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Industry Reacts To Google’s Backflip: ‘Why Switch Off The Cash Cow’, ‘Cookies Are Doomed Either Way’ & ‘Multi-Touch Attribution Sucks’

Written by Arvind Hickman | Jul 24, 2024 3:30:00 AM
 

After kicking the ‘cookiepocalypse’ can down the road for several years, Google’s decision to row back on deprecating third party cookies has been met with a mixture of relief, cynicism and shrugged shoulders by leaders in Australia’s advertising, media and technology industries.

Google’s announcement that it will let Chrome users “make an informed choice” about web browsing, instead of killing third-party cookies altogether, has been cautiously welcomed by some and provides advertisers that rely on cookies to track and target across Chrome with a reprieve.

However, most industry leaders that B&T has approached believe that third-party cookies are largely redundant and will eventually go the way of the dodo.

“The regulators are going to kibosh this stuff anyway, so I don’t realistically think it changes any plans. Instead of this happening with Google it’ll just get whacked by regulators across the market instead,” argues Mutinex boss Henry Innis. “If anything, Google is making this a regulator problem rather than a Google problem.”

Large media owners and tech vendors have invested heavily in a post-third party cookies world and have warned marketers that Google’s latest decision will only accelerate signal loss and they should continue to prepare for more effective ways to target consumers across the internet.

Many believe that adhering to tougher privacy laws in the UK, Europe and Australia may have led Google to change tack, although some have suggested that keeping third-party cookies in play has more to do with protecting the search giant’s bottom line. 

Nonetheless, media owners, agencies and tech vendors advise marketers to march towards a cookieless world.

Here are a selection of views from the industry.  

Henry Innis, co-founder & global CEO, Mutinex

It doesn’t really change the very real issues in attribution at all. Multi-touch attribution sucks, signal loss is getting harder and people are getting harder to track. All these things remain true, it just means we don’t have the line in the sand moment to cut out all these junky methods, which is a little sad. I would have liked to have seen Google be braver and push the ad industry to a better standard than surveillance-tech. 

The regulators are making moves to shut down surveillance-tech, so I think by and large Google just doesn’t want to be responsible when the government is doing their job for them, and probably also wants to avoid the fight with advertisers. I think it’s clear that Google is under pressure from lobbying groups and the wider ad industry, alongside regulators. The ad industry has been good at making this an anti-trust issue. I do think our energy is better spent making better ads and deploying media capital well, instead of being over anxious about how much we can stalk people over the Internet. The latter will always eventually be regulated away from us. 

Suzie Cardwell, chief data officer, Nine 

Google’s decision not to deprecate third party cookies does not change the fact that the rich, scaled first party data from media owners like Nine is far more effective for brands in finding their target consumers and moving them to action.

The industry debate long ago moved on from third party versus first party data. Third party data scraped from the web and various undisclosed locations can never compete with the directly sourced, authenticated consumer data that media owners like Nine collect. We have a deep understanding of what our audiences want through their content consumption behaviour giving us rich signals of interest and intent for brands and advertisers. 

 Nine started on the first party data journey more than eight years ago, placing us in the strongest position to help brands find their customers and move them to action.

Paul Blackburn, director of commercial data & eCommerce, News Corp Australia

They have had a lot of consultations, including with the CMA in the UK, about what it means for a lot of different market participants. They have struggled to communicate the advantages of deprecating cookies completely and there are still some question marks with how to work with Sandbox.

Whilst they are not fully deprecating cookies, with user choice you are still going to see some signal loss based on the users’ decision to want to be privacy compliant and choose to opt out of cookies being tracked on the Chrome browser. It’s been reported that they are looking at limiting IP and other signals that they might be limiting as well. So my initial reaction was – as we discussed at D_Coded – is that we are still going to see signal loss, and new regulations from the Australian government will only exacerbate that. 

Smart marketers need to make privacy compliant first party data partnerships with trusted partners. Overall, it’s good that Google is no longer kicking the can down the street, and our message around partnering using privacy-compliant technology with our first party data – that signal gain message that we spoke about – has really stood true. Marketers shouldn’t see this as a pressure valve has been relieved so we can go slow, they still need to think about marketing effectiveness still, as we have shown with Journey Beyond was about showing four times the return on adspend versus current third party cookie methods.

