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Google’s Shock U-Turn on Phasing Out Third-Party Cookies: What It ‘Actually’ Means for Cultural Marketing

Wednesday 28th August 2024

Introduction

Last month in a major shock to the marketing industry, Google announced a delay in its plan for phasing out third-party cookies with the Chrome browser. This has been a massive ‘event horizon’ in the digital marketing world, of when it will happen, as a lot of the functionality of personalised advertising and remarketing relies on cookies. So what does this actually mean for digital marketing in the cultural sector? Let’s unpack this shift.

Context: Understanding Privacy Sandbox & Cookies

Google introduced the Privacy Sandbox in 2020 (which was already heavily delayed) as a more privacy-focused alternative to the widespread third-party cookies. These little tiny pieces of code have developed from their humble origins into being the foundation of targeted advertising. They allow marketers to serve personalised adverts based on behaviour on websites.

The Google Chrome browser which holds a staggering 65% share of the global browser users, was set to follow in the path of Safari and Firefox in moving away from third-party cookies, and with that kind of user percentage numbers, will have a significant impact on digital marketing strategies and campaigns.

So what exactly are these ‘cookies’? Well, fortunately for my waistline, they aren’t baked goods but are small text files that are stored on a user’s device by the website they visit. First-party cookies, which are created by the website you’re currently on, are generally harmless and necessary for things like keeping you logged in and remembering what you had in your cart. However, third-party cookies, are created by other ‘domains’ outside of the current website and can piece together behaviour across multiple sites (META, Google, etc.).

What Does This Mean for Marketers?

Google’s decision to delay (or even suspend, we aren’t quite sure) the phase-out of Third-party cookies means that marketers can continue to rely on them for a little while longer. This is particularly key for effective remarketing campaigns and allows the continued functionality of relevant ads linked with your products and those who have previously interacted with them – for example, reminding someone that they didn’t finish purchasing that ticket for the concert and providing a discount code, if pricing was an issue.

However, while this might seem like a ‘win’ for marketers, it’s definitely a setback for privacy advocates who have been pushing for stronger data protection measures. Third-party cookies are often considered invasive, and their continued use raises concerns about the extent of data being collected about users without their explicit consent, despite GDPR and CCPA et al.

There is still hope for privacy-conscious marketers though (privacy first everyone as it builds trust), with server-server tracking which we have seen to be taken on more and more in the last years in preparation for the big third-party phase-out. Unlike third-party cookies, server-to-server tracking collects data directly from your website’s server, giving you full control over what information is shared with third parties. This method is not only more secure but also more accurate, as it is less susceptible to ad-blocking technologies that can disrupt traditional cookie-based tracking.

How Will This Affect Our Work and Advice?

In our work, and likely yours, if you’ve got this far and not nodded off, the delay in phasing out third-party cookies has given us more time to adapt and adopt new strategies. The effectiveness of remarketing will continue to be a powerful tool for re-engaging audiences whatever you are promoting. But remember, this has already happened on other big browsers like Safari and Firefox, and also the Apple privacy update on iPhones (iOS 14 event anyone?).

We actually advise this as a reminder to focus on first-party data collection and infrastructure. Relying solely on third-party cookies is still not a sustainable strategy in the long term. Investing in API-based and server-to-server tracking solutions will not only future-proof our marketing efforts but also ensure that we’re respecting our audience’s privacy.

We need to really stay ahead of the curve as much as possible with the confusedly morphing digital landspace. Embracing new technologies and adapting to changes in privacy regulations, will allow us all to deliver effective, personalised marketing campaigns that resonate with our audiences – while building trust while respecting their right to privacy.

TL: DR

This may feel like Google has given a temporary reprieve from the big change, but it is essential to use the time wisely and continue the evolution and adaption. Let’s continue to refine our strategies, explore new technologies, and ensure that our marketing efforts remain both effective and ethical.