• by Ray Schultz , Columnist, July 29, 2024

It is hard from this distance to view Google’s cancellation of its cookie phaseout as anything but a debacle. 

Publishers and marketers invested in tools that would help them deal with the loss of third-party cookies as the clock was ticking. And now the threat has been eliminated — just like that. 

“This news isn’t very surprising,” says Adam Blomberg, vice president of product marketing and partners at Funnel. “Google’s privacy sandbox initiative hasn’t gained much traction, and notably both Microsoft and Apple have declined to implement it.”

“Advertisers and media buyers are already seeing a decrease in tracking and targeting accuracy," Blomberg says. "Some of them are taking action -- for instance, using more holistic measurement methods that don’t depend on event-level data, or by going back to contextually targeted advertising.

"We advise marketers to act as soon as possible, because even if the third-party cutoff won’t be as hard as we might have thought, the pattern is clear and advertising efficiency is already suffering,” he adds. 

Carol Howley, CMO of Exclaimer, also advises businesses not to become too comfortable.  

“Google's decision to scrap its plans to phase out third-party cookies is a significant U-turn that offers marketers a reprieve but also underscores the dynamic nature of our industry,” Howley says. “While this move might ease some immediate concerns, it should not deter us from continuing to innovate and prepare for a future where privacy is paramount.”  

Howley adds: “In an era where consumers are increasingly aware of their data privacy, marketers need to embrace strategies that go beyond third-party cookies. This means leveraging first-party data more effectively and exploring diversified tactics such as content marketing, search, and paid campaigns to engage customers. Offering users the choice to submit personal information voluntarily can foster trust and lead to higher conversion rates.”

Has anyone bothered to prepare for the now-cancelled cookie deprecation? Many firms have, judging by a survey recently done by Wunderkind. 

Of the retail executives polled, 75% say they are shifting to first-party data that they collect on their own sites. Moreover, 52% are implementing zero-party data direct from the consumer, while 69% are turning to such owned channels as email and SMS. 

Google’s plan had them concerned: 61% expressed significant concern, and 63% said third-party cookies still played a role in their advertising strategies. 

To combat the deprecation of third-party cookies, 75% of respondents say they are turning to first-party data collected on their own sites directly from consumers as an alternative. Another 52% are implementing zero-party data, or information that a customer willingly and eagerly shares, like preferences. And 69% are also turning to owned channels like email and SMS. 

Tim Glomb, vice president of digital, content and AI at Wunderkind, issued this warning (obviously prior to learning about Google’s decision: “Marketers have become addicted to third-party cookies and technology to run ads to consumers they don’t know. While half are just now starting to see Identity Resolution as a powerful alternative, the other half are still not yet proactively seeking a cookie-less solution while they still have time.” 

We shall see whether Google now cancels its tough new rules for bulk email senders.