Rachel Page, national digital sales director, Seven West Media

While Google’s latest announcement may be a relief to some, a successful and sustainable data strategy must be built on the foundation of authenticated audiences obtained through a true value exchange. The industry needs to remain focussed and not forget a number of other major browsers have already removed third party cookies. Chrome will still introduce new measures for users to maintain greater control of their data, and most importantly, Australia still faces one of the strictest privacy overhauls around the globe.

There is still a serious benefit for publishers, agencies and technology vendors who have invested in shifting their reliance form third party cookies, and I am confident the best outcomes will still be achieved by partnering with organisations who prioritise privacy alongside innovative and high-value advertising solutions with engaged audiences.

Shane Hanby, managing director ANZ, Epsilon

Google Chrome’s backflip on deprecating third-party cookies, despite the Privacy Sandbox initiative, highlights a complex balance between user privacy and digital advertising needs. Unlike Firefox and Safari, which have taken decisive steps to block third-party cookies, Google’s approach remains cautious. While the Privacy Sandbox introduces promising solutions like Federated Learning of Cohorts (FLoC), the continued use of cookies suggests a hesitation to fully commit to privacy-first measures. This decision may slow industry progress toward a more privacy-respecting web. Ultimately, Google’s path reflects ongoing challenges in harmonising technological innovation with commercial and privacy interests.’

Anna Sythong, group digital director, Initiative

Some would say, ‘there is power in knowing when to pivot’. Google has wisely heeded advice from a diverse group of stakeholders, delaying the end of cookies. This may seem like a win for advertisers, but we know third-party cookies are unstable. Brands should continue to leverage signals provided by current tech whilst also prioritising new, lasting capabilities from various vendors to continue to unlock growth opportunities.

Will the cookies still crumble? Industry leaders advise advertisers to wean their addiction to third-party cookies.

James Bayes, ANZ VP, The Trade Desk  

Amidst all of this, the advertising industry has moved on, realising that the digital world extends beyond Chrome. Today, we are engaged on devices, screens and apps across some of Australia’s fastest-growing cookieless channels including streaming, BVOD and digital audio.

This has paved the way for far more superior identity solutions that aren’t controlled by Big Tech, like Unified ID 2.0, which represents a significant upgrade to the internet. Whilst Google appears to have finally acknowledged that the best option for them is to give consumers choice, the question remains – will Google really give consumers choice? Or will they make the decision for consumers and then bury consumers’ access to change it?

Billy Loizou, area VP, Amperity

The sentiment towards Google’s decision to retain third-party cookies is primarily skeptical. This skepticism stems from Google’s move contradicting the industry trend, with competitors like Firefox, Safari, and Apple already abandoning cookies for new privacy-focused approaches. 

Google’s reliance on advertising revenue explains its reluctance to change, highlighting the tension between business interests and privacy concerns. The phrasing “so-called cookie-based advertising solution” in the content suggests doubt about Google’s stated motivations. This decision underscores the complex balance Google is trying to strike between maintaining its business model and addressing growing privacy concerns. Overall, the skepticism reflects a critical view of Google’s motivations, questioning whether this decision truly serves user interests or primarily protects the company’s bottom line.

 It encapsulates the ongoing debate in the tech industry between privacy protection and profit generation. Brands would be wise to focus on strengthening their first-party data strategies during this time. As privacy concerns continue to grow, the ability to effectively utilise data that customers willingly provide will become increasingly valuable. 

Andrea Martens, CEO, ADMA

ADMA recognises that Google’s decision to introduce a new experience in its Chrome browser giving consumers more control over their online data settings aligns with the transparency requirements under Australia’s proposed privacy reforms. Customers expect to have control over how their data is used, and any move to provide better control should be welcomed by marketers. It is a key factor in building consumer trust in the marketing ecosystem.

For marketers, the proposals put forward in the Privacy Sandbox to date have been concerning due to the negative impact they would have on advertising effectiveness and campaign performance, whilst still not meeting privacy laws. ADMA is encouraged to see that Google has taken a different approach, rather than dogmatically pursuing a solution that would not benefit either the consumer or the marketer. We look forward to Google engaging with industry as it rolls this out.

