What Google’s Decision on Cookies Means for Your Business

For four years now, Google has been on the path to deprecating third-party cookies when using Google Chrome. However, in July 2024, Google announced they would no longer go through with the plan. Instead, they would develop a way to keep cookies while respecting the user’s need for privacy. As cookies are a significant part of a marketer’s strategy, it’s essential to understand how to anticipate and prepare for this change.

Behind Google’s Decision on Cookies

Cookies have long since been the cornerstone of advertising, allowing websites to track a user’s behavior and build their profile. This allowed marketers to send personalized ads based on that profile, potentially improving their sales. With that said, the rising concerns around privacy and consumer data made people wary of cookies, and in response, Google started the plan to phase them out. The idea would apply to the Google Chrome browser, but as it is the most widely used one, the effect would be long fetched.

The continuous delays in the phase-out plan proved it is easier said than done. Consumers may be placing more importance than ever on privacy, but this doesn’t change the fact that the world of advertising relies strongly on cookies. The continuous delays were meant to give advertisers time to find a solution – one that respects user privacy without negatively affecting any digital marketing endeavors.

The concerns expressed by advertisers and regulators kept pushing towards more and more delays. Initially, this late spring, Google intended to postpone the move until 2025, giving marketers more time to find an alternative way. However, the idea was dropped shortly after, when Google announced they would stop the plan altogether. Rather than “killing” cookies, they would focus on user choice with Privacy Sandbox.

What It Means for Businesses and Marketers

For startups and marketing professionals, this decision acts as a reprieve from their recent struggles. With this, they have the green light to gather data through third-party cookies, provided they obtain user permission. For the most part, here is what this decision means for businesses.

1.      More Time for Changes

The elimination of cookies has taken a U-turn, but this does not mean business will continue as usual. People’s desire for privacy will keep growing, and many would opt out of the cookie-gathering process when given the choice. This means companies should start looking into other methods to gather data, such as first-party data collection. With these, marketers can gain valuable insight without relying on third-party cookies.

2.     Continuity in Current Marketing Strategy

Google’s decision to renounce the cookie sweep means you can still use third-party cookies as part of your marketing strategy. This allows for a certain degree of continuity, helping you reach your audience. During this time, marketers can be proactive in adopting new solutions to enjoy a smoother switch in the future as users are given more choices.

3.     Innovation Opportunities

Google’s decision allows business owners and marketers to invest in innovation, with new technologies already announced. For instance, Google plans to implement the Privacy Sandbox throughout 2024, creating a balance between ad relevance and privacy. This strategy allows marketers to try new tools, creating advanced plans that help them gather data.

Google’s Alternative to Strike a Balance

Some might say that Google’s decision to cancel the plan means they no longer care about consumer privacy, but that is not entirely true. Instead, Google has shifted towards an “informed choices” model focusing on privacy and transparency. This means consumers should be given a more obvious opt-in and opt-out choice for cookies.

The possibility of opting out of cookies has been around for a while, but it will be advertised once more as a new experience. An official launch for the “Informed Choices” model has yet to appear, but it’s believed it will work alongside the Privacy Sandbox.

In the end, Google’s alternative is not to eliminate cookies altogether – it’s to give users more control. This way, people can choose what information they want to share or not and who they want to share it with. With the right strategy, advertisers could still get effective marketing without pushing the visitors away.

What Businesses Should Do

Even with the possibility of using cookies still out there, more and more users are declining them, which could affect your advertising campaign in the long run. In the end, companies are still advised to prepare for a future where third-party data is no longer considered the norm. Here is what they can do in this regard:

·        Shift Toward First-Party Data

With third-party data becoming a grey area, it is time to start looking toward first-party info collection. This includes surveys, loyalty programs, digital platform interactions, and so on. First-party data apps such as the ones offered by Froyoo can help gather real-time insights and analytics from your audience across different platforms, allowing you to create data-driven campaigns.

·        Keep an Eye on the Google Privacy Sandbox

The Google Privacy Sandbox initiatives are constantly changing and updating, offering business owners numerous alternatives to cookies. A good idea is to check the news on Google’s updates, experiment with these tools, and find ways to incorporate them into your marketing strategy. Ensure your marketing team is well aware of these changes and can adapt to a world where cookies are no longer in the spotlight.

·        Create a Diversified Marketing Strategy

A marketing plan should not rely solely on third-party cookies or first-party ones. As third-party cookies might not be that important, diversifying your strategy is a good idea. For instance, you should move on to contextual advertising rather than focusing on the visitors’ browsing history. This way, you can create a user persona based on the content they are looking at.

The Bottom Line

Google’s decision on cookies means advertisers are no longer on such a short leash to change their strategy today. This announcement allows them to continue business as usual, with cookies still an option for their advertisement. Having said that, it also means that things are changing, so marketers should look into ways to adapt.