After years of uncertainty, Google has announced that it will no longer completely phase out third-party cookies in the Chrome browser. Instead, it will introduce a new interface allowing users to choose whether they want to share their data with websites and advertisers. While the Privacy Sandbox ad serving and analysis standard remains an important initiative for the company, it is no longer the only alternative.
Google is currently discussing the issue with regulators, including the UK Competition and Markets Authority (CMA) and the Information Commissioner’s Office (ICO). Plans to meet with representatives of the advertising industry are also underway. However, details about the new solution’s implementation remain vague, and the exact timeline has not been specified.
Continued Commitment to Privacy Sandbox
Despite the shift, Google emphasizes that the Privacy Sandbox remains a priority and will continue to receive investment. The company plans to add new features to the sandbox, such as the recently announced IP address protection mode in Incognito Chrome. According to Google, the Privacy Sandbox will provide APIs to enhance both privacy and usability in Chrome.
The advertising industry, which has been wary of the consequences of ditching third-party cookies, may find this move beneficial. At the same time, if a significant number of Chrome users opt out of tracking, sandbox APIs could become a major tool for ad targeting.
Results and Industry Reactions
Google cites encouraging results from its Privacy Sandbox tests, which show that ad performance can remain effective without third-party cookies. For instance, tests conducted from January to March this year revealed that Google Display Ads saw an 89% recovery in ad spend, while Display & Video 360 saw an 86% recovery. The return on investment was 97% and 95%, respectively. These results raise hopes that Privacy Sandbox technologies can restore advertising performance without relying on third-party cookies.
However, these are only preliminary results, notes NIX Solutions. Advertising industry experts point out that testing Privacy Sandbox on 1% of Chrome users limits the ability to draw reliable conclusions. Interest in testing among publishers has waned, with some stopping resource allocation for these experiments.
Google’s decision to retain third-party cookies in Chrome may benefit the advertising industry, but it raises questions about its long-term strategy for privacy and user data protection. While the company continues to develop Privacy Sandbox, the issue remains open for advertisers and web publishers. We’ll keep you updated on further developments.