‘It does leave one question slightly unanswered’: Industry reacts to Google abandoning cookie quest

Antonio Panuccio, head of data and technology at Enigma

I think there’s been a communal lift in the industry as everyone breathes a sigh of relief from this news. However, this ought to be treated as yet another reprieve in the timeline rather than an excuse to cease privacy-preserving action. The cookie is still getting stale, audience addressability will continue to be a growing concern, and this fork in the road is still just a proposal. We’re yet to know where things are going to go in a year or two, but that might be why that sigh of relief is so powerful today: because this seems to bring a level of certainty (in being able to fall back into the ways of old) rather than the ambiguity we’ve become accustomed to.

With this news, we think we’ll see is a re-shuffle of priorities with adaptation efforts to third-party cookie loss dropping down the list but not disappearing. It’s still incredibly important for brands to put the pieces in place to secure, own, and operationalise their own data rather than relying on black boxes, and it’s very hard to stop that progress once you’ve started. In Australia, those efforts are intrinsically linked to growing concerns around cybersecurity and the to-be-legislated Privacy Act revamp.

However, while we all advocate for first-party data to reign supreme over third-party cookies, we’re all still invested in the Privacy Sandbox and related efforts to be a success. Growth for businesses can’t come from first-party data alone, particularly when it comes to new customer acquisition. Google still needs to deliver a robust alternative to the third-party cookie in the Privacy Sandbox, and without the timeline pressure, we might see something a little more palatable for all stakeholders.

Ash Dharan, head of paid media, NP Digital Australia

We were not surprised in April when the previous delay was announced, and this latest announcement was almost expected, given the additional scrutiny from the UK’s competition and data authority earlier this month.

With the Privacy Act reforms set to be introduced at the start of next month, NP Digital is doubling down on our commitment to privacy-centric marketing solutions. We are focusing on first-party data (1PD) strategies and next-generation marketing solutions, which have already shown positive impacts on media effectiveness and efficiency. Our efforts are aimed at reducing reliance on third-party cookies, ensuring we stay ahead of regulatory changes and continue to respect consumer privacy.

Fiona Salmon, managing director at Mantis

With ongoing back and forth on a decision, this announcement isn’t a complete surprise and we know many will be glad to delay change a little longer, to ensure enhanced privacy measures are fit for purpose and not rushed.

Despite some specifics remaining uncertain, Google’s update does not alter the direction of travel towards a more privacy-conscious landscape, something Mantis is well-prepared for, thanks to our signed-in users and established IDs. Advertisers must continue their trajectories towards a cookieless future – or at least, one where their impact is diminished.

With regulatory bodies such as the ICO still discussing the unsuitability of cookies, and with the exact nature of Google’s Privacy Sandbox remaining unclear, let’s not discount another twist in the cookie saga. This latest development benefits the ecosystem by preventing the implementation of inadequate solutions (like FLoC, FLEDGE or Topics), and enabling meaningful conversations with advertisers about embedding contextual advertising and its performance advantages.

Continuing to implement contextual tools and first party data strategies should be an ongoing priority for advertisers looking to reach their target audiences in an effective way.

David Kennedy-Cosgrove, Managing Partner, WiredCo.

It’s been a long ride, with an unsurprising ending.

There’s two sides to this story. After years of uncertainty, performance marketers will be relieved that it’s business as usual in a data rich world. On the other side, for brand marketers, a cookie-less future did present an opportunity to liberate brands from a performance and data addicted world by reaching broader audiences.

It does leave one question slightly unanswered, if the Cookie Apocalypse was brought in as an answer to privacy – which many other platforms like Apple have run with – and GDPR, then what now? They’ve made some hints about a new experience in Chrome that lets the user choose, but let’s see.

Leonard Newnham, chief data scientist at LoopMe 

The reprieve for third-party cookies doesn’t change the fact that most consumers don’t want to be tracked across the web. The future is privacy-centric, and organisations must embrace tools that allow them to achieve effective advertising performance in a way that doesn’t compromise consumers’ privacy.

To create a true one-to-one connection with consumers, brands need to find more effective ways of reaching their audience. They should build out their data insight capabilities and use AI-driven predictive modelling to optimise their media based on multiple data signals, allowing them to improve outcomes by allocating resources in the most efficient way.

Melanie Hoptman, managing director, Asia Pacific at LiveRamp

Despite Google’s decision, we expect the shift towards a more privacy-focused adtech ecosystem to continue. Marketers have spent the past five years preparing shifts away from third-party signals, and with 50% of the web, along with CTV and mobile in-app, already cookieless, the transition to better-performing, authenticated signals remain essential,” says Melanie Hoptman, the Managing Director for LiveRamp Asia Pacific.

