Google first announced that it would be phasing out third-party cookies on Google Chrome as part of its strategy to resolve ‘competition concerns’ and prioritise consumer privacy. As of January 2024, Google was already restricting their use on some sites with the goal of eliminating them completely by the end of the year. Until last week, when the company announced that it would not be deprecating third-party cookies. What does the new Google cookie decision mean?
It means that the advertising industry can breathe, and brands can prioritise customers and experiences with greater ease. It also means that consumers will get the choice to opt into tracking cookies so brands can still benefit from the personalisation and targeting third-party cookies provide.
Originally, the third-party cookie ban meant advertisers would lose access to critical data, limiting a brand’s ability to target audiences. This led to a shift towards 1st-party data solutions designed to provide brands and businesses with the targeting and data they needed without impacting on user privacy or industry regulations.
‘The adtech industry was concerned,’ says Gil Sperling, co-founder and CEO of Flow. ‘Publishers were facing the challenge of not being able to target prospective customers, which would impact their relationship with advertisers, the return on investment (ROI) would be difficult to track, and targeted advertising would lose its momentum and value. Targeted advertising sells for a premium – the lack of third-party cookies had a direct revenue impact on companies.’
Until Google changed its mind.
The lobbying from advertisers and publishers led to Google opting into a new strategy, one where the customer gets to say yes or no to the third-party cookie. This move allows for privacy and freedom of information regulations to remain intact.
However, over the past few years, industry players who would have been most affected by the demise of the third-party cookie have continued to innovate, finding new ways in which brands can benefit from data and insights so they aren’t left behind.
Companies have had to navigate radical change within this industry before. In 2023, Facebook made changes to its advertising policies that directly affected marketers – it became significantly more complex to optimise, measure and target customers. Driven by changes in the Apple iOS14 on transparency and growing concerns over user privacy, the changes took place in 2022. And brands? They adapted, and today conversion rates and audience engagement remain high, keeping Facebook as a leading source of consumer targeting and engagement.
The cookie is most welcome back at the table, but it is now not the only way for brands to build connections and transform experiences. Today, first-party data solutions reimagine the potential of the data in a dynamic and powerful way.
FLOW
www.flowliving.com
