In 2021, we wrote about Google’s plans to phase out third-party cookies by 2022. However, the landscape has dramatically shifted since then. In a surprising turn of events, Google announced this week that it no longer plans to eliminate third-party tracking cookies from its Chrome web browser. Instead, they’re introducing a new approach that puts more control in the hands of users. Let’s dive into what this means for advertisers, especially those in the Salesforce ecosystem.

The cookie conundrum

To understand the significance of this change, let’s quickly revisit the cookie situation:

• Third-party cookies have long been the standard for tracking user behavior across websites, enabling targeted advertising and retargeting
• Other browsers like Safari and Firefox blocked these cookies back in 2013
• Google Chrome, which accounts for about 66% of all internet traffic in the U.S., was set to follow suit, causing widespread concern in the advertising industry

Instead of phasing out cookies entirely, Google is now planning to introduce a new experience in Chrome that allows users to make informed choices about how they want to be tracked across Google’s search products. This decision applies to their web browsing and can be adjusted at any time.

Why the change of heart? Anthony Chavez, VP of Privacy Sandbox at Google, explained that shifting away from cookies “requires significant work by many participants and will have an impact on publishers, advertisers, and everyone involved in online advertising.” Essentially, Google recognized the complexity of finding a one-size-fits-all solution that satisfies all stakeholders.

The impact on the ad industry

While Google’s initial threat to eliminate cookies may not have materialized as planned, it did push the industry to become less reliant on cookies and more focused on privacy-forward ad-tracking solutions:

• Universal IDs: Some firms collaborated to create solutions like Universal IDs, which rely on hashed email and phone number data
• First-party data prioritization: Marketers began focusing more on collecting and utilizing first-party data
• Clean rooms: The use of “clean rooms” for storing and sharing data has increased

While Google may not be phasing out cookies entirely, they’re still working on privacy-focused alternatives through their Privacy Sandbox initiative. Recent experiments have shown promising results:

• Google Ads recovered 86% of advertiser spend in DV360 and 89% for Google Display Ads using Privacy Sandbox APIs instead of third-party cookies
• Publishers saw a 20% hit to programmatic revenue when using Privacy Sandbox, compared to a 34% hit when third-party cookies were disabled without it

These results suggest that while not perfect, Privacy Sandbox technologies could provide a viable alternative to third-party cookies in the future.

Moving forward with a balanced approach

As we navigate this evolving landscape, it’s clear that a balanced approach is key. While third-party cookies may stick around longer than expected, the focus on privacy and first-party data isn’t going away. Here’s what you can do:

• Continue investing in first-party data strategies
• Stay informed about Privacy Sandbox developments and be prepared to adapt
• Leverage Salesforce tools to create more personalized, privacy-respectful customer experiences
• Keep user consent and transparency at the forefront of your data practices

Remember, the goal is to create meaningful relationships with your customers while respecting their privacy preferences. With Salesforce’s suite of tools and a thoughtful approach to data strategy, you’re well-equipped to thrive in this new era of digital advertising.

Find out how our Salesforce experts can help your organization.