Google’s recent reversal on its decision to eliminate third-party cookies, after years of promising otherwise, has caused significant frustration in the ad tech industry. This change of course, which now involves letting users decide on cookie tracking, has left many ad tech leaders feeling bewildered, though they are striving to remain composed and focused.
The implications of Google’s new approach remain unclear, raising concerns about the potential obsolescence of investments made for a cookie-less future.
Details on Google’s new strategy are sparse, but the essence is clear: after a prolonged period of assuring the ad industry of a future without third-party cookies, Google has shifted to a user-choice model.
This pivot suggests that while most third-party cookies might still be phased out, complete elimination is not guaranteed. Historical parallels, such as Apple’s similar move three years ago, indicate that user opt-outs could lead to a significant reduction in third-party tracking, thereby impacting the advertising ecosystem.
If Chrome users follow the trend set by Apple users and opt out of tracking, the alternatives to third-party cookies that have received considerable investment will still be necessary. This is why many ad tech CEOs, although frustrated, are not overly alarmed.
Google’s New Cookie Policy Shifts Focus from Elimination to User Choice, Frustrates Ad Tech Industry
They are in a holding pattern, awaiting more details on Google’s timeline and regulatory guidance. For instance, Andrew Casale, CEO of Index Exchange, has adopted a calm approach, continuing with planned developments and testing within Google’s Privacy Sandbox while supporting alternative identifiers.
Similarly, Drew Stein, CEO of Audigent, maintains confidence in his company’s investments in diverse tracking solutions beyond third-party cookies.
Stein believes the future of tracking will involve a combination of methods, including authenticated IDs, probabilistic IDs, contextual data, and first-party IDs, tailored to specific advertiser needs. Despite the uncertainty, he views Google’s announcement as reinforcing the necessity for these alternatives.
The pragmatic stance among these executives stems from an expectation of unpredictable developments on the path to a cookie-less Chrome.
Paul Bannister, chief strategy officer at Raptive, expressed that the industry’s strategy remains unchanged, continuing to develop Protected Audiences and other solutions while acknowledging the likely reduction of third-party cookies. The uncertainty surrounding Google’s implementation timeline, however, complicates planning and investment decisions.
The persistent uncertainty is a significant concern, particularly regarding the Privacy Sandbox. Major questions about user consent, the extent of third-party cookie opt-outs, and the impact on measurement remain unanswered.
This ambiguity has led some ad tech companies to reconsider further investments in the Sandbox, favoring more agnostic solutions like contextual and alternative IDs. The financial burden of adapting to Google’s evolving requirements is particularly challenging for smaller companies, exacerbating the industry’s sense of being in a prolonged state of limbo.
