Making sense of and coping with Google’s cookie chaos
When Google initially announced its move to deprecate third-party cookies in Chrome, the digital advertising industry went into a scramble to sort out how to move forward. Many years — and delays — later, the industry is less than surprised, albeit skeptical and a bit cynical, that Google has put the kibosh on cookie deprecation.
For some, this decision may appear like we’re exactly where we left off in 2020. But we’d be remiss to ignore the impact of Google’s decision making on our industry. Since their initial announcement we’ve seen the industry expand and contract, birth new technologies, approaches, and metrics for navigating a cookieless world. Extensive investments were made by ad tech and advertisers in testing and standing up cookieless solutions. So, why did Google back out of its decision?
A bird in the hand is worth two in the bush
If you’re not one to take Google’s explanation for keeping third-party cookies at face value, then there are a few things to consider as to why Google went back on its promise to sunset third-party cookies.
While Alphabet has been one of the biggest innovators and disruptors of our time, it’s in good company. Apple, Microsoft, and Amazon have given way to new privacy approaches, innovations in artificial intelligence, and disrupted the way consumers search for and purchase products, respectively. And we cannot downplay the impact that these changes have had on Google’s hold on the market.
Google has struggled to prove the efficacy of its Privacy Sandbox. And for many, the Privacy Sandbox was inaccessible due to the extensive resources required to adopt the technology. Simultaneously, the rise of ChatGPT began to change the landscape of Google’s bread and butter — search advertising. And, according to recent surveys, 50% of online shoppers start their product searches on Amazon, while approximately 31.5% begin their searches on Google. Throw in Apple’s App Tracking Transparency (ATT), a framework that requires apps, like Google Chrome, to request user permission to track activity across other apps and websites, and one can only surmise how these changes have impacted Google’s revenue. Perhaps Google’s decision to keep third-party cookies in Chrome was its way to cut its losses. Time can only tell.
Looking ahead
While Google hasn’t revealed all of its cards just yet with regard to what’s next, we know it’s moving toward consumer opt-in of cookies, similar to Global Privacy Control (GPC) or what Apple has done with Opt-in Consent. This is a clear indicator that the name of the game is still centered on consumer-privacy even if, for some, it’s a guise for gaining control and power.
If there is anything we’ve learned over the past five to ten years, it’s that there is power in first-party data. Understanding who your audiences are, what they want, and their interests — in a privacy-centric manner — is critical to succeeding in our space. As such, advertisers (and publishers) should continue to build a robust first-party footprint. Exploring and experimenting with stable long-term ID solutions is also crucial. Consider the numerous channels and devices we’ve seen arise in the last ten years: TikTok, VR headsets, smartwatches, smart speakers, to name a few. Knowing how to reach audiences across all their preferred environments, with relevant messaging, will remain at the center of what we do; solutions that enable us to do that seamlessly will continue to drive our industry and success forward.
Establishing strong connections to the source of supply, both from an inventory and data standpoint, will continue to be vital. Publishers will also have a unique opportunity to rethink how they build and nurture audience relationships, expand their first-party databases, and create strong value-exchanges for their audiences and advertisers that keep our internet accessible and free.
Finally, we must continue to keep a close watch on the rapid advancements in artificial intelligence (AI) as innovations and applications of this technology expand daily. Staying informed of AI’s capabilities and its impact on digital advertising should remain a top priority for all organizations within the industry.
While we recover from the whiplash Google has inflicted on the industry, continue to put your audiences at the heart of everything you do, prioritizing technologies and approaches that honor consumer privacy and uphold a positive and valuable user experience. Furthermore, continue to diversify the ways in which you reach your consumers, be it channels, platforms, or identity solutions (cookies or not), to mitigate risk when major industry shifts like these occur.