Google and the Future of Third Party Cookie – Fall 2024

Google Chrome

What are Third-Party Cookies?

      • Third-party cookies are small pieces of data from a particular website stored on a user’s computer while they browse the web.
      • They are set by a third-party domain/server, not the website’s server, and are available to any website that loads the third-party server’s code.
      • Third-party cookies track users’ browsing activities to show them personalized ads on multiple websites, including social media.
      • They can also be used to remember a user’s login credentials for a particular website.

How Third-Party Cookies Work

      • Third-party cookies work by embedding JavaScript from one website into another. They enable cross-site tracking by placing cookies on a user’s device to transfer a user’s habits across multiple websites.
      • They accumulate data gathered between browsing sessions and map a clear user picture.
      • Third-party cookies can share data with other websites, allowing targeted ads to be displayed.
      • They can also increase the likelihood of conversion by showing users items they’ve previously looked at.

Managing Third-Party Cookies

      • Users can manage third-party cookies by adjusting their browser settings to block third-party cookies or by using a cookie management tool.
      • Some browsers like Safari and Firefox block third-party cookies by default.
      • Google Chrome is also planning to block third-party cookies by default.
      • Users can also use a cookie checker tool to see which websites use third-party cookies.

The Impact of Third-Party Cookies on User Privacy

Third-party cookies can significantly impact privacy, as they allow websites to track a user’s browsing history and activities across multiple websites.

This can lead to losing control over personal data and a lack of transparency about how data is used. Blocking third-party cookies enhances online privacy and security, as major browsers like Firefox and Safari have already defaulted to blocking these cookies.

Users may also be concerned about the potential for third-party cookies to be used for malicious purposes, such as tracking or phishing.

The use of third-party cookies is regulated by laws such as the GDPR and CCPA, which require websites to get user consent before using cookies.

Alternatives to Third-Party Cookies

Several alternatives to third-party cookies exist, including first-party cookies, first-party data, browser fingerprinting, and identity solutions.

A website sets the first-party cookies and are used to improve the user experience. As the name indicates, first-party cookies are not usable by any third party.

First-party data is crucial in the context of emerging privacy regulations and the decline of third-party cookies. Marketers must utilize first-party data as an effective alternative for targeted advertising and measuring conversions without infringing on user privacy, especially as the digital advertising landscape evolves.

Browser fingerprinting involves gathering data on a user’s browser and device in order to generate a distinctive ID.

Identity solutions track users using personal information, such as email addresses or login IDs.

Preparing for a Cookie-Less Future on all browsers except Chrome

With the increasing scrutiny of third-party cookies, it’s likely that they will become less prevalent in the future and that more organizations will use first-party cookies or data instead.

Websites and advertisers must find alternative ways to track users and deliver targeted ads. This shift will necessitate new data collection methods to gather user information while ensuring consent and transparency.

This may involve using first-party cookies, limitations on data collection, browser fingerprinting, or identity solutions.

New technologies, such as Google’s Privacy Sandbox, may also emerge to replace third-party cookies.

First-Party Cookies: A Different Story

First-party cookies are set by a website and are used to improve the user experience.

They are generally less invasive than third-party cookies, as they only collect data about the user’s interactions with the website.

First-party cookies are used for various purposes, including remembering user preferences, tracking user behavior, and collecting user data.

First-party cookies are also used to deliver targeted ads, but these ads are typically less invasive than those supplied by third-party cookies.

Google Abandons Third-Party Cookie Phaseout

Google reverses course on third-party tracking on Google Chrome, putting privacy choices in users’ hands.

Google has announced it will no longer phase out third-party cookies in Google Chrome.

Instead, it’s trying a new approach that emphasizes user choice and control over their web browsing privacy.

Major Policy Reversal

For years, the company had been working towards eliminating third-party cookies, repeatedly delaying the implementation due to various challenges.

Instead of deprecating these cookies, Google will introduce a new experience in Chrome that allows users to make informed choices about their privacy.

Anthony Chavez, VP of Privacy Sandbox at Google, stated in the announcement:

“We are proposing an updated approach that elevates user choice. 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 can adjust that choice at any time.”

User Control At The Forefront

Under this new proposal, Chrome users can set their privacy preferences, which will apply across their web browsing activities.

This pivot comes after extensive feedback from stakeholders, including regulators like the UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO), publishers, web developers, standards groups, civil society, and advertising industry participants.

Consent and Cookie Management

The use of cookies by websites is strictly regulated by laws such as General Data Protection Regulation and California Consumer Privacy Act. These laws mandate that websites must obtain explicit consent from users before using cookies. In addition to obtaining consent, websites are required to provide clear and transparent information about the use of cookies. Users must have the ability to manage their cookie preferences and should be able to withdraw their consent at any time. To assist with compliance, websites can utilize cookie management tools, which not only help them adhere to these regulations but also provide users with greater control over their personal data.

Continued Commitment To Privacy Sandbox

Despite this significant change in direction, Google remains committed to its Privacy Sandbox initiative. The company plans to continue developing and offering Privacy Sandbox APIs to improve privacy protection and utility for those who use them.

Additionally, Google intends to introduce IP Protection into Chrome’s Incognito mode, further enhancing user privacy options.

Implications For the Digital Advertising Landscape

This reversal will likely have far-reaching implications for the digital advertising industry, mainly targeted advertising. Advertisers and publishers preparing for a cookieless future may need to reassess their strategies.

Google will continue to consult with the CMA, ICO, and other global regulators as it finalizes its new approach. The company also intends to engage with the industry as it rolls out these changes.

In Summary

As Google shifts its approach to third-party cookies, here are key points to remember:

      • Google isn’t phasing out third-party cookies in favor of first-party cookies as planned.
      • Users will have better control over their privacy in Chrome.
      • The Privacy Sandbox project will continue, offering alternative technologies.
      • This change will affect advertisers, publishers, and users differently.
      • The full impact of this decision on the digital advertising landscape remains to be seen.