Fri, February 14, 2025

Google Retains Third-Party Cookies Amid Industry Pressure

Google сохраняет файлы cookie третьих лиц на фоне давления промышленности

Quick Look:

  • Google will keep third-party cookies in Chrome, reversing its earlier decision to phase them out.
  • New Chrome features will allow users to manage their data usage and privacy settings.
  • Google continues to invest in the Privacy Sandbox, integrating additional privacy controls like IP Protection in Incognito mode.
  • User opt-out could disrupt ad targeting, though Sandbox APIs offer alternatives.

After years of back-and-forth deliberations, Google has decided to retain third-party cookies in its Chrome browser. This shift comes after significant industry pressure and marks a major turnaround in Google’s previous stance on phasing out these cookies. In an announcement today, Google introduced a “new experience in Chrome” to give users more control over their web browsing preferences. This feature allows users to make informed choices about their data usage, which they can adjust anytime.

A New Approach to User Privacy

Google’s updated approach is being discussed with regulators like the UK’s CMA  and the ICO. However, details remain sparse, and no timeline has been provided for implementing these changes. According to Anthony Chavez, VP of the Privacy Sandbox, developers will still have access to privacy-preserving alternatives, ensuring their work on third-party cookie alternatives remains valuable. The Privacy Sandbox APIs will remain available and receive further investment to enhance privacy and utility.

Privacy Sandbox: Here to Stay

The Privacy Sandbox, a project developed to find innovative solutions for improving online privacy while maintaining an ad-supported internet, will continue to be a cornerstone of Google’s strategy. Chavez emphasized that additional privacy controls, such as the newly announced IP Protection in Chrome’s Incognito mode, will be integrated into the Sandbox. This move aims to balance the needs of privacy-conscious users with the economic realities of an internet driven by ad revenue.

User Choice and Industry Implications

Google’s plan could significantly impact the ad industry if users opt out of third-party cookies en masse. The APIs in the Sandbox might offer a viable alternative for targeting ads without relying on cookies. This scenario, while promising, comes with technical challenges that need to be addressed. Google’s new strategy mirrors Apple’s introduction of App Tracking Transparency, which allowed users to decide whether to share their data with apps via a simple prompt.

Preliminary Success of Privacy Sandbox Tests

To gain industry support, Google shared encouraging results from recent tests of the Privacy Sandbox alternatives. Between January and March, these tests showed that advertiser spending recovered 89% in Google Display Ads and 86% in Display & Video 360. Additionally, conversions per dollar recovered by 97% in Google Display Ads and 95% in Display & Video 360. Remarketing efforts also saw a significant recovery, albeit to a lesser extent. These preliminary results suggest that the Privacy Sandbox technologies can recover ad performance without third-party cookies.

The Road Ahead: Challenges and Expectations

Despite the promising test results, the ad industry remains cautious. Publishers, in particular, have needed help adopting the Privacy Sandbox due to limited testing capabilities and concerns over latency and ad revenue losses. The delay in phasing out third-party cookies led many publishers to scale back their testing efforts, questioning the feasibility of the Sandbox. However, larger entities like Criteo and Index Exchange have continued to test the Sandbox, though publisher adoption rates remain low.

A Balancing Act for Google

Google’s challenge lies in balancing the demands of privacy advocates with the need to sustain ad performance. Publishers have expressed frustration over the limited testing opportunities and the unclear future of the Privacy Sandbox. Some, like Justin Wohl of Snopes and TV Tropes, have entirely divested from Sandbox testing due to the delays and associated costs. This sentiment highlights the broader industry scepticism about Google’s ability to deliver a solution that satisfies all stakeholders.

Google’s decision to retain third-party cookies in Chrome reflects the complexities of navigating privacy concerns while maintaining a robust ad ecosystem. Introducing user choice features and continued investment in the Privacy Sandbox are steps towards addressing these challenges. However, the ad industry remains watchful, waiting to see how these developments will unfold and impact their operations.

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