Google ditches plan to phase out third-party cookies

Google has officially scrapped plans to phase out third-party cookies from its search engine and browser tools.

After years of suggesting and delaying end-dates of third-party cookies, Google has made a U-turn on the technology for its web browser Chrome.

Third-party cookies track users’ web browsing activity in order to collect data for advertising and analytics purposes.

This enables advertisers to personalise ads for targeted audiences. However, due to privacy concerns, users can now opt out of third-party cookies on sites.

While competing web browsers Safari and Firefox currently have third-party cookies turned off as a default, Google Chrome will now indefinitely offer it as a choice to users.

The search engine giant says that it is doing this as it acknowledges the marketing industry was not ready for the change, and it believes it can bring greater choice to users.

“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,” wrote Anthony Chavez, Google’s VP of Privacy Sandbox, an initiative created by Google to focus on user privacy.

The UK’s Competition and Markets Authority had scrutinised Google over its plans to scrap third-party cookies, claiming it would impede competition in digital advertising.

Chavez added to the blog post that Google will “continue to consult with the CMA, Information Commissioner’s Office (ICO), and other regulators globally.”

The move has proved to be bittersweet to those in the industry, as many firms have been making adjustments to prepare for a cookie-less Google since it first announced plans in 2020.

“All that time and money and resource invested by many organisations will essentially be money down the drain,” said Matthew Holman, privacy lawyer at Cripps.

“Google has not endeared itself. However, the likely response from most organisations will be a sigh of relief because, despite all of the investment, most businesses were still not ready,” Holman added.

Communication API firm, Twilio, recently found that over half (53%) of brands said their marketing strategies still rely on third-party data, and only two in three brands claimed to be prepared for a cookie-less future.

He also suggested: “A cynical view would argue that Google didn’t want to upset its massive customer base for advertising, which makes up 80% of its revenue.”

For users, Tony Preedy, managing director at online marketplace Fruugo said: “Web users will still demand their privacy expectations are met.”

“Expressing consent through cookie settings will continue to be the primary mechanism for gathering consent and website owners need to ensure they are meeting the privacy expectations of users through elegant and granular capture of consent as to how their data will be used.”

Adding to this, Peter Bell, VP of marketing EMEA at Twilio, said there is still good reason to move to first-party data – data given directly to brands by customers.

“It’s worth remembering that Chrome represents only about half of the browser market. Other popular browsers such as Safari and Firefox have already eliminated third-party cookies, so building a business strategy centred around third-party cookies is challenging.”

“[Firsty-party data] provides the most valuable, relevant, and accurate insights when building engaging, personalised experiences,” said Bell. “Third-party cookies often suffer from low match rates (40% and 60%) and have a short shelf life.”