While today’s announcement may provide some marketers’ relief, ADMA urges the industry not to be complacent or throw away the good work they have done in developing a post-cookie strategy. There is already a move away from relying on third-party cookie strategies as deprecation has already taken place across other browsers and consumer expectations regarding how their data is used, with consent, in fair and reasonable ways, is becoming the required standard. Those who embed their marketing strategies in these more evolved fundamental principles will be ahead of the curve in this new paradigm.

Jonas Jaanimagi, technology lead, IAB Australia

Obviously a number of key questions remain as to the actual execution of this as an experience such as is this a consumer opt-in or an opt-out, and what is the potential impact on volumes of ad campaigns that will require the use of Google’s various Privacy Sandbox APIs for competent management and measurement. We fully expect to hear more news on these various details in the coming weeks.

A significant volume of future ad campaigns will still require the use of Google’s various Privacy Sandbox APIs for competent management and measurement – so we continue to recommend that both buyers and sellers continue to fully engage with, and fully test, the full range of evolving solutions for both web-based and in-app environments provided by the likes of Google, Microsoft and Apple.

Fiona Salmon, managing director, Mantis

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.

The end is nigh: Despite Google’s backflip, experts warn the cookiepocalypse is on the horizon. Image created using Canva’s AI generator.

Chris Parker, CEO, Awaken

It looks like Google’s decision to keep third party cookies alive is less about user experience and more about keeping the cash cow. By maintaining the status quo in their lucrative ad ecosystem, they’re ensuring that advertisers stay hooked on the precision targeting that fills Google’s dividends. After all, why fix what’s bringing in billions, even if it means kicking the can down the road on real privacy innovation? 

Google’s move to retain third party cookies ensures advertisers continue benefiting from rich data streams that drive targeted marketing and boost sales. With the Privacy Sandbox and API updates, advertisers can still leverage detailed user insights while Google tweaks Chrome just enough to appease regulators. It’s a clever balancing act, keeping the data-driven dollars flowing in and presenting just enough privacy changes to keep the watchdogs at bay. This way, Google ensures it remains a powerhouse in the ad ecosystem, all while giving the impression of forward momentum on privacy.

Tom Sheppard, GM of data & technology, Atomic 212°

Irrespective of the announcement we urge brands to continue to collect and develop 1st party data with the view to develop robust strategies to improve marketing performance and measurement capabilities. Don’t lose the momentum you have built up now.

Geoffroy Martin, CEO, Ogury

Advertising identifiers have already been phased out from Safari and Firefox, they are shrinking overtime on Chrome as well, and 50 per cent 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 Third 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.

Laura Kleiman, strategic partnerships manager, Bench Media

Brands, agencies, and even data vendors are breathing a sigh of relief that we can press pause on the doom-tinged cookieless alarm clock – even if for a few days. But definitely, the work is not done. We know Chrome makes up the majority of browser market share but nowhere near all of it, and marketing decisions should not live and die on Google’s word. 

There is an impending inevitable shift towards a more privacy-conscious digital landscape in Australia and brands still face that pivotal choice – adapt to new privacy and cookieless standards that have already infiltrated users across Safari and Firefox browsers, or stay left behind in a changing market. Advertisers and marketers must innovate and explore new strategies that prioritise consumer consent and data privacy compliance. 

Even while Google scratches their heads over what the next solution would look like, the future of digital advertising hinges on adapting to evolving privacy regulations and developing alternative tracking technologies that respect user privacy while meeting advertisers’ needs.

Chris Hogg, chief revenue officer, 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.

Angela Hampton & David Kennedy-Cosgrove, managing partners, WiredCo.

There’s two sides to this story. After years of uncertainty, performance marketers will be relieved that its 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.” 

For us, nothing really changes – it’s always been about ‘brandformance’ at WiredCo. We’ll continue to focus on wiring the science of performance marketing, with the power of broad reach brand building to help inform, enhance and achieve growth for our clients.

John Phung, head of data & analytics, G Squared

Third-party cookies are an outdated and increasingly ineffective technology. Cookies often fall short in accurately measuring and reporting marketing effectiveness. Their limitations in cross-device tracking and precise user identification make them less reliable for comprehensive attribution and targeting. Google’s decision to retain cookies, despite their known flaws, appears to be a step backward rather than a move towards innovative solutions.

It provides a less than confidence relief for digital marketers and the martech industry but also highlights the inadequacies of relying on an outdated technology. While it ensures continuity and stability, it delays the necessary evolution towards more advanced, privacy-friendly solutions. Google has acknowledged that the best option is to give consumers the choice, but will they find the choice easily if that’s not really the option?

Ronny Raichura, managing director, Impressive

The news is a huge sigh of relief I imagine for those advertisers that were unprepared for this – which I imagine is a hell of a lot of them. Common sense has prevailed here, as it was a completely unworkable solution. As a result, any temporary data loss of cookie deprecation has been mitigated and advertisers can breathe easier knowing that cookies remain a short term solution to ensure measurement of their campaigns stay intact.

Regardless of this news, as the world is increasingly cross-device and fragmented, in Australia we’ve been getting our clients ready for a cookieless environment by utilising first party data to optimise and measure campaigns for a good while now. We will continue with this approach using the most future-proofed technology – but it’s nice to now have more time without the spectre of the cookie apocalypse looming large.

Ben Cicchetti, SVP of marketing & communications, InfoSum 

Google’s announcement doesn’t change the fact that third-party cookies remain bad for consumer privacy. We already operate in a largely cookieless ecosystem, and any comprehensive media strategy must therefore account for numerous cookie-free environments, including display advertising on Safari and Firefox and emerging channels like CTV, retail media, and gaming platforms.

Forward-thinking organisations will continue to innovate and adopt privacy-focused approaches to data use and advertising. First-party data remains the cornerstone for advertisers seeking to reach consumers with the right message at the right moment, while media owners need it to serve relevant advertising to their audiences. 

Paul Hewett, CEO, In Marketing We Trust

Google said it’s introducing a “new experience in Chrome” that will allow users to make more informed decisions about their browsing and ad targeting, and they can adjust as they go.

84 per cent of Australians want more control and choice over the collection and use of their personal information, and just 32 per cent feel in control of their data and privacy, according to the Office of the Australian Information Commissioner. So while Google giving users more choice is a good thing, it shouldn’t change what we as marketers need to still do in order to protect as well as target our customers.

Google believes its Privacy Sandbox has protected its users enough while ensuring advertisers can target their audiences.

“We developed the Privacy Sandbox with the goal of finding innovative solutions that meaningfully improve online privacy while preserving an ad-supported internet that supports a vibrant ecosystem of publishers, connects businesses with customers, and offers all of us free access to a wide range of content…

“Early testing from ad tech companies, including Google, has indicated that the Privacy Sandbox APIs have the potential to achieve these outcomes. And we expect that overall performance using Privacy Sandbox APIs will improve over time as industry adoption increases. At the same time, we recognize this transition requires significant work by many participants and will have an impact on publishers, advertisers, and everyone involved in online advertising.”

To make this solution work, advertisers need to embrace Privacy Sandbox APIs, including Google’s Topic API, Protected Audience API and Attribution Reporting API, as well as other privacy solutions from Google, including Consent Mode V2 and Behavioral Modeling in Google Analytics 4, and Enhanced Conversion, Consent Mode and Conversion Modeling in Google Ads.

This announcement from Google essentially means users have more choice over their data. It remains to be seen whether users will opt out of cookies or not. If Consent Mode is anything to go by, we could see huge differences by country and location.

For example, for one of our clients, we saw that 15 per cent of users in Austria opted out, while 40 per cent of users in Germany opted out of cookies. This difference can have a huge impact on your data and data-driven decisions.

The data privacy landscape is rapidly evolving. And while this announcement from Google may make some advertisers breathe a sigh of relief, data privacy will continue to evolve in favour of the consumer. It makes sense to comply to the highest global standards of data privacy, such as the GDPR. Simultaneously, the coming announcement from the Australian Government on the upcoming privacy reforms, show that marketers still need to act fast to comply with stricter regulations. This announcement from Google is certainly not a stop sign.