Over the course of the last 2-3 years, brands and agencies have been readying themselves for a world without third party cookies, with Google intending to help boost privacy on Chrome for its users. However, Google recently made a last-minute U-turn on this move. Our Ad Operations Manager and resident cookie/tracking expert, Dan Gionet, explains Google's move and what comes next.

What is Google doing instead of eliminating third-party cookies?

Google has decided not to eliminate third-party cookies. Instead, they will introduce new options in Chrome where users can make informed choices about their privacy settings. Details on this new model are still being worked out, and Google is discussing it with regulators and industry partners.

What was Google's replacement plan for cookies?

Google's plan to replace third-party cookies has changed over the past 4 years, but the most recent solution was called the 'Privacy Sandbox', a set of tools and technologies designed to protect user privacy while allowing advertisers to show relevant ads without using third-party cookies. For example, the Topics API would use anonymized browsing data to suggest ad categories that a user would be interested in. However, there were concerns from the industry that it wasn't private enough and anticompetitive, because Google singularly controls how it is implemented.

Why did Google change its mind?

Google changed its plan after feedback from the advertising industry and regulatory bodies, like the UK's Competition and Markets Authority, who had concerns about the Privacy Sandbox and wanted better alternatives. Regulators voiced concerns about how the disclosures explaining Privacy Sandbox and Topics API weren't clear enough to educate a Chrome user on how their data would be collected and used.

How is the industry responding?

Publishers and ad tech companies are continuing to work on new Universal ID solutions like Unified ID 2.0 (UID2.0) and RampID, as well as focusing on first-party data strategies. They anticipate that third-party cookies will become less effective as more users opt-out of cookie tracking. Rest assured, Hatch is already well underway utilizing these Universal IDs (of which cookies are just one piece among many) used to identify the anonymous unique individuals your companies seek to reach with your message.

What is Unified ID 2.0?

Unified ID 2.0 is an open-source solution developed as a privacy-first alternative to third-party cookies for identity resolution in digital advertising. It leverages email addresses (with user consent) and focuses on transparency and control, and can be integrated with other identity solutions used by advertisers and publishers.

What does this mean for advertisers?

For now, nothing changes. Advertisers can still use third-party cookies for targeted ads. However, the industry continues to move towards greater privacy, so it's always a good idea to focus on first-party data strategies, such as CRM list building, to stay a step ahead. Remember, browsers like Safari and Firefox already block third-party cookies. If you have any questions or need assistance adapting to these changes, please feel free to reach out.