Google Chrome's phasing out of third party cookies now has a starting date … and it maybe closer than you are ready for

On Friday (Australian time), Google Chrome announced it’s plans to deprecate third-party cookies for one percent of Chrome users in QI of 2024. This important piece of information was included in an update on the Privacy Box proposals and updates on the Privacy Sandbox for the Web.

This may not seem news because if you have been paying attention to the trade news for the past few years, the deprecation of third-party cookies have long been on the cards. Mounting privacy concerns and the rise of mobile web browsing and the associated tracking challenges saw Apple and Mozilla block third- party cookies on their respective browsers Safari and Firefox and provide various alternate solutions within each eco-system.  

Then, in 2020 Google announced its plan to phase out third-party cookies on it’s Chrome browser. This made all marketers take note as it would have the biggest impact to the industry given that Chrome is the preferred browser of more than 60% of global web users.  Since that initial announcement, Google made two further announcements indicating delays in their implementation however this recent announcement has now confirmed a timeline showing us all, there is no time for complacency. 

What does this mean? 
Google’s Privacy Sandbox intends to replace third-party cookies with a more privacy conscious approach. This would be by allowing users to manage their interests and then grouping them into cohorts based on similar browsing patterns. That is a major change that the online advertising industry has been talking about generally, but is now confirmed as the way forward, as soon as early 2024 – at least for 1% of Chrome users. Google’s plans to completely phase out third-party cookies at the end of 2024 appears to still be on track. 

Should this announcement activate marketers? 
In short - yes. While deprecating third-party cookies for only 1% of Chrome Users doesn’t sound like much, it will help developers assess their real world readiness for the larger impact that will come at the end of 2024.  

Despite Google's previous announcements, most ADMA Members have already been preparing for the deprecation of third-party cookies in a number of ways - including building their own first party data sets, testing campaigns within the various ecosystems and where possible, building alternate options within their own businesses. This includes adapting and launching their own ad solutions. These more forward-thinking marketers have understood that with rich databases of first-party data, they will be well positioned to survive (and thrive!) in the cookie-free world.  

For the many marketers who have advertising campaign playbooks and planners that include Google Chrome, the previews outlined in Friday’s blog posts will be useful in helping companies conduct experiments in Chrome - as it would be as an environment without third party cookies. Google’s Privacy Sandbox will make it's relevance and measurement API’s generally available to all Chrome users, making it easier for developers to test these API’s with live traffic. APIs available for testing include Topics, Protected Audiences and Attribution Reporting. Organisations can start testing these activities as soon as July 2023. 

The plan was developed with close consultation and co-ordination with the UK’s Competition and Markets Authority (CMA). This is significant because to date this regulator has had an influence on Google's choice to shift their timelines for third party cookie deprecation. So, these timelines are not likely to change as a result of current CMA activity. 

Google strongly encourages all publishers and advertisers to connect with their ad tech providers if they are interested in testing these early environments. Most adtech developers should be able to start testing their solutions at scale.  

Refresher: What are Cookies and Why do they Matter? 
A cookie is a small bit of data stored as a text file in a browser allowing websites to track users and customise their browsing experience. Website cookies are used for core website functions such as remembering login details, preferred languages, location settings, shopping carts etc. They help improve the user experience and make it seamless.  

There are two types of cookies – first party and third-party cookies and both collect personal data. First Party cookies are those generated by websites the user is currently visiting. It collects personal data for use within that website environment. The data is shared internally, not with other sites. These cookies are not being phased out.  

Third-party cookies, are created by other websites and platforms and are used for re-targeting and behavioural advertising. The adding of tags to a page allows advertisers to track a user across the web as they visit different websites, building user profiles on insights gained from this tracking. These user profiles are then used to serve the user more relevant ad content. It is these third-party cookies that are being phased out. 

Impact on data-driven marketers 
Don’t underestimate the impact this will have on your day-to-day online advertising schedules. The “Privacy Sandbox” may lead one to assume that this change is a compliance related one. But this is only part of the story marketers need to be aware of.  

Yes, there has been a need to prioritise the consumer and this has played a role in the move for platforms to change the way in which they serve advertising with the use of third-party cookies. However, the changes will not only impact a marketer's ‘privacy practices’ around data collection,  but the phasing out of cookies will also extend to a change in the way marketers action targeting, measurement , reporting and attribution across the open web. There is going to be a fundamental shift in the online advertising industry and the marketers who are most prepared will feel the jolt less than those that just wait for things to change around them. 

What data-driven marketers should do next
ADMA strongly recommends all marketers take an intentional approach to the changes that are coming in the ecosystem. Many marketers are starting to move quickly and get their heads around what is happening in the regulatory space, understanding that this has a flow on effect on what tech platforms do, the solutions developers need to work on and the needs of advertisers in serving their consumers with the best possible experience. The confirmation of these deadlines will likely activate those that are lagging, and separate those that will succeed in the new world from those that may not.  

All marketers need to ensure that they (and their agencies) fully engage in the process of reviewing the options that each key platform is offering, including participating in any available testing processes.  

This will involve speaking to your tech platform (if you are a direct partner) and/or your tech agency – who work with brands to try and get the most of the ads they serve across websites and/or ecosystems. Make sure they are aware of the new APIs that will be made available. 

Continue to Test and Learn - across all the platforms.  It is likely that the options you used in your digital advertising to date were somewhat uniform across browsers/ apps etc. The changes will now see all marketers incorporating many different alternative solutions. This will undoubtedly impact your reporting, measurement, targeting, compliance, marketing budgets and more. 

All data-driven marketers should use this new announcement from Google as the opportunity to either start your teams preparing for the new world, and if you are already some ways along – this helps you cement your own timelines. In the end, it will the marketers who are most prepared that will lead the way in a world where third-party cookies have been phased out.