What Google's decision to retain third-party cookies means for users, enterprises, and the advertising industry

Google announced its decision to retain third-party cookies, a significant shift from its long-anticipated move to go cookieless. This decision impacts Google Chrome users, enterprises, and the advertising industry. Let's explore what this means for each group.

Google's future with cookies

Google's decision to keep third-party cookies in Chrome won't drastically change the browsing experience for most users. If privacy is a concern, users can already block these cookies in Chrome's settings. However, Google will likely simplify this process, potentially making it easier to opt out of tracking by default or through a prominent prompt. While the underlying technology remains the same, managing privacy preferences in Chrome will likely become more user-friendly.

Safari and Firefox maintain a stricter stance than Google

Safari and Firefox have already implemented stricter measures against third-party cookies. Safari's Intelligent Tracking Prevention (ITP) and Firefox's Enhanced Tracking Protection (ETP) block third-party cookies by default. Since Google has decided not to deprecate third-party cookies, the web browser's policy remains more lenient than Safari and Firefox, which have taken more aggressive stances on user privacy.

Impact on advertisers and Google Chrome users

For advertisers, Google's decision provides an extended adaptation period. This delay allows ad-tech platforms, advertisers, and publishers to adapt to alternative tracking and advertising solutions without abruptly losing revenue. Additionally, it offers an opportunity to address the U.K. regulator's anti-trust concerns surrounding the Privacy Sandbox proposal, potentially leading to a smoother implementation.

For users who enable third-party cookies, persistent privacy risks remain. Third-party cookies will continue to track users and collect user data.

Advertising industry implications

While the specifics of Chrome's implementation remain unclear, most users will likely opt out of third-party cookies if given an easy choice, similar to the trend seen with Apple's App Tracking Transparency (ATT) framework. This could cause advertisers who depend on third-party tracking, especially within the Google Chrome ecosystem, to lose significant user-level data. As a result, the advertising industry may accelerate its focus on using first-party cookies for first-party data collection, contextual advertising, and privacy-preserving technologies like Google's Privacy Sandbox.

Actions for enterprises

Enterprises should prepare for a higher rate of users opting out of third-party cookies as Google simplifies the process through prompts or default opt-out settings. This shift increases the importance of first-party data. Companies should continue as if a "cookieless world" and "cookie deprecation" were on the horizon and remain focused on building a first-party data foundation. Emphasizing first-party data collection and adapting to privacy-preserving technologies will be crucial in this evolving landscape.

Overall, Google's decision to retain third-party cookies in Chrome marks a significant moment for users, advertisers, and the broader industry, emphasizing the need for adaptive strategies and privacy-focused innovations. This also highlights the differing approaches to privacy and user tracking among major web browsers, with Safari and Firefox leading the way in stricter privacy protections.