A new season of e-Dilemmas is underway! IAB Croatia has launched this series of columns on LinkedIn to delve into important questions facing the domestic digital community. In the latest edition, they explore the well-known topic of cookies.
Recently, we’ve encountered significant news: instead of phasing out third-party cookies, Google has proposed a new approach that, as emphasized, centers around user choice. This “new experience in Chrome” allows users to make informed decisions that will apply across their web browsing and can be adjusted at any time. Google has stated that it is discussing this new direction of the Privacy Sandbox with regulators and will collaborate with the industry during this process. However, they’ve also emphasized that it’s important for developers to have alternatives for preserving privacy.
It’s worth remembering that the industry had been preparing for Google’s phasing out of third-party cookies, which was scheduled for early 2025. This was expected to mark a turning point for digital business, and that’s why the IAB Croatia Working Group on Phasing Out Third-Party Cookies prepared an extensive document last year titled “Guidelines for a Digital Future Without Third-Party Cookies.” These guidelines include basic information, a review of legal circumstances, insights into consumer data access, and the impact on the digital industry from various perspectives. The document also offers an overview of alternatives and effective solutions.
What has changed in the industry since November 2023, when the Guidelines were issued? In November, the Guidelines equipped us with a comprehensive and systematic overview of information in an extensive document. But what does Google’s latest announcement mean for the market? How have digital agencies been preparing for a world without third-party cookies, and how might they adjust their procedures in light of the new context? What should we expect and prepare for? And – are we ready to give up cookies, at least in the form we currently know them? There are many questions, and Mario Frančešević (SeekandHit) and Saša Milinović (OMD) shared their answers.
Mario Frančešević, CEO & Founder, SeekandHit:
Google’s retreat from phasing out third-party cookies in the Chrome browser is big news, but it changes almost nothing for agencies and companies. The worst thing you could do because of Google’s decision is to abandon the adaptations we wrote about in the guideline document.
So far, we know very little about what Google’s implementation of consent in the Chrome browser will look like. Google hasn’t released plans on how they intend to do this, so we can only speculate. The choice about using third-party cookies will shift to the user, freeing Google from responsibility and certain obligations to regulators—if they even allow this type of implementation.
If I were to guess, one likely solution is that Google will follow the path Apple took when it introduced ATT (App Tracking Transparency) within mobile apps, giving users the option to decide whether to accept certain conditions in exchange for being tracked through apps, and in Google’s case, within the Chrome browser using third-party cookies. Although this approach seems like it will help third-party cookies survive, the reality is that most Chrome users will reject their use, significantly reducing their usefulness to companies and advertisers.
It’s also important to mention that Google has many reasons to completely eliminate third-party cookies. Google’s advertising ecosystem consists of three parts: Search, YouTube, and the Google Display Network (GDN). Search and YouTube don’t need third-party cookies and are highly profitable parts of Google’s business, while GDN, which depends on them, is a low-profitability segment. Additionally, regulators have the biggest issue with GDN. By eliminating cookies and likely marginalizing GDN, Google would direct advertisers and users toward the more profitable part of its ecosystem.
In other words, the consent approach that Google has suddenly turned to instead of complete elimination is just another way to achieve the same goal.
Saša Milanović, Cross Platform Business Development Director, OMD:
Since November 2023, the industry has been intensively preparing for a world without third-party cookies. We’ve invested in technologies like contextual advertising, resolved issues around 1st party cookie consent, upgraded CRMs, waited for Google’s ultimate solutions (which never came), media companies have frantically acquired their 1st party data solutions, Privacy Sandbox became the ultimate mantra for every digital professional, etc. However, with Google’s latest announcement about extending the use of third-party cookies, these preparations seem like preparations for an exam that was ultimately canceled. But was it really canceled? Actually, it wasn’t. Google’s latest announcement gives the market a (temporary) reprieve, bringing back familiar tools for tracking and targeting users. However, this situation is temporary—third-party cookies are definitely going away, and it’s just a matter of how Google and Chrome will handle it in the future. The market must remain cautious, continue the preparations for life “after cookies,” and be ready for quick adjustments to future changes.
Our agency has been preparing through several key steps:
- First-Party Data Collection: We’ve increased efforts to collect data directly from users through sign-ups, newsletters, apps, and interactions on our platforms. We’ve spent a lot of time setting up legal frameworks to ensure the collected data is usable and that all future data collected is also usable.
- Contextual Advertising: We’ve tested sophisticated global models for contextual targeting that don’t require tracking users via cookies.
- Data Clean Rooms: We’ve explored the possibilities of DCRs, which allow data analysis without directly sharing user data. This enables us to better understand consumers and target them more precisely while ensuring user privacy.
Regardless of the new context, we will continue to invest in technologies and “processes” that don’t depend on third-party cookies to be ready for any changes that come our way.
Next year will likely bring even more changes and adjustments. We expect the following:
- New Privacy Regulations: Further tightening of user privacy laws, like GDPR, will shape how data is collected and used.
- Advances in Privacy-Protection Technologies: Development of new tools and technologies that enable tracking without compromising privacy.
- A More Diverse Data Ecosystem: Increased use of first-party data and data-sharing partnerships between companies in a way that respects user privacy.
Simply put, be prepared for constant adaptation to stay ready for regulatory or technical changes that are inevitably coming.
The conclusion: only change is constant—nothing new for digital leaders. Be agile, stay updated, and be among the first to implement new developments. In line with this, we will certainly return to this “cheat sheet” of useful knowledge offered by our interviewees in our future work, and we are also interested in your comments, plans, and assumptions.
Join the conversation in the comments on IAB Croatia’s LinkedIn.
