies are Here to Stay (and Play) Inside Google’s Privacy Sandbox
Google’s plans to follow suit with other big browsers like Safari and Firefox and remove third-party cookies (TPCs) from Chrome has come to a crashing stop. The decision to move forward with keeping TPCs on their web browser is the culmination of many years of back-and-forth discussion on Google’s end (since the year 2020), however, they have ultimately decided to simply enhance their privacy settings without losing an advertising penny from their large pockets. Their solution – the Privacy Sandbox. The Sandbox is an ambitious project and privacy alternative that is digital-marketing and ad-tech friendly while also respecting the privacy of individuals. But even with this decision, will companies revert to using TPCs?
Digital Marketers and Third-Party Cookies go Hand in Hand
Being digital marketing friendly seems to be a key consideration for Google amidst the fear brewing in the marketing sector due to the direct benefit TPCs provide ad-tech companies.
As we all know, TPCs s are tiny bits of data that websites place on your browser when you visit them. Digital marketers and analytics companies love these cookies because they allow them to track your online behavior across different sites. They can see what you’re interested in, which ads you click on, and even build a profile of your online habits to allow for more enhanced targeted advertising.
Understandably, there are a myriad of reasons why companies like Safari and Firefox removed TPCs from their web browsers in 2017 and 2019. Reasons include reducing consumer harm, limiting the invasion of privacy, removing cross-site tracking, and fostering data autonomy for the consumer. The wave of putting more decision-making power in the data-subjects' hands (through opt-in processes) has shown us that more consumers continue to care about their privacy by choosing not to opt into these invasive tracking technologies.
In lieu of these reasons, the move to deprecate TPCs from Google was a source of significant stress for digital marketers and ad-tech companies who rely on TPCs as a revenue stream. When Google announced their “supposed” TPC removal plans in 2020, suddenly, many individuals and companies in the marketing sector began frantically planning and sourcing alternative marketing mechanisms to TPCs.
A U.S. survey conducted by Epsilon in 2020 at the height of this marketing panic showed that “69% of advertisers think third-party cookie deprecation will have a bigger impact than the GDPR and CCPA, and 70% feel that digital advertising overall will take a step backward”.
What Does this All Mean for the Future of Third-Party Cookies?
While advertisers might breathe a temporary sigh of relief, the underlying truth remains: exploring alternative marketing mechanisms should still be a priority for companies. More and more consumers are prioritizing privacy over a customized web-browsing experience. And for most consumers, their ideal browsing experience is a cookie-less one. So, even though Google has redacted its decision to remove TPCs, companies should continue to look forward and be proactive in building a more privacy secure future instead of solely relying on TPCs.
How to Prepare for a Potentially Cookie-less World
When it comes to advertising, TPCs have been front and center for many years. However, TPCs are not the only ways to connect with and understand your consumers.
1. Zero-Party Data (ZPD):
Think of ZPD as direct conversations with users. Instead of sneaking around, you ask them directly: “What do you like?” Surveys, quizzes, and explicit opt-ins give you this data. It’s like getting personalized insights straight from the source.
2. First-Party Data Collection:
Imagine you’re hosting a dinner party. Your guests willingly spill their (data) secrets. That’s first-party data. It’s what you collect directly from your website visitors, email subscribers, or app users. Utilizing the data you can see in consumer purchasing history, app activity or other CRM systems are your tools.
3. Contextual Advertising:
Contextual ads focus on the content context. If someone’s reading about hiking boots, show them hiking gear ads. No stalking—just relevance.
4. Customer Engagement
Strengthen your customer engagement through tools like loyalty programs to learn about consumer needs and reward their service-use. Connect with your customers by creating personalized experiences and offer things like exclusive offers that make their user experience much more genuine and enjoyable.
Through their Privacy Sandbox, Google has been caught in a game of tug-o-war with one side that wants TPCs gone while the other is fighting to keep them alive. However, after four long years, this game is finally over with TPCs claiming victory. However, the privacy regulatory landscape continues to become more rigorous, and while TPCs may have won the battle, they have not yet won the war. And as consumer behaviour and privacy expectations change over time, companies will soon again face the decision of whether or not it's worth utilizing third party cookies.