After years of planning to phase out third-party cookies, Google recently announced a shift in strategy. Instead of removing them entirely, users may soon have the choice to enable or disable third-party cookies—much like Apple’s App Tracking Transparency (ATT).
This reversal follows concerns from advertisers, a significant source of Google’s revenue, who feared that the loss of cookies in Chrome would limit their ability to target personalized ads, making them more dependent on Google's own user data.
The Timeline of Third-Party Cookie Removal
In 2019, Google aimed to enhance Chrome user privacy by removing third-party cookies and launching Privacy Sandbox, in line with GDPR and CCPA.
This caused a stir in the advertising industry, pushing publishers and advertisers to seek alternatives and focus on first-party data strategies. However, the pandemic delayed Google’s plans.
In January 2024, Google tested cookie removal with 1% of Chrome users, intending to phase them out by year-end. But by July, Google shifted to giving users the choice to keep third-party cookies, realizing the potential negative impact on ad revenue.
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Source: Google Support Article
Removing third-party cookies could drop programmatic revenue by 34% for Ad Manager users and 21% for AdSense. With Privacy Sandbox, those losses shrink to 20% and 18%, respectively. Google argues that Privacy Sandbox offers a more sustainable solution in the long term.
Google’s Shift Toward Apple-Like Controls
In January 2021, Apple introduced its ATT framework, requiring iOS apps to seek user permission for data tracking. At the time, Google expressed concern over the impact on ad revenue, noting:
“Apple’s ATT changes will reduce visibility into key metrics like app installs and sales, affecting how advertisers value and bid on ad impressions. App publishers may see a significant drop in Google ad revenue on iOS.” – Christophe Combette, Google Group Product Manager, Google Ads
Source: Apple Insider
Now, Google is considering a similar user-choice model for Chrome, potentially asking users whether to keep or block third-party cookies.
What Could Google’s User Choice Model Look Like?
If Google adopts a model like Apple’s ATT, it could take various forms:
- Per-Site Consent: Users might encounter consent popups on each new webpage, collecting permissions site-by-site. While this method aligns with existing cookie consent systems, it could lead to a frustrating user experience due to frequent popups.
- Session-Wide Consent: Upon opening Chrome, users could be prompted to enable or disable third-party cookies for their entire browsing session. However, many users may opt out, limiting advertisers' ability to deliver targeted ads.
- Periodic Consent Requests: Google could request permissions periodically, such as every few days or weeks. This method would balance consistent tracking with fewer popups, allowing users to adjust their settings when necessary.
Will the Shift to First-Party Data Stop?
No.
Since Google first announced plans to phase out third-party cookies, publishers and advertisers have invested heavily in first-party data strategies. This shift has reinforced the importance of building strong visitor relationships rather than relying solely on ads.
While Google has paused the removal of third-party cookies, they may revisit the decision in the future. The emphasis on a visitor-centric, first-party data approach remains crucial.
Until Google announces its next steps, the specifics of the user-choice model remain speculative. Have thoughts on what the future might hold? Feel free to share your ideas.
Curious about how you can future-proof your visitor relationships and revenue strategy? Request a demo with Admiral today and discover how our all-in-one platform can help you thrive in a world beyond third-party cookies.