At the end of the day – consumers still rightfully want unprecedented control and transparency of their privacy, and we urge Aussie marketers to consider marketing strategies that continue to keep this at the forefront. By using dual strategies such as combining cookie-based reach with authenticated inventory, marketers will be able to maximise reach while tapping solutions that maintain privacy and trust – and lay the foundation for privacy-centric data-driven marketing, through cutting-edge solutions like Retail Media Networks and clean rooms.

Daniel O’Connor, commercial director ANZ at Quantcast

The decision by Google really doesn’t come as any surprise, as many ad tech companies and brands have moved beyond cookies. Around 57% of the internet is already in cookieless environments, so those not already testing are already missing out.

Whether third party cookies remain or stay, the industry has already evolved and advertisers know that they need to reduce their reliance on the third party cookies anyway. Even solutions that help advertisers reach their audiences in cookieless environments have become virtually redundant. Quancast has already successfully run more than 6,000 cookieless campaigns for our clients to help them reach audiences across all browsers.

Niall Hogan, general manager JAPAC, GumGum

With the Privacy Act reforms just days away, Google’s delay in phasing out third-party cookies signals a step back from advancing privacy.

Stakeholders across the spectrum—regulators, consumers, and brands—have been pushing for more privacy-conscious solutions. Google’s decision is a missed opportunity to lead in privacy innovation. Instead of clinging to outdated practices, the industry should adopt more respectful approaches like contextual advertising.

This method not only safeguards user privacy but also leverages advanced AI to better understand and engage with users. For Australian businesses, the challenge isn’t about cookies; it’s about aligning ad content with genuine user interests. Contextual advertising is poised to make these meaningful connections, surpassing the capabilities of third-party cookies, and helping local brands maintain trust and relevance in a privacy-focused market.

Geoffroy Martin, CEO at Ogury

In response to regulatory and market pressure, Google will be leaving the decision of whether or not to use third-party cookies up to consumers. It remains to be seen how it will implement this change, but if other ecosystems are any indication, this might lead to a vast majority opting out of tracking.

Advertising identifiers have already been phased out from Safari and Firefox, they are shrinking overtime on Chrome as well, and 50% of traffic on the open internet doesn’t have cookies. As a result, advertisers are already experiencing a decrease in cookie availability for their campaigns, while heightened demand is driving up prices.

The reality is our industry is at a decisive turning point in the protection of consumer data, and this shift began long before Google made the decision to deploy the Privacy Sandbox.

With all the above in mind, advertisers should not view Google’s announcement as an opportunity to postpone their move to solutions that are not exclusively relying on 3rd party identifiers. It’s pointless for our industry to cling to a model that is doomed to disappear. Rather, it’s time for advertisers to invest in alternative solutions which allow them to scale independently of future industry decisions, while prioritising consumer privacy.

Chris Hogg, chief revenue officer at Lotame

Google may no longer be ending third-party cookies by its own hand, but the slow march of progress will still see them rendered obsolete sooner or later. Users and regulators are increasingly privacy-focused and, given cookies will be “opt-in” across the board, there will still be a need for other signals to fill the gaps — especially across channels where cookies are long gone or were never present to begin with.

“The fate of third-party cookies will be as a small part of an ever-expanding array of data points, becoming less relevant over time as more privacy-first, platform-agnostic solutions evolve. No one that wishes to remain competitive should think they can take their foot off the pedal of first-party data collection and strategic data collaboration.

Mehrak Saheb, founder, digital media strategist at Prophesy Digital 

Google’s announcement to keep cookies is fantastic news and a big relief for many advertisers and smaller publishers who were just not ready. Despite all the efforts over the past four years to find alternatives, we still haven’t landed on a perfect replacement for cookies. The Google Privacy Sandbox and first-party data approaches were not going to fully offset the signal loss from cookie removal, so this decision is a win for the entire industry.

We can’t afford to get too comfortable however. If there’s one thing we’ve learned from the iPhone experience, it’s that when given the choice, people generally prefer not to be tracked. Google’s decision will certainly slow down the data signal loss, but it’s still a challenge we need to address proactively.

Paul Sinkinson, managing director, Analytic Partners AU

Consistent testing has shown that relying on cookie based measurement for planning your media leaves a load of money on the table – and you could already be missing more than half the clicks and views anyway due to issues with third party data.

It’s been very encouraging to see so many alternative solutions start to emerge, many of which were providing more certainty for marketers, and our hope is that those continue to build and gain traction as cookies continue to fade out, albeit more slowly.

The message for all marketers is simple: don’t miss this opportunity to put in place the solutions and learnings that will actually improve your performance. The biggest benefit of all the work that’s been done over the last four years isn’t about offsetting the harm of cookie loss, but about realising they actually never worked the way many people thought, and you could have been doing better.

Nathan Jolly

Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.

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topics Analytic Partners AUCOOKIESEnigmaGoogleGumGumLiveRampLoopMeLotameMantisNP Digital AustraliaOguryProphesy DigitalQuantcastWiredCo.

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