Google reversed course: what does it mean for the market to keep third-party cookies

On July 22nd of this year, Google announced it would no longer disable third-party cookies in Chrome, contradicting its repeatedly publicized decision since 2019. Since cookies are the primary method for personalizing online ads, their absence could impact campaign success and jeopardize the revenue of millions of businesses. Not surprisingly, the market has been pressuring the tech giant for years to reconsider—a pressure that clearly had an effect.

But what has been the reaction to the announcement? According to Rafael Ataide, Data & Tech Director at the full-service agency AdtailThere's a mix of feelings surrounding the change. "The reversal isn't completely unexpected, considering the significant pressure from the advertising market and also the regulatory pressure on Google. There's a certain sense of relief, since many marketing professionals depend on third-party cookies for targeting and campaign effectiveness. But there's also a feeling of frustration, as it's a setback for data protection initiatives," he states.

Google's plan moving forward is to allow trackers to continue in use, but with the promise of developing a solution that allows users to decide how their browsing experience will be. In Brazil, this feature will comply with the demands of the General Data Protection Law (LGPD), which requires clear user consent regarding the collection of their personal data.

Privacy Sandbox

Google has introduced its own alternative initiative to cookies: the Privacy Sandbox, an advertising channel that delivers programmatic ads without revealing individual data. "The proposal for advertisers is a technology called FLoC (Federated Learning of Cohorts), where users will be grouped based on common interests, allowing companies to target their ads without needing to access each user's data," explains Rafael.

However, the transition to this advertising model proved more complex than expected. From technical challenges to regulatory concerns, the Privacy Sandbox has received numerous criticisms and is still in the testing phase. But it has not been discontinued—even now with secure cookies, the project is expected to move forward in search of market adoption.

Cookie-free alternatives

Although many companies were relieved by Google's change of heart, most didn't stand still over the past few years. Several solutions were devised to cope with a cookie-less future, and their development wasn't necessarily in vain.

"The strategies and lessons learned to overcome the situation may still be useful. Initiatives for collecting primary data, strengthening organic marketing, and the need for user-centric marketing strategies will continue to be important," Rafael points out.

Whether due to the LGPD (Brazilian General Data Protection Law) or the advancements demanded by the world over time, data privacy remains a crucial topic for marketing and advertising. This explains why the Privacy Sandbox, for example, is still active, and why professionals in the field must remain vigilant. “We need to be ahead of initiatives seeking a balance between data protection and the economic viability of companies. Even with third-party cookies still present, this is a journey that doesn't end here,” concludes the director.