Cookie depreciation: Was it just a half-baked idea after all?

Third party cookies are staying – for now. But with Chrome users soon empowered to opt out of cookie tracking, going all-in on third-party data risks alienating large portions of consumers.

Andy Platt, Managing Partner, Brave Bison Performance looks at why cookie-based tactics nowadays can stifle advertisers, keeping them focussed on gaming the system and driving short-term successes rather than delivering long-term, genuine value to brands. Originally published on Performance Marketing World.

Google's recent decision to reverse cookie depreciation was initially disappointing, but on reflection, hardly surprising. While this reversal may seem like a step back from a privacy-centric digital landscape, the time and effort brands spent preparing for a cookieless future should not be wasted.

The foundations for audience-centric, first-party data strategies are already there - now more than ever, we must use them to evolve our understanding of customers and measurement away from flawed models. This is key to delivering real value to audiences while creating a sustainable and privacy-focussed ecosystem.

Despite Google’s change in course, the industry must resist reverting to old habits and continue to prioritise customer privacy, double-down on innovation and reward boldness.

How did we get here?

The conversation around third-party cookies has been swirling for years. Back in the day, these small data files revolutionised digital advertising by enabling precise targeting and tracking.

Over time, however, they have come to symbolise invasive privacy practices and growing consumer distrust. They also stifle advertisers, keeping them focussed on gaming the system and driving short-term successes rather than delivering long-term, genuine value to brands.

The push towards a cookieless world seemed like a natural evolution. Facing mounting pressures, Google’s announcement to phase out third-party cookies by 2022 was seen as a landmark decision. Brands raced to develop robust first-party data strategies and alternative measurement techniques. Mediums like contextual advertising, email marketing and programmatic benefited as a result.

The road towards doing things properly was getting clearer - so why the sudden reversal?

The reasons behind Google’s cold feet

Google’s decision that it will no longer be removing third-party cookies sparks widespread concerns. Vendors, advertisers and brands are wary; after pouring years and buckets of resources into recalibrating their strategies, where do they stand now that cookies are staying? Should they, too, reverse course, and if they do, what’s to say that Google won’t change its mind again?

And it very well might. Like any business, Google must balance innovation with financial stability. A premature cookie apocalypse risked significant revenue losses, not just for Google but for the entire advertising ecosystem. The implication is that a cookieless future is still on the horizon - but only once Google is confident they won’t lose revenue.

In the meantime, Anthony Chavez, Vice President of Privacy Sandbox, has revealed Google’s new plan: “Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing.”

It’s clear that the decision to keep third-party cookies isn’t sustainable. They remain an imperfect tool fraught with privacy and efficacy issues; and now that users will be able to opt in or out of cookie tracking, going all-in on third-party data risks alienating large portions of consumers.

The eventual death of third-party cookies continues to loom, and those who spend this time innovating will be in the best position once the ball finally drops.

A strategic pause, not a step back: What advertisers can do now

This period of uncertainty provides a valuable opportunity to reevaluate and refine alternative data collection strategies. Third-party cookies may feel comfortable and familiar, but in using them we eclipse the backbone of advertising: people.

Instead of reverting back to platform hacks, the focus must stay on delivering personalised experiences that genuinely resonate with people. This is important to 81% of consumers, and brands using first-party data to drive personalisation see a nearly 3x revenue increase.

Here are some things to consider when navigating this critical juncture:

Develop full-funnel strategies that think holistically about the customer journey and the message being conveyed. This nurtures relationships with customers so that they feel a genuine connection with the brand, rather than being bombarded with impersonal ads

Accelerate digital opportunities to achieve more precise targeting, higher engagement and immersive experiences. Leveraging connected (TV) and digital out-of-home (DOOH) advertising holds real potential here.

Focus on building a sustainable marketing strategy that prioritises customer trust and long-term relationships over immediate, short-term gains. It may take longer, but Rome wasn’t built in a day and neither are the best advertising strategies

Google’s about-face could also be self-preservative. Together with Meta and Amazon, Google will control 60% of total ad revenue outside of China in 2024; it’s fair to say it has quite a lot of skin in the game of deciding where brands’ marketing budgets have historically gone.

By continuing to commit to first-part data strategies, brands can reduce their reliance on the triopoly. Exploring alternative platforms and owned media channels allows them to regain control of their marketing strategy, encourage creativity and innovation and forge deeper connections with customers.

A case for a hybrid approach

While it’s easy to vilify third-party cookies, the reality is that they provide meaningful insights and experiences to brands and consumers. Valuing personalised interactions, 81% of Gen Z are willing to share their data with brands, emphasising that it’s not the cookies that are inherently bad; it’s how they’re used, and this underscores the importance of responsible data usage.

As advertisers feel-out this interim period, a hybrid approach that leverages first and third-party data emerges as a pragmatic solution, especially for the 75% of marketers who still rely on cookies.

A hybrid approach balances personalisation with privacy, catering to diverse consumer preferences while gradually transitioning towards more sustainable, privacy-centric practices.

Rewarding boldness and innovation

Even though cookies aren’t going anywhere, the veil has already been lifted. After years of adapting and advancing, marketers know the limitations of third party data, and there’s no going back now; the path forward rewards strategic thinking and boldness, not quick fixes.

Advertisers should leverage this pause to refine their approaches and embrace new ways of connecting with consumers. In doing so, they not only safeguard against future disruptions, but also position themselves as leaders in a more ethical and sustainable digital landscape.