After years of uncertainty, Google has decided to keep third-party cookies after all.
More than four years after announcing that it would deprecate third-party cookies within its globally dominant Chrome web browser, Google reversed that commitment and is instead taking steps to give users more control over whether they are tracked by advertisers.
Since the early days of the internet, third-party cookies have been central for digital marketers to understand user behavior and preferences through data they didn’t collect themselves. These trackers enabled detailed insights and ad targeting, thriving in an era when consumers and regulators paid little attention to data collection practices.
However, with data collection comes growing consumer awareness and opposition. The status quo around data privacy began to shift. Now, almost half of consumers (47 per cent) are unconfident that brands are using their data responsibly. This has highlighted the need for greater privacy protection for customers.
Despite Google sticking with third-party cookies within Chrome, Google’s Privacy Sandbox initiative will aim to balance personalised consumer experiences with privacy, likely supporting digital advertising in the medium term.
While it helps brands maintain targeted advertising and performance measurement without invasive tracking, the shift towards first-party data and consumer choice driven by regulatory and market forces remains uncertain. Its long-term relevance will depend on whether first-party data becomes the standard for targeting.
So, what does this approach mean for marketers?
With the decision finally being made, this creates both challenges and opportunities for marketers.
Brands still need to look at new ways to personalise customer interactions while respecting consumer privacy, leading to a focus on first-party data.
First-party data is not only more reliable, but it is also more privacy-compliant as it is collected with consumer consent and provides deeper insights into customer preferences and behaviours.
With 75 per cent of marketers still using third-party data for their campaigns, many marketers are still dependent on third-party cookies. However, marketers shouldn’t be lulled into a false sense of security by this announcement.
While Google is giving brands more breathing room, the industry still needs to transition away from solely focusing on third-party data and build a robust first-party data strategy. That doesn’t necessarily mean refusing to use any third-party data under any circumstances, but it does mean shifting the center of gravity of your data approach to something more sustainable and impactful.
Trust is the missing puzzle piece
While the death of the third-party cookie in Chrome is looking less likely, at least in the short-term, the reality is that this announcement doesn’t reshape the fundamental dynamics at play when it comes to the use of third-party data by marketers.
Brands need to focus on building direct relationships with their customers and encouraging data sharing through value exchanges such as personalised experiences, loyalty programs, and exclusive content.
At the core of this challenge lies trust. Building trust with consumers around how their data is used is a vital and welcomed first step in ensuring consumers feel confident brands are using their data for their own good.
Surprisingly, a recent survey found that 70 per cent of consumers are open to sharing personal data with brands for tailored experiences. Moreover, a third of consumers prioritise brand trust and product quality in repeat purchases, highlighting trust’s crucial role in driving consumer loyalty.
This approach not only helps in collecting valuable first-party data but also fosters trust and loyalty among consumers.
How AI can compete with cookies
Ignoring the potential for AI to drastically change how companies approach interactions with customers is a mistake. Investing in AI technology will allow businesses to harness the full potential of the first-party data they are collecting.
New tools can help brands analyse customer interactions, predict future behaviours, and even deliver personalised content in real-time. GenAI tools are already harnessing first-party data to change how marketing campaigns work by providing unique and personalised experiences to large audiences on an individual level.
They can help marketers to personalise messaging based on the channels the customer most engages with, tailoring things like recommended items, location-based personalisation, the language of messaging, all the way down to the best times to be engaging with them.
Where do marketers go from here?
The inevitable deprecation of third-party cookies and the introduction of Google’s Privacy Sandbox are reshaping the marketing landscape.
The collection of first-party data helps brands and marketers understand what consumers care about. This context not only builds trust but also encourages a value exchange between a brand and the customer.
This focus also simplifies compliance and reduces the risk of playing a game of cat and mouse with regulators and platforms, fostering a genuine connection between brand and consumer.
By Shahid Nizami, Vice President, APAC & GCC at Braze
