Google's Reversal on Cookie Deprecation: What's Next?
This week, Google announced that it will abandon its plans to phase out third-party cookies. Throtle has been closely monitoring the developments in the digital advertising ecosystem, and this announcement undoubtedly has significant implications for the industry. But what does this mean for advertisers, publishers, and most importantly, for identity resolution? Throtle thought leaders weigh in:
A Cookieless Future?
Google’s intention was to eliminate third-party cookies by 2022, which was then later pushed to 2024, and this intention has driven the digital marketing community to explore alternative ways to track and target users. This move was seen as a step towards enhancing user privacy and giving control back to consumers over their personal data.
On July 22, 2024, Google declared its decision to abandon its plan to phase out third-party cookies. The decision appears to be influenced by the challenges in developing a universally accepted alternative that balances user privacy, antitrust sentiment with the needs of advertisers and publishers. However, there is mention of an upcoming Chrome experience update, which will give users more power over their browsing choices.
Chris Neuner, Throtle’s President, is not surprised by the decision but thinks that while cookies are still an essential piece of the healthcare identity process, many other factors are still at play. “There are other areas of opportunity to improve accuracy and reach that include not only cookies but other identifiers, such as alternative IDs, MAIDs, emails, IPs, and more. The landscape is ever-changing, and leaders will always remain critical of the current offerings while pushing for continual improvement to achieve better health outcomes. We are excited to hear more about Google’s update to Chrome and what it means for user choices and privacy.”
What Does This Mean?
The continuation of third-party cookies provides a temporary sigh of relief. The extensive tracking and targeting capabilities that cookies offer will remain available, allowing advertisers to maintain their current strategies without a forced shift to new technologies. However, this does not mean that advertisers should become complacent. The pressure for greater transparency and privacy is still mounting, and relying solely on third-party cookies is not a sustainable long-term strategy. And, we have yet to see what the Chrome update will exactly be.
Publishers, who have been exploring new ways to monetize their content in a post-cookie world, now have more time to refine and implement their strategies. The delay provides an opportunity to continue leveraging third-party cookies while gradually incorporating first-party data collection and other privacy-centric approaches.
The Impact on Identity Resolution
At Throtle, we understand that identity resolution is pivotal in the evolving landscape of digital marketing. The persistence of third-party cookies does not diminish the importance of developing robust identity resolution capabilities. In fact, it underscores the need for solutions that can bridge the gap between different data sources while ensuring compliance with privacy laws and regulations.
Our commitment to providing accurate, privacy-compliant identity resolution remains unwavering. We continue to advocate for a multi-faceted approach that includes:
First-Party Data Integration: Encouraging our clients to invest in first-party data collection and management to build a solid foundation for identity resolution.
Cross-Device and Cross-Channel Tracking: Enhancing our capabilities to track user interactions across devices and channels, ensuring a holistic view of the customer journey.
Privacy-First Solutions: Prioritizing solutions that respect user privacy and comply with regulations like, CCPA, and health regulations, like MyHealthMyData, ensuring that our clients can navigate the complexities of data privacy with confidence.
Dave Wirsching, Throtle’s Chief Technology Officer, maintains that Throtle’s top priorities include individual privacy and preferences. “This announcement will give some relief to the industry to allow us to focus on next-generation solutions, such as artificial intelligence and machine learning, to strengthen accuracy and reach while staying privacy-focused.”
Alternative IDs, Still Essential
Throtle firmly believes that alternate IDs remain crucial for the future of digital advertising. While cookies will continue to be a staple for targeting, the increasing trend of users opting out necessitates the use of alternate IDs to maintain consistent scale. Accurate identity resolution will continue to power effective audience segmentation, ensuring advertisers can deliver personalized experiences while respecting user privacy.
Chris Neuner sees a bright future for alternative IDs, despite Google’s cookies still in play. “While cookies will remain a staple in the digital ecosystem, alternative IDs will continue the push for greater scale and reach which is essential for healthcare omnichannel efforts.”
Preparing for the Future
While Google's decision provides a temporary reprieve, the industry's trajectory towards greater privacy and user control remains clear. At Throtle, we are committed to staying ahead of the curve by developing innovative solutions that balance the needs of advertisers, publishers, and consumers.
Jonathan McLeod, Throtle’s Director of Compliance, focuses on the privacy implication of this announcement. “Consumers are challenged by the patchwork of state privacy laws and options to exercise their rights and this simplified approach would increase privacy rights accessibility for individuals.”
Google's reversal on third-party cookie deprecation is a significant development, but it is not the end of the journey towards a more privacy-centric digital ecosystem. As an identity resolution company, Throtle will continue to lead the charge in providing solutions that adapt to the ever-changing regulatory and consumer landscape, ensuring that our clients are prepared for whatever the future holds.
Stay tuned for more updates and insights as we navigate this dynamic environment together.