While the recent Google cookies announcement is undoubtedly significant, I wouldn’t suggest undue alarm. It’s likely we’ll see a similar trajectory to Apple’s introduction of Limit Ad Tracking alongside the SKAdNetwork (SKAN) solution.
It’s crucial to note that Google isn’t outright banning cookies; instead, they’re granting users greater control over their data. Based on our internal data, around 75-80 per cent of iOS users currently choose the “Ask App Not to Track” option.
Given that website traffic tends to be less engaged, we can anticipate a higher opt-out rate on the browser.
Concurrently, Google’s development of the Privacy Sandbox API — a somewhat analogue of SKAN — is a positive sign.
I recommend marketers prioritising research into the Privacy Sandbox platform as it evolves. Collective action is essential to mitigate the challenges advertisers currently face with SKAN and to contribute to a safer online ecosystem. However, this is a complex task.
Our experience with SKAdNetwork highlights the ongoing difficulties in accurately attributing high-quality traffic and measuring advertising incrementality.
We’ve been compelled to construct probabilistic models and analyse organic traffic fluctuations to make final decisions on budget allocation. Implementing retargeting campaigns and deep links has also been fraught with challenges.
It’s plausible that Google will encounter similar hurdles in the future. Unlike Apple, advertising constitutes the backbone of Google’s revenue, accounting for 97 per cent of its income, so I don’t think they’ll implement drastic changes that could harm their business.
Nevertheless, it’s worth anticipating a future where over 50 per cent of users opt out of cookie tracking. Traditional attribution methods will become less effective, necessitating alternative approaches.
For example, we at Flowwow are currently using promo codes to track the effectiveness of collaborations with bloggers. Dedicated landing pages can also provide some insights, but comprehensive retargeting remains a challenge.
The big question for the industry is: what can we offer people to convince them to let us use cookies? And we’ll find this answer in the near future.
By Oleg Egorov, CMO, Flowwow
