After years of uncertainty and delays, Google has decided not to eliminate third-party cookies entirely but to elevate user choice. This decision signifies the ongoing importance of first-party data collection, as it remains unclear how many users will enable cookie tracking versus opting out of third-party cookies. However, first-party data is generally of higher quality than data typically obtained from third-party sources and is reliable regardless of industry changes.

“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 that choice at any time.” – Anthony Chavez, Vice-President of Privacy Sandbox

Google’s approach is reminiscent of Apple’s App Tracking Transparency (ATT) framework, which introduced a universal prompt to discourage tracking consent. Apple’s strategy effectively ended the mobile ad ID as a viable targeting and measurement tool, as most users declined to opt into tracking. It seems likely that third-party cookies will meet a similar fate in Google Chrome.

Drawing parallels with Apple’s ATT framework

Apple’s ATT framework provides a relevant benchmark for understanding potential outcomes in the ad tech ecosystem. In the first few weeks, the global opt-in rate hovered around 15% before gradually increasing as app developers improved their pre-prompt messaging to inform users about consent choices. If Chrome follows Apple’s lead, it could effectively spell the end of third-party cookies as a viable signal, with potentially only a small percentage of users consenting to tracking.

Preparing for a first-party data future

In such a scenario, advertisers will need to rely primarily on cookie alternatives, including the Chrome Privacy Sandbox, first-party data collection methods like Enhanced Conversions, and techniques to send first-party data in a first-party context, such as server-side tracking.
Navigating these changes is much like a sports team adapting to new rules mid-season. The fundamentals of the game remain the same, but strategies and tactics must be adjusted to stay competitive. Advertisers should focus on:

• Enhanced conversions: Utilise tools that collect first-party data directly from user interactions on websites.
• Server-side tracking: Implement methods that allow for data collection and transmission in a first-party context, ensuring compliance and data accuracy.

The competitive edge

The game hasn’t changed, but the strategies have. As advertisers, it’s crucial to adapt to these new data collection methods to stay ahead. Companies that effectively leverage first-party data will likely see improved targeting and measurement capabilities, despite the decline in third-party cookie usage.

Do you need support in maximising the potential of your first-party data despite industry changes? Adapting to these new realities can be challenging, but with the right strategies, it’s entirely possible to thrive.

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