Google puts an end to third-party cookies – or does it?
The topic of data protection on the internet has become increasingly important in recent years. In particular, the way in which companies collect and utilise user data has repeatedly been the focus of public debate. Third-party cookies are a particularly hot topic in this context. Google has announced that it will block these cookies in its Chrome browser. However, the implementation of this plan is proving more difficult than expected. Will Google actually put an end to third-party cookies, or is there another way?
What are third-party cookies?
Before discussing Google’s decision, it is important to understand what third-party cookies actually are. Cookies are small text files that are stored on a user’s device by websites to collect information about user behaviour. First-party cookies are set directly by the website the user is visiting. Third-party cookies, on the other hand, come from other providers who integrate advertising or content on this website, such as advertising networks.
Third-party cookies allow these external providers to track users across different websites and create detailed profiles about their behaviour. These profiles are extremely valuable for personalised advertising, as they make it possible to serve tailored ads that are precisely tailored to the interests and needs of users.
Google’s announcement and the consequences
In January 2020, Google announced that it would abolish third-party cookies in its Chrome browser within two years. With a market share of over 60%, Chrome is the most widely used browser in the world. Such a decision would therefore have a far-reaching impact on the advertising industry and the entire internet ecosystem.
The aim of this decision is to strengthen user data protection and meet the increasing demands for more transparency and control over personal data. By abolishing third-party cookies, Google is also responding to growing pressure from regulatory authorities and data protection activists, who have long criticised the fact that tracking users without their explicit consent is a violation of their privacy.
Delays and alternatives
Despite the big announcement, implementation has been repeatedly delayed. Initially, the end of third-party cookies was planned for 2022, then the date was postponed to the end of 2023 and finally to 2024. These delays are due to various challenges. On the one hand, there are technical hurdles in implementing alternatives, and on the other hand, the interests of advertisers, publishers and users must be harmonised.
As an alternative to third-party cookies, Google is working on the so-called ‘Privacy Sandbox’. This initiative should make it possible to place targeted advertising without jeopardising the privacy of users. A central component of the Privacy Sandbox is the so-called ‘Topics API’, in which the browser assigns users to interest categories instead of creating detailed profiles. These categories are then used for personalised advertising.
However, these alternatives have also been criticised. Many experts fear that they do not offer the desired level of data protection and continue to leave open opportunities for tracking users. In addition, Google could further expand its market power in the online advertising business by gaining control over the privacy sandbox.
What does this mean for companies?
For companies that rely on online advertising, the possible end of third-party cookies means a significant change. In particular, small and medium-sized companies that have previously relied on low-cost and effective advertising via third-party cookies may have to adapt their strategies.
An important alternative could be the increased use of first-party data. This is data that is collected directly from your own website, for example through newsletter registrations, customer accounts or direct interactions with users. This data is not only more privacy-friendly, but also often more accurate as it comes directly from the source.
Contextual advertising and targeted content marketing strategies are also becoming increasingly important. Instead of relying on detailed user profiles, adverts can be placed in a suitable content environment, which can also lead to good results.
Conclusion: An end with a question mark
It remains to be seen whether Google will actually draw the final line under third-party cookies. The delays in implementation and the unresolved issues surrounding the alternatives show that the path to a more data protection-friendly internet is not an easy one.
However, it is important for companies to adapt to the changes at an early stage and develop new strategies. The use of first-party data, contextual advertising and an increased focus on data protection and transparency could prove to be the better solution in the long term – regardless of whether Google implements its plans in the planned form or not.
