Google announced its initial intentions to eliminate third-party cookies in 2020. While the decision was based on protecting the data privacy rights of users, companies and marketers were left racing to replace them. Yet, as the years waxed and waned, the search engine giant continued to stall its plans for the cookie-pocalypse.
Flash forward to today, Google has not only failed to remove third-party cookies from its Chrome browser but has also just announced a complete reversal of its decision, abruptly throwing marketers back into a digital world with access to this form of user data.
The sudden whiplash has marketers scrambling once more. Were the resources and time spent on harnessing first-party data all for nothing? Should advertisers return to relying on cookies? And most importantly, can Google be trusted to stick to its guns this time around?
As marketers forced to adapt to the play-by-play of Google third-party cookies, we’re here to weigh in on the recent shake-up and provide some direction about marketing with first AND third party data.
Why the change of heart?
Perhaps the most pressing question on the minds of tech experts and marketers alike is “Why the sudden shift in opinion?” The industry-altering decision seemed to come out of nowhere. Google has invested years of research and development into alternatives for third-party cookies, like its Privacy Sandbox, a programmatic advertising substitute geared towards protecting users from cross tracking while assisting companies with the transition.
However, Anthony Chavez, Vice President of Privacy Sandbox, revealed Google’s reasoning for the policy change, explaining, “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 the choice at any time.”
Google currently commands over 65% of the browser market share worldwide (BrowserStack). One of its primary competitors, Safari, has championed the privacy conversation by providing searches without third-party cookies since 2017. Other challenger browsers with definitive stances on data collection, like DuckDuckGo, have also gained momentum, though still substantially smaller than mainstream search engines. And yet, as the browsers that make up the remaining 35% market share rally around different privacy barriers, Google has made the decision to place the privacy of users back into their own hands.
Cookie jar in hand, what will marketers do next?
So, if Google has reversed its third-party cookies policy, why aren’t marketers rejoicing in the streets? Instead, many vendors, advertisers, and companies have become even more hesitant about their next steps following the announcement — for several reasons.
Just as Google invested plenty into transitioning away from cookies, marketers have also made significant investments into alternative data collection methods. In our article “Cookieless Advertising: What’s Next?”, we ideated several ways brands could start collecting first-party data in the wake of the Google’s coming third-party cookies apocalypse (or so we thought), including contextual advertising, email marketing, and expanding programmatic ads.
After the copious efforts and growing pains many marketers faced in adjusting to first-party data collection, the thought of switching back to Google third-party cookies seems almost unfathomable.
Ultimately, Google’s cookie reversal has invited new waves of uncertainty for advertisers. From the moment the search engine announced it would begin phasing out third-party data, companies and marketers have been forced to rapidly adapt to a changing digital environment while also juggling constantly changing enforcement timelines. The most recent delay was announced in May 2024, when it was stated Google intended to deprecate third-party cookies by early 2025.
Over three months later, the search engine has not only changed its mind once again, but also announced the termination of the effort altogether. With years of back and forth, many advertisers are left wondering whether Google will even stick with its reversal decision. Uncertain about the browser giant’s next move, marketers are stuck with the question of returning to Google third-party cookies or staying the course of their first party explorations.
In addition, there’s not only concern for Google’s next move, but also that of its users. Though Google did not outline its future plan, the company did say it intends to provide searchers the ability to opt in or opt out of cookie tracking. With the possibility that large chunks of prospects could opt out of cookie tracking, advertisers are hesitant to go all-in on third-party data.
The Positionist® perspective on Google third-party cookies
As suspicion abounds and options grow, you may feel unsure about your next move. When it comes to finding the right direction though, there’s one thing we know will lead with certainty — every time — your brand position.
When you keep your position at the forefront, you eliminate uncertainty and take control of your marketing — even in the face of company giants like Google. Your position, that meaningful difference you deliver to your customer, informs your strategy and delivers effective results. As your greatest asset, a position can give you deeper insights into the mind of your prospects and their motivations.
In the case of Google third-party cookies, your position can help you determine if you should rely on first-party data, third-party data, or a combination. For example, if your brand and its messaging resonate most with Baby Boomers, ages 55 to 64, a 2023 report asserts over 40% consistently opt out of cookie tracking when prompted (Statista). Alternatively, 20% of Millennials from ages 25 to 34 will opt out of third-party cookies while Gen Z, ages 18 to 24, are recorded at an almost 27% opt-out rate.
These statistics on Google third-party cookies can help you understand the best ways to reach your audience. In the case of reaching a more mature audience, there’s an obvious hesitancy to data tracking, even if it’s purely for marketing purposes. For these brands, focusing on Google third party cookies nearly cuts your available consumer data in half. Turning to first-party collection methods like paid search engine advertising (SERP) or behavioral advertising will feel less invasive and give you better data collection results. When it comes to the example of the Millennials and Zoomers though, you can feel more confident exploring the 70-80% of users who will still opt in to Google third-party cookies.
And even as you navigate the decision between choosing first-party data and third-party cookies, you can even employ a combination of both methods to provide the most complete picture of your consumer base.
Whether you choose to study and engage the minds of your prospects through Google third party cookies, the key to ensuring successful data collection will depend on determining and maintaining a strong position. Acting as a constant guiding light, your positioning allows you to take control of your marketing, from strategic communication to harvesting consumer data in a manner that aligns with your brand and its audience.
If you’re unsure about your next move in a world with optional Google third-party cookies, contact the positioning experts at Innis Maggiore today.