In an unexpected turn of events, Google announced on Monday, July 22, that it will not remove third-party cookies from its Chrome browser as initially planned. According to Anthony Chavez, vice president of Google’s Privacy Sandbox initiative, Google will instead introduce a new feature in Chrome. This feature will allow users to make informed choices about their web browsing and adjust these choices at any time.
Google had previously planned to phase out third-party cookies by early 2025, citing concerns about their impact on online publishers and advertisers. Cookies are data packets that enable websites and advertisers to identify users and monitor their browsing habits. However, they can also facilitate unwanted surveillance.
Last year, Google announced its Tracking Protection feature as part of the Privacy Sandbox initiative. Privacy Sandbox aims to develop technologies that safeguard online privacy while preserving an ad-supported internet. This initiative supports a vibrant ecosystem of publishers, connects businesses with customers, and offers free access to a wide range of content.
Google examined the impact of eliminating third-party cookies on advertisers’ programmatic revenue in both Ad Manager and AdSense, comparing it to the impact when using Privacy Sandbox as an option. According to Google, eliminating cookies alone would reduce programmatic income by 34% for Ad Manager advertisers and by 21% for AdSense advertisers. In contrast, enabling Privacy Sandbox APIs reportedly reduced revenues by only 20% for Ad Manager and 18% for AdSense.
Most marketers would prefer to avoid any revenue decrease. However, Google argues that, given the ongoing loss of cookie signals due to blocking in browsers like Safari and Firefox and users’ privacy choices, it is better to have Privacy Sandbox than not. Google expects Privacy Sandbox’s performance to improve over time as publishers, advertisers, and adtech partners adopt and optimize it.
Google’s reversal on cookie elimination provides some short-term stability for businesses relying on cookie-based technologies but does not address the broader shift towards a more privacy-centric web. This move gives the industry more time, yet it is crucial to note that other major browsers, like Safari and Firefox, still block third-party cookies by default.
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