Google reverses decision to disable third-party cookies in Chrome
Google has reversed its decision to disable third-party cookie tracking in its Chrome browser. This move was initially intended to make it more challenging for advertisers to track users across various websites. The tech giant had been testing and delaying this change for years, facing concerns from competitors, regulators, and privacy advocates. Instead of blocking third-party cookies by default, Google now wants Chrome users to make an informed choice that applies across their web browsing.
Google's new approach resembles Apple's app tracking opt-in
Google's new approach could mirror Apple's app tracking opt-in, a feature that reportedly cost social media platforms nearly $10 billion when it was introduced in 2021. Although not as radical as changing the default settings entirely, this prompt could still significantly reduce the number of users allowing third-party tracking. The decision underscores Google's commitment to giving users control over their web browsing experience.
Google's Privacy Sandbox technology shows promising results
Google's Ads team released a whitepaper on Monday, revealing the results of early tests with Privacy Sandbox technology. This technology is viewed as an alternative or replacement for cookie tracking. The results demonstrated a 97% recovery in returns on investment with Google Display Ads. However, the effectiveness dropped when trying to engage the same users with follow-up ads, showing only a 55% recovery in spending for re-marketing audiences.
Critics highlight potential risks in Google's new plan
Critics of Google's plan to phase out third-party cookies and introduce other ad-targeting technologies like FLoC or Topics API in the Privacy Sandbox have highlighted potential new privacy risks. They also raised concerns about the possibility of harming competition while unfairly benefiting Google's own advertising business. In response to Google's announcement, the UK's Competition and Markets Authority (CMA) stated that Chrome will be introducing a user-choice prompt, which will allow users to choose whether to retain third party cookies.
Industry group sees Google's change as admission of failure
The Movement for an Open Web, an ad industry group that filed a complaint with the CMA to block the rollout of Privacy Sandbox tech, interpreted the change as a clear admission by Google that their plan to enclose the Open Web has failed. Co-founder James Rosewell stated, "What wasn't acceptable was for a solution like this to be forced on the market whilst removing any alternative choices."
Google continues to develop Privacy Sandbox APIs
Despite the change in plans, Google will continue to develop Privacy Sandbox APIs and add anti-IP tracking protection for people using Incognito Mode as an additional layer of privacy. This decision provides relief for advertisers and publishers who depend on cookies to target ads and measure performance. Google's previous plans to phase out third-party cookies by early 2025 have been marked by delays and regulatory hurdles.
