Cookie Conundrum: Uncertainty continues as clock ticks towards 2024
Year 2024 is set to be the year when the advertising industry bids farewell to third-party cookies and prepares for a more privacy-conscious era where identity reigns supreme. Google has repeatedly stated its intention to phase out cookies in Chrome by the end of 2024 and is actively developing alternative solutions like Privacy Sandbox to provide for targeted advertising and audience measurement. Yet,there is no concrete timeline or roadmap to deprecate cookies so far. After pushing back the deadline several times in the last four years, Google had finally committed to a firm timeline in 2023 with a phased approach supposed to start with 1% deprecation in January 2024 gradually increasing until eliminating 100% of third-party cookies in the second half of 2024. “Even as the clock ticks towards 2024, the majority of programmatic ad spend is still being put toward cookied inventory across verticals”, found a study conducted by 33Across in the third quarter of 2023. Though India specific data is not available, media planners tell e4m that cookie-driven spending continues to drive programmatic advertising. “While most brands have started investing time and resources almost a year ago to adapt their strategies and ensure compliance with evolving privacy regulations, most companies have not taken tangible steps to prepare for the migration towards a cookieless ecosystem,” says a senior ad executive. “Marketers are still using third party cookies. However, they have certainly realized the importance of CRM softwares to harness first party data because in the post cookie world consumer persona will be created using first party data,” says Sachin Kumar, founder of Bottle Openers. Over one third of brand, agency, publisher and tech representatives worldwide also believe that the deadline for cookie deprecation will be pushed back again, according to a report by ID5 titled “The state of digital identity 2023”. “Unexpected technical hurdles or regulatory interventions could potentially delay the timeline, though it is highly likely that Google will deprecate third-party cookies in Chrome by the end of 2024”, says Shiva Bhavani, CEO of Wing Communications. Google accounts for an estimated 60 percent percent of global ad inventory. Cookieless browsers like Safari and Firefox together account for the rest of 40 percent. Google insists deadline is 2024 Anthony Chavez, VP, Privacy Sandbox, Google shared a blog on Thursday outlining ‘The next step toward phasing out third-party cookies in Chrome’. “On January 4, we'll begin testing Tracking Protection, a new feature that limits cross-site tracking by restricting website access to third-party cookies by default. We'll roll this out to 1% of Chrome users globally, a key milestone in our Privacy Sandbox initiative to phase out third-party cookies for everyone in the second half of 2024, subject to addressing any remaining competition concerns from the UK’s Competition and Markets Authority," he wrote. “With the Privacy Sandbox, we’re taking a responsible approach to phasing out third-party cookies in Chrome. We’ve built new tools for sites that support key use cases, and provided time for developers to make the transition. And as we introduce Tracking Protection, we’re starting with a small percentage of Chrome users so developers can test their readiness for a web without third-party cookies,” he noted further. Cookieless world Third-party cookies have been a fundamental part of digital advertising for nearly three decades. They are being used to track users' online activities and showing them relevant ads. In the post-cookie world, measurement of effectiveness of campaigns and conversion are going to become even more expensive, feel some experts. “The extensive proliferation of user-generated content across social search and local platforms like Google, Facebook, and Amazon has already increased the cost of reach. And the third-party cookies not being there will further drive the placement price even higher,” a digital marketer said. However, by embracing contextual targeting, leveraging first-party data, fostering collaborations, and harnessing the power of AI, marketers can continue to deliver personalized, relevant ads to their target audiences while respecting user privacy, she added.