Google Retains Third-Party Cookies in Chrome Browser

On July 22, 2024, Google announced a significant shift in its plans regarding third-party cookies in its Chrome browser. The company reversed its earlier decision to eliminate these cookies, citing the extensive work required and the widespread impact on the online advertising ecosystem, including publishers. Instead of removing third-party cookies, Google plans to introduce new features in Chrome that empower users to make informed choices about their web browsing and privacy options. While third-party cookies have long benefited marketers by enabling targeted advertising, they have also faced criticism for potentially violating user privacy through tracking.

Effect on Paid Media Advertising

For advertisers, Google’s decision to retain third-party cookies offers a temporary reprieve. The anticipated phase-out of these cookies had prompted many marketers to prepare for a major overhaul, focusing on first-party data and new tracking and targeting solutions. With third-party cookies still in play, advertisers can continue using their existing strategies and technologies for now. However, this should not lead to complacency, as majority of the other web browsers have already moved on from the use of third party cookies. The push for greater privacy remains strong, and the industry must continue to adapt to evolving consumer expectations and regulatory requirements. While Google's decision delays the transition, the shift towards a more privacy-focused web is still underway. Google's initiatives, such as the Privacy Sandbox, aim to create new standards for tracking and targeting that do not rely on third-party cookies.

Web Browser Distribution (Juy2023 - Jul 2024)

Google DV360, part of Google’s Marketing Platform, relies on third-party cookies in several key ways to enhance digital advertising efforts:

  • Audience Targeting: Cookies enable remarketing and the integration of third-party data to build detailed audience segments, helping advertisers reach specific users based on their online behavior.

  • Campaign Measurement: Cookies track user interactions for attribution and frequency capping, allowing advertisers to measure campaign effectiveness and avoid ad fatigue.

  • Personalized Ads: DV360 uses cookies for dynamic creative optimization, serving personalized ads based on a user’s past behavior.

  • Cross-Site Tracking: Cookies track user behavior across different sites and devices, creating comprehensive user profiles for more accurate targeting.

  • Bid Optimization: In real-time bidding, cookies help DV360 make informed decisions by identifying users with high purchase intent.

If third-party cookies remain available, these capabilities will help Google maintain its strong market position, particularly given the value of its data.

The Shift Away from Third-Party Cookies in Other Media

To comply with privacy laws like the General Data Protection Regulation (GDPR), website operators must identify and request user consent for third-party cookie usage. This requirement often creates friction, as not all users opt in, limiting marketers' ability to deliver targeted digital ads accurately. Additionally, the rise of ad blockers, including those in Google Chrome, further diminishes the effectiveness of third-party cookies by blocking them entirely.

Attribution models that rely on cookies have long struggled to capture the full customer journey, especially across devices, resulting in an incomplete view of campaign effectiveness. This often leads to over-crediting lower-funnel activities while undervaluing broader brand efforts. As we move towards a cookieless future, the focus shifts to more sophisticated attribution models that track interactions across various touchpoints. This transition presents an opportunity for advertisers to diversify their targeting and measurement strategies, moving away from outdated technology and refocusing on brand-building activities.

Cookieless solutions, such as broadcast and out-of-home (OOH) media, are already proving effective in driving brand metrics and enhancing lower-funnel performance. Research shows that OOH increases digital attention and click-through rates, while also boosting brand search lift. By reallocating budgets to these channels, advertisers can improve both long-term brand health and the effectiveness of their lower-funnel strategies.

Given these challenges, relying on third-party cookies, as was common in the early internet days, is no longer a viable strategy. Marketers must develop alternative approaches for online advertising and marketing to adapt to the evolving digital landscape. This transition away from cookies is an opportunity to innovate, prioritize consumer trust, and establish new standards in advertising that focus on long-term brand success.



Leah Brophy