By Jonathan Baker In a major turnaround, Google announced earlier this week that the plan to phase out third-party tracking (a.k.a. “cookies”) is being discontinued. In short, these cookies are not crumbling after all. What does this mean for Google, marketing, and demands among users? Google’s dilemma This decision by Google has many marketers who relied heavily on cookies breathing sighs of relief. Users to the search engine, however, will be annoyed or angry. (As a reminder, the reason behind this movie to eliminate cookies—as far back as 2021—stemmed from privacy concerns among the millions of people that search on Google.) How can Google therefore please both marketers and users? Alternative privacy options As reported recently in Marketing Dive, Google is exploring a “new path” as an alternative to phasing out cookies. In the meantime, there are Google-based privacy controls that include the “Incognito” mode to help users maintain privacy. There are also Privacy Sandbox APIs, which target ads without collecting information about users. And, while on the topic of Privacy Sandbox… Google speaks Anthony Chavez, the vice president of Google’s Privacy Sandbox was quoted in this statement about Google’s reversed position on third-party tracking: “We are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.” Tradeoffs? Specifics of this “updated approach” or “new path” are still in the discussion stage. The Marketing Dive article points out that were Google to pursue placing an “opt in/opt out” digital feature in its settings, one downside would be a plethora of unwanted and unrequested pop-up materials that users would have to take the trouble to close. (This would be due to the EU’s General Data Protection Regulation.) So, the question many a user may have to tackle: “Do I want privacy or freedom from pop-ups?” Where consumers in the United States are concerned: Over 50 percent utilize mobile browsers to block cookies Over 30 percent apply ad blockers Two advancements in technology may also influence the choice among marketers to use cookies in the near future… First advancement: Connected television (CTV) Consumer trends in how they choose to consume media changes with the latest technological breakthroughs. One such example: connected television (CTV), which employs programmatic advertising that distributes content about products and services that are of interest to a particular user (read: potential customer). (This format has been working wonders in a partnership between toy company Hasbro and Amazon Prime Video.) Second advancement: artificial intelligence (AI) Another cookie-less ad solution is the advent of artificial intelligence (AI) in digital advertising. Currently, AI-based ads are still in the development phase but once perfected—and approved—they may well serve as an alternative to third-party tracking. (Additionally, an extra step will be necessary that claims AI-created or altered content, similar to YouTube’s current practice.) Status quo Marketers who have not made the change to abandon third-party tracking technologies are free to continue to do so. Those who have adopted alternate methods—such as first-party data—to connect with customers are already witnessed positive results. Until further notification from Google is available, strategizing through first-party or third-party will remain the choice of each individual marketer. The EGC Group will continue to keep you posted about changes from Google as well as digital marketing in general. If you have concerns or questions about how best to promote your brand to prospective customers, EGC can help. Contact us to learn more. And don’t get overly stressed about these developments. Eat a couple of your favorite cookies to unwind